Laurentian Bank of Canada

DB:LT7 Stock Report

Market Cap: €874.6m

Laurentian Bank of Canada Valuation

Is LT7 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LT7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LT7 (€19.4) is trading below our estimate of fair value (€50.4)

Significantly Below Fair Value: LT7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LT7?

Key metric: As LT7 is an unprofitable bank we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for LT7. This is calculated by dividing LT7's market cap by their current book value.
What is LT7's PB Ratio?
PB Ratio0.5x
BookCA$2.67b
Market CapCA$1.29b

Price to Book Ratio vs Peers

How does LT7's PB Ratio compare to its peers?

The above table shows the PB ratio for LT7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average0.6x
PCZ ProCredit Holding
0.4x10.7%€451.2m
UBK UmweltBank
0.9xn/a€225.7m
MBK Merkur PrivatBank KgaA
0.4x8.6%€108.9m
CBK Commerzbank
0.5x8.8%€17.1b
LT7 Laurentian Bank of Canada
0.5x103.2%€1.3b

Price-To-Book vs Peers: LT7 is good value based on its Price-To-Book Ratio (0.5x) compared to the peer average (0.6x).

Price to Book Ratio vs Industry

How does LT7's PB Ratio compare vs other companies in the European Banks Industry?

6 CompaniesPrice / BookEstimated GrowthMarket Cap
LT7 0.5xIndustry Avg. 0.8xNo. of Companies35PB00.61.21.82.43+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: LT7 is good value based on its Price-To-Book Ratio (0.5x) compared to the European Banks industry average (0.8x).

Price to Book Ratio vs Fair Ratio

What is LT7's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LT7 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.5x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate LT7's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LT7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€19.40
€19.00
-2.1%
6.9%€21.04€16.96n/a9
Nov ’25€16.80
€17.59
+4.7%
6.1%€19.17€15.21n/a10
Oct ’25€18.40
€17.59
-4.4%
5.4%€18.73€15.39n/a10
Sep ’25€17.60
€17.59
-0.06%
4.5%€18.80€16.11n/a10
Aug ’25€17.50
€18.00
+2.9%
9.6%€22.25€16.18n/a10
Jul ’25€18.60
€18.00
-3.2%
9.6%€22.25€16.18n/a10
Jun ’25€17.60
€18.78
+6.7%
9.0%€22.28€17.55n/a11
May ’25€17.20
€18.54
+7.8%
10.1%€22.36€16.26n/a11
Apr ’25€18.90
€18.54
-1.9%
10.1%€22.36€16.26n/a11
Mar ’25€17.50
€18.69
+6.8%
10.0%€22.46€16.33n/a11
Feb ’25€17.80
€20.03
+12.5%
7.9%€22.56€17.77n/a10
Jan ’25€18.30
€19.71
+7.7%
8.9%€22.57€17.78n/a11
Dec ’24€17.00
€21.11
+24.2%
14.2%€28.82€18.10n/a10
Nov ’24€16.90
€24.66
+45.9%
11.5%€29.91€18.78€16.8011
Oct ’24€21.00
€25.77
+22.7%
11.0%€31.34€22.29€18.4011
Sep ’24€24.80
€28.30
+14.1%
11.2%€36.85€24.57€17.6013
Aug ’24€27.00
€29.22
+8.2%
17.7%€40.77€23.10€17.5013
Jul ’24€22.80
€26.96
+18.2%
14.8%€38.26€22.96€18.6012
Jun ’24€20.80
€26.53
+27.5%
15.1%€37.82€22.00€17.6012
May ’24€21.00
€27.71
+31.9%
13.6%€37.94€22.76€17.2012
Apr ’24€21.40
€27.71
+29.5%
13.6%€37.94€22.76€18.9012
Mar ’24€23.40
€27.71
+18.4%
13.6%€37.94€22.76€17.5012
Feb ’24€24.20
€27.84
+15.0%
14.1%€38.04€22.83€17.8012
Jan ’24€22.60
€27.84
+23.2%
14.1%€38.04€22.83€18.3012
Dec ’23€23.40
€29.55
+26.3%
13.5%€38.46€23.95€17.0011
Nov ’23€22.20
€33.01
+48.7%
10.3%€40.35€29.69€16.9011

Analyst Forecast: Target price is lower than the current share price.

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