Mediobanca Banca di Credito Finanziario S.p.A.

DB:ME90 Stock Report

Market Cap: €11.5b

Mediobanca Banca di Credito Finanziario Valuation

Is ME90 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ME90 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ME90 (€13.8) is trading below our estimate of fair value (€21.99)

Significantly Below Fair Value: ME90 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ME90?

Key metric: As ME90 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ME90. This is calculated by dividing ME90's market cap by their current earnings.
What is ME90's PE Ratio?
PE Ratio9.2x
Earnings€1.25b
Market Cap€11.55b

Price to Earnings Ratio vs Peers

How does ME90's PE Ratio compare to its peers?

The above table shows the PE ratio for ME90 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.8x
CBK Commerzbank
8x8.8%€17.1b
PCZ ProCredit Holding
4.4x10.7%€459.4m
MBK Merkur PrivatBank KgaA
10.1x8.6%€107.3m
1140 Bank Albilad
16.7x12.3%ر.س43.8b
ME90 Mediobanca Banca di Credito Finanziario
9.2x4.0%€11.5b

Price-To-Earnings vs Peers: ME90 is good value based on its Price-To-Earnings Ratio (9.2x) compared to the peer average (9.8x).

Price to Earnings Ratio vs Industry

How does ME90's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ME90 9.2xIndustry Avg. 7.3xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ME90 is expensive based on its Price-To-Earnings Ratio (9.2x) compared to the European Banks industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is ME90's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ME90 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.2x
Fair PE Ratio10.4x

Price-To-Earnings vs Fair Ratio: ME90 is good value based on its Price-To-Earnings Ratio (9.2x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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