Nedbank Group Valuation
Is NCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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 NCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: NCO (€15.1) is trading below our estimate of fair value (€24.22)
Significantly Below Fair Value: NCO is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for NCO?
Key metric: As NCO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is NCO's PE Ratio? | |
|---|---|
| PE Ratio | 8.6x |
| Earnings | R15.90b |
| Market Cap | R137.23b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | n/a |
| Enterprise Value/EBITDA | n/a |
| PEG Ratio | 0.9x |
Price to Earnings Ratio vs Peers
How does NCO's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 9.9x | ||
CBK Commerzbank | 8x | 8.8% | €17.1b |
PCZ ProCredit Holding | 4.3x | 10.7% | €451.2m |
MBK Merkur PrivatBank KgaA | 10.2x | 8.6% | €108.9m |
2887 Taishin Financial Holding | 17.1x | 8.5% | NT$247.0b |
NCO Nedbank Group | 8.6x | 9.6% | €137.2b |
Price-To-Earnings vs Peers: NCO is good value based on its Price-To-Earnings Ratio (8.6x) compared to the peer average (9.9x).
Price to Earnings Ratio vs Industry
How does NCO's PE Ratio compare vs other companies in the European Banks Industry?
| 2 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 2 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: NCO is expensive based on its Price-To-Earnings Ratio (8.6x) compared to the European Banks industry average (7.3x).
Price to Earnings Ratio vs Fair Ratio
What is NCO'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 8.6x |
| Fair PE Ratio | 11.2x |
Price-To-Earnings vs Fair Ratio: NCO is good value based on its Price-To-Earnings Ratio (8.6x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | €15.10 | €16.71 +10.6% | 6.7% | €18.28 | €15.23 | n/a | 6 |
| Nov ’25 | €15.40 | €16.48 +7.0% | 6.2% | €18.12 | €15.10 | n/a | 7 |
| Oct ’25 | €15.50 | €16.48 +6.3% | 6.2% | €18.12 | €15.10 | n/a | 7 |
| Sep ’25 | €15.00 | €15.76 +5.0% | 5.0% | €16.85 | €14.62 | n/a | 7 |
| Aug ’25 | €13.90 | €14.31 +2.9% | 8.6% | €15.68 | €12.76 | n/a | 8 |
| Jul ’25 | €13.00 | €14.02 +7.9% | 8.9% | €16.05 | €12.37 | n/a | 8 |
| Jun ’25 | €11.20 | €13.14 +17.3% | 8.0% | €15.13 | €11.92 | n/a | 8 |
| May ’25 | €11.10 | €13.31 +19.9% | 8.8% | €15.32 | €12.07 | n/a | 8 |
| Apr ’25 | €10.90 | €12.68 +16.3% | 9.0% | €14.80 | €11.30 | n/a | 9 |
| Mar ’25 | €10.40 | €12.19 +17.2% | 9.8% | €14.12 | €10.80 | n/a | 9 |
| Feb ’25 | €10.40 | €12.36 +18.8% | 10.1% | €14.39 | €11.00 | n/a | 9 |
| Jan ’25 | €10.40 | €12.02 +15.5% | 10.8% | €14.02 | €10.25 | n/a | 9 |
| Dec ’24 | €10.20 | €12.60 +23.6% | 12.3% | €14.85 | €10.41 | n/a | 9 |
| Nov ’24 | €10.30 | €12.82 +24.5% | 11.7% | €15.13 | €10.64 | €15.40 | 9 |
| Oct ’24 | €9.95 | €12.68 +27.5% | 10.9% | €14.88 | €10.46 | €15.50 | 9 |
| Sep ’24 | €10.30 | €12.74 +23.7% | 10.6% | €14.74 | €11.16 | €15.00 | 9 |
| Aug ’24 | €11.80 | €12.70 +7.7% | 14.0% | €16.76 | €10.85 | €13.90 | 9 |
| Jul ’24 | €10.80 | €12.88 +19.3% | 13.3% | €16.87 | €11.07 | €13.00 | 9 |
| Jun ’24 | €9.65 | €12.26 +27.1% | 12.9% | €15.87 | €10.65 | €11.20 | 9 |
| May ’24 | €10.20 | €12.96 +27.1% | 12.0% | €16.64 | €11.27 | €11.10 | 9 |
| Apr ’24 | €11.40 | €13.49 +18.3% | 12.2% | €17.36 | €11.75 | €10.90 | 9 |
| Mar ’24 | €11.80 | €13.05 +10.6% | 7.8% | €15.37 | €11.98 | €10.40 | 9 |
| Feb ’24 | €11.90 | €13.68 +14.9% | 7.9% | €16.09 | €12.54 | €10.40 | 9 |
| Jan ’24 | €11.50 | €13.49 +17.3% | 7.7% | €15.95 | €12.53 | €10.40 | 9 |
| Dec ’23 | €12.60 | €14.18 +12.5% | 5.8% | €15.75 | €13.27 | €10.20 | 9 |
| Nov ’23 | €11.90 | €14.35 +20.6% | 4.5% | €15.61 | €13.54 | €10.30 | 9 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
Eurobank Ergasias Services and Holdings
€7.6b
Provides retail banking, corporate and private banking, asset management, treasury, capital market, and other services primarily in Greece, rest of Europe, and internationally.
EFGD
€2.02
7D
1.3%
1Y
23.9%
UniCredit
€55.2b
Provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe.
CRIN
€36.07
7D
-5.1%
1Y
46.1%
Société Générale Société anonyme
€20.4b
Provides banking and financial services to individuals, corporates, and institutional clients in Europe and internationally.
SGE
€25.43
7D
-2.8%
1Y
12.9%