Dah Sing Banking Group Limited

DB:RY2 Stock Report

Market Cap: €1.2b

Dah Sing Banking Group Valuation

Is RY2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 RY2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RY2 (€0.86) is trading below our estimate of fair value (€2.22)

Significantly Below Fair Value: RY2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RY2?

Key metric: As RY2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RY2. This is calculated by dividing RY2's market cap by their current earnings.
What is RY2's PE Ratio?
PE Ratio4.7x
EarningsHK$2.14b
Market CapHK$10.01b

Price to Earnings Ratio vs Peers

How does RY2's PE Ratio compare to its peers?

The above table shows the PE ratio for RY2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.1x
PCZ ProCredit Holding
4.4x10.7%€461.8m
MBK Merkur PrivatBank KgaA
10x8.6%€108.9m
CBK Commerzbank
7.9x8.8%€16.9b
KKP Kiatnakin Phatra Bank
9.9x11.5%฿42.2b
RY2 Dah Sing Banking Group
4.7x5.6%€10.0b

Price-To-Earnings vs Peers: RY2 is good value based on its Price-To-Earnings Ratio (4.7x) compared to the peer average (8.1x).

Price to Earnings Ratio vs Industry

How does RY2's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RY2 4.7xIndustry Avg. 7.2xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RY2 is good value based on its Price-To-Earnings Ratio (4.7x) compared to the European Banks industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is RY2'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.

RY2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.7x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: RY2 is good value based on its Price-To-Earnings Ratio (4.7x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).

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 RY2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.86
€0.90
+5.0%
11.5%€1.01€0.80n/a2
Nov ’25€0.86
€0.90
+4.4%
11.5%€1.01€0.80n/a2
Oct ’25€0.80
€0.90
+13.6%
11.5%€1.01€0.80n/a2
Sep ’25€0.78
€0.92
+18.7%
11.5%€1.03€0.81n/a2
Aug ’25€0.71
€0.92
+28.7%
11.5%€1.03€0.81n/a2
Jul ’25€0.77
€0.92
+20.0%
11.0%€1.02€0.82n/a2
Jun ’25€0.80
€0.92
+14.7%
11.0%€1.02€0.82n/a2
May ’25€0.76
€0.92
+20.8%
11.0%€1.02€0.82n/a2
Apr ’25€0.65
€0.92
+41.2%
11.0%€1.02€0.82n/a2
Mar ’25€0.59
€0.83
+39.8%
10.0%€0.91€0.74n/a2
Feb ’25€0.54
€0.83
+52.8%
10.0%€0.91€0.74n/a2
Jan ’25€0.57
€0.84
+46.8%
6.9%€0.89€0.78n/a2
Dec ’24€0.58
€0.86
+49.1%
6.9%€0.92€0.80n/a2
Nov ’24€0.60
€0.94
+56.0%
16.3%€1.10€0.79€0.862
Oct ’24€0.61
€0.94
+53.5%
16.3%€1.10€0.79€0.802
Sep ’24€0.62
€0.94
+52.2%
16.3%€1.10€0.79€0.782
Aug ’24€0.67
€0.95
+42.5%
13.4%€1.07€0.82€0.712
Jul ’24€0.67
€0.99
+47.2%
6.0%€1.05€0.93€0.772
Jun ’24€0.68
€0.99
+46.1%
6.0%€1.05€0.93€0.802
May ’24€0.71
€0.99
+38.0%
6.0%€1.05€0.93€0.762
Apr ’24€0.69
€0.99
+41.9%
6.0%€1.05€0.93€0.652
Mar ’24€0.77
€1.02
+32.9%
11.8%€1.14€0.90€0.592
Feb ’24€0.72
€1.01
+39.3%
9.9%€1.10€0.87€0.543
Jan ’24€0.66
€1.13
+71.9%
8.6%€1.21€0.97€0.574
Dec ’23€0.66
€1.13
+73.2%
8.6%€1.21€0.97€0.584
Nov ’23€0.59
€1.13
+90.7%
8.6%€1.21€0.97€0.604

Analyst Forecast: Target price is less than 20% higher than the current share price.

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