Svenska Handelsbanken AB (publ)

DB:SVHH Stock Report

Market Cap: €19.1b

Svenska Handelsbanken Valuation

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

Below Fair Value: SVHH (€9.54) is trading below our estimate of fair value (€20.91)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SVHH. This is calculated by dividing SVHH's market cap by their current earnings.
What is SVHH's PE Ratio?
PE Ratio8.2x
EarningsSEK 26.98b
Market CapSEK 221.52b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SVHH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.9x
CBK Commerzbank
9.1x8.2%€18.8b
PCZ ProCredit Holding
4.2x9.9%€462.9m
MBK Merkur PrivatBank KgaA
10.5x8.6%€112.8m
VCB Commercial Bank for Foreign Trade of Vietnam
15.9x20.3%₫508.6t
SVHH Svenska Handelsbanken
8.2x-6.0%€221.5b

Price-To-Earnings vs Peers: SVHH is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (9.9x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SVHH 8.2xIndustry Avg. 7.4xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SVHH is expensive based on its Price-To-Earnings Ratio (8.2x) compared to the European Banks industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is SVHH'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.

SVHH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: SVHH is good value based on its Price-To-Earnings Ratio (8.2x) 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 SVHH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€9.56
€9.74
+1.8%
14.1%€12.53€8.04n/a16
Nov ’25€9.55
€9.78
+2.4%
14.0%€12.64€8.11n/a16
Oct ’25€9.20
€9.63
+4.7%
13.7%€12.32€7.92n/a17
Sep ’25€9.33
€9.53
+2.1%
14.3%€12.10€7.78n/a15
Aug ’25€9.32
€9.47
+1.6%
13.9%€11.98€7.70n/a15
Jul ’25€9.03
€9.28
+2.8%
12.8%€11.76€7.46n/a15
Jun ’25€8.63
€9.22
+6.8%
14.2%€11.93€7.35n/a15
May ’25€8.17
€9.43
+15.4%
14.4%€11.82€7.28n/a15
Apr ’25€9.36
€10.18
+8.7%
12.5%€11.69€7.36n/a15
Mar ’25€11.13
€10.59
-4.8%
12.3%€12.72€7.61n/a18
Feb ’25€9.97
€9.91
-0.6%
13.7%€12.32€7.13n/a18
Jan ’25€9.88
€9.99
+1.1%
14.7%€12.69€7.10n/a17
Dec ’24€8.62
€9.87
+14.5%
14.6%€12.51€7.00n/a17
Nov ’24€8.03
€9.57
+19.2%
13.7%€12.09€6.76€9.5518
Oct ’24€8.53
€9.68
+13.6%
12.3%€11.96€6.93€9.2018
Sep ’24€7.68
€9.44
+23.0%
11.9%€11.77€7.25€9.3320
Aug ’24€7.96
€9.64
+21.2%
12.1%€12.03€7.41€9.3220
Jul ’24€7.52
€9.67
+28.6%
11.0%€11.70€7.26€9.0319
Jun ’24€7.50
€9.84
+31.3%
11.3%€12.93€8.10€8.6319
May ’24€8.12
€10.25
+26.3%
10.0%€13.27€8.32€8.1720
Apr ’24€8.00
€10.54
+31.7%
9.6%€13.01€8.17€9.3619
Mar ’24€9.95
€10.70
+7.6%
9.3%€13.15€8.25€11.1319
Feb ’24€9.50
€10.82
+13.9%
10.7%€13.00€8.16€9.9720
Jan ’24€9.43
€10.99
+16.5%
10.4%€13.29€8.44€9.8819
Dec ’23€9.65
€10.93
+13.3%
10.6%€13.26€8.41€8.6219
Nov ’23€9.38
€10.76
+14.7%
10.8%€12.83€8.43€8.0319

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

Discover undervalued companies

Banco del Bajío Institución de Banca Múltiple

Mex$49.2b

Provides banking products and services in Mexico.

5NT

Mex$1.85

7D

-0.5%

1Y

-37.9%

Société Générale Société anonyme

€20.9b

Provides banking and financial services to individuals, corporates, and institutional clients in Europe and internationally.

SGE

€26.12

7D

-1.6%

1Y

15.5%

Grupo Financiero Banorte. de

Mex$402.0b

Through its subsidiaries, engages in the provision of banking and financial products and services in Mexico and internationally.

4FN

Mex$6.50

7D

-1.5%

1Y

-23.1%