Suruga Bank Ltd.

DB:URU Stock Report

Market Cap: €1.2b

Suruga Bank Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: URU (€6.2) is trading below our estimate of fair value (€7.47)

Significantly Below Fair Value: URU is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for URU. This is calculated by dividing URU's market cap by their current earnings.
What is URU's PE Ratio?
PE Ratio11.2x
EarningsJP¥16.87b
Market CapJP¥188.97b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for URU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.1x
PCZ ProCredit Holding
4.4x10.7%€462.9m
BHLB Berkshire Hills Bancorp
32.2x40.8%US$1.3b
CNOB ConnectOne Bancorp
15.8x43.0%US$1.1b
OCFC OceanFirst Financial
11.9x6.1%US$1.2b
URU Suruga Bank
11.2x8.0%€189.0b

Price-To-Earnings vs Peers: URU is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
URU 11.2xIndustry Avg. 7.3xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: URU is expensive based on its Price-To-Earnings Ratio (11.2x) compared to the European Banks industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is URU'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.

URU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.2x
Fair PE Ratio9.9x

Price-To-Earnings vs Fair Ratio: URU is expensive based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).

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 URU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.20
€6.92
+11.5%
7.6%€7.56€6.09n/a4
Nov ’25€6.30
€6.85
+8.7%
7.6%€7.48€6.03n/a4
Oct ’25€6.85
€7.04
+2.8%
13.5%€8.27€5.60n/a4
Sep ’25€7.15
€6.60
-7.6%
13.5%€7.76€5.25n/a4
Aug ’25€7.25
€6.60
-8.9%
13.5%€7.76€5.25n/a4
Jul ’25€6.05
€5.82
-3.7%
13.7%€6.82€4.80n/a4
Jun ’25€6.35
€5.60
-11.9%
10.2%€6.51€4.93n/a4
May ’25€5.60
€5.60
-0.05%
10.2%€6.51€4.93n/a4
Apr ’25€5.25
€4.69
-10.6%
19.7%€5.61€3.43n/a3
Mar ’25€4.82
€3.86
-19.8%
11.4%€4.46€3.41n/a3
Feb ’25€5.15
€3.86
-25.0%
11.4%€4.46€3.41n/a3
Jan ’25€4.84
€3.86
-20.2%
11.4%€4.46€3.41n/a3
Dec ’24€4.54
€3.86
-14.9%
11.4%€4.46€3.41n/a3
Nov ’24€4.04
€3.76
-6.9%
6.2%€4.04€3.47€6.303
Oct ’24€3.92
€3.37
-14.1%
18.7%€4.06€2.54€6.853
Sep ’24€3.94
€3.18
-19.2%
19.5%€4.06€2.53€7.154
Aug ’24€3.68
€2.80
-23.8%
7.7%€3.17€2.64€7.254
Jul ’24€3.58
€2.80
-21.7%
7.7%€3.17€2.64€6.054
Jun ’24€3.38
€2.82
-16.5%
2.0%€2.91€2.77€6.354
May ’24€3.36
€2.82
-16.0%
2.0%€2.91€2.77€5.604
Apr ’24€3.12
€2.82
-9.6%
2.0%€2.91€2.77€5.254
Mar ’24€2.94
€2.87
-2.5%
2.1%€2.97€2.83€4.824
Feb ’24€2.90
€2.87
-1.0%
2.1%€2.98€2.83€5.154
Jan ’24€2.92
€2.75
-5.8%
4.5%€2.91€2.56€4.844
Dec ’23€2.86
€2.68
-6.3%
4.9%€2.87€2.53€4.544
Nov ’23€2.60
€2.68
+3.1%
4.9%€2.87€2.53€4.044

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

Discover undervalued companies

Alior Bank

zł12.0b

Provides banking products and services for individuals, businesses, and enterprises in Poland.

A6O

zł20.69

7D

3.7%

1Y

18.0%

Banco del Bajío Institución de Banca Múltiple

Mex$52.5b

Provides banking products and services in Mexico.

5NT

Mex$1.95

7D

8.3%

1Y

-29.9%

Société Générale Société anonyme

€20.0b

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

SGE

€24.66

7D

-7.4%

1Y

7.0%