Abu Dhabi Islamic Bank - Egypt S.A.E.

CASE:ADIB Stock Report

Mkt Cap: ج.م4.3b

We’ve recently updated our valuation analysis.

Abu Dhabi Islamic Bank - EgyptE Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ADIB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ADIB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.3x
CANA Suez Canal Bank (S.A.E)
4xn/aج.م3.4b
SAIB Société Arabe Internationale de BanqueE
2.1xn/aUS$58.1m
HDBK Housing and Development Bank- Egypt (S.A.E)
4.7x8.3%ج.م11.5b
CIEB Credit Agricole - Egypt Bank (S.A.E.)
6.2x11.4%ج.م12.5b
ADIB Abu Dhabi Islamic Bank - EgyptE
2.3x12.2%ج.م4.3b

Price-To-Earnings vs Peers: ADIB is good value based on its Price-To-Earnings Ratio (2.3x) compared to the peer average (4.3x).


Price to Earnings Ratio vs Industry

How does ADIB's PE Ratio compare vs other companies in the African Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.2%
n/an/an/a

Price-To-Earnings vs Industry: ADIB is good value based on its Price-To-Earnings Ratio (2.3x) compared to the African Banks industry average (5.6x)


Price to Earnings Ratio vs Fair Ratio

What is ADIB'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.

ADIB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.3x
Fair PE Ratio5x

Price-To-Earnings vs Fair Ratio: ADIB is good value based on its Price-To-Earnings Ratio (2.3x) compared to the estimated Fair Price-To-Earnings Ratio (5x).


Share Price vs Fair Value

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

Below Fair Value: ADIB (EGP21.37) is trading below our estimate of fair value (EGP34)

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


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 ADIB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentج.م21.37
ج.م23.57
+10.3%
12.2%ج.م29.29ج.م20.60n/a6
Jan ’24ج.م17.97
ج.م22.68
+26.2%
15.2%ج.م29.29ج.م17.29n/a7
Dec ’23ج.م15.67
ج.م21.32
+36.1%
18.0%ج.م29.29ج.م16.80n/a7
Nov ’23ج.م12.82
ج.م21.68
+69.1%
16.9%ج.م29.29ج.م17.29n/a7
Oct ’23ج.م13.65
ج.م21.94
+60.7%
16.6%ج.م29.29ج.م17.29n/a7
Sep ’23ج.م13.51
ج.م21.69
+60.5%
16.5%ج.م29.29ج.م17.29n/a7
Aug ’23ج.م12.33
ج.م21.84
+77.2%
19.3%ج.م29.29ج.م17.29n/a5
Jul ’23ج.م11.35
ج.م20.32
+79.1%
24.5%ج.م29.29ج.م14.94n/a5
Jun ’23ج.م12.08
ج.م19.92
+64.9%
21.4%ج.م29.29ج.م14.94n/a7
May ’23ج.م12.63
ج.م19.92
+57.7%
21.4%ج.م29.29ج.م14.94n/a7
Apr ’23ج.م13.87
ج.م19.92
+43.6%
21.4%ج.م29.29ج.م14.94n/a7
Mar ’23ج.م13.50
ج.م19.92
+47.5%
21.4%ج.م29.29ج.م14.94n/a7
Feb ’23ج.م12.90
ج.م19.92
+54.4%
21.4%ج.م29.29ج.م14.94n/a7
Jan ’23ج.م15.77
ج.م19.92
+26.3%
21.4%ج.م29.29ج.م14.94ج.م17.977
Dec ’22ج.م14.87
ج.م17.97
+20.9%
8.8%ج.م20.00ج.م15.80ج.م15.674
Nov ’22ج.م14.46
ج.م16.43
+13.6%
16.4%ج.م20.00ج.م13.50ج.م12.823
Oct ’22ج.م15.06
ج.م16.43
+9.1%
16.4%ج.م20.00ج.م13.50ج.م13.653
Sep ’22ج.م16.44
ج.م16.80
+2.2%
14.4%ج.م20.00ج.م13.50ج.م13.514
Aug ’22ج.م13.09
ج.م16.80
+28.3%
14.4%ج.م20.00ج.م13.50ج.م12.334
Jul ’22ج.م11.76
ج.م16.80
+42.9%
14.4%ج.م20.00ج.م13.50ج.م11.354
Jun ’22ج.م11.88
ج.م16.94
+42.6%
12.9%ج.م20.00ج.م13.50ج.م12.085
May ’22ج.م10.31
ج.م15.79
+53.2%
20.6%ج.م20.00ج.م10.04ج.م12.636
Apr ’22ج.م10.99
ج.م15.79
+43.7%
20.6%ج.م20.00ج.م10.04ج.م13.876
Mar ’22ج.م12.26
ج.م15.39
+25.5%
21.9%ج.م20.00ج.م10.04ج.م13.506
Feb ’22ج.م11.96
ج.م16.55
+38.4%
26.0%ج.م21.80ج.م10.04ج.م12.905
Jan ’22ج.م11.95
ج.م15.10
+26.3%
27.3%ج.م21.80ج.م10.04ج.م15.775

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


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