Crédit Agricole (ENXTPA:ACA) Valuation: Is There Further Upside After a Strong 1-Year Share Price Rally?

Crédit Agricole (ENXTPA:ACA) has been quietly rewarding patient shareholders, with the stock up around 39% over the past year and roughly 26% year to date, outpacing many European banking peers.

See our latest analysis for Crédit Agricole.

At a share price of €16.84, Crédit Agricole’s recent 1 month share price return of 7.67% sits neatly on top of an impressive 39.18% 1 year total shareholder return, suggesting momentum is still building as investors warm to its steady growth and income profile.

If this kind of steady bank rerating has caught your eye, it could be worth scanning other financials and beyond using our screen of fast growing stocks with high insider ownership.

With shares already up strongly and trading only modestly below analyst estimates and our intrinsic value, investors now face a key question: is Crédit Agricole still undervalued or is the market already pricing in future growth?

Most Popular Narrative Narrative: 10% Undervalued

With Crédit Agricole last closing at €16.84 against a narrative fair value of about €18.71, the valuation story leans in favor of further upside if the forecasts play out.

Strategic acquisitions and minority stake partnerships, such as with Degroof Petercam, RBC European asset servicing, and Victory Capital, are driving synergies, expanding wealth management/asset servicing platforms, and reinforcing cross-selling opportunities, which should boost both recurring revenues and earnings.

Read the complete narrative.

Want to see what kind of revenue glidepath and profit margins are needed to support that higher fair value, and how the future earnings multiple fits in? The narrative pulls together long term growth, steady profitability and a richer valuation multiple than today. Curious how those moving pieces combine to justify the upgrade from the current share price? Read on to unpack the full set of assumptions behind this target.

Result: Fair Value of €18.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution missteps on recent acquisitions, as well as a tougher macro or regulatory backdrop, could quickly undermine the margin and earnings trajectory underpinning this valuation.

Find out about the key risks to this Crédit Agricole narrative.

Build Your Own Crédit Agricole Narrative

If you would rather challenge these assumptions and dig into the numbers yourself, you can build a tailored view in just minutes: Do it your way.

A great starting point for your Crédit Agricole research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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