Société Générale (ENXTPA:GLE): Assessing Valuation as Share Buy-Back Nears 80% Completion

Société Générale (ENXTPA:GLE) has advanced its EUR 1 billion ordinary share buy-back program, which is now reaching almost 80% completion. This move reduces available shares and can influence both investor sentiment and future earnings per share.

See our latest analysis for Société Générale Société anonyme.

The buy-back program comes amid a year of standout momentum for Société Générale Société anonyme. The stock’s share price has surged over 100% year-to-date, and its total shareholder return tops 145% for the past year, signaling renewed optimism around the bank’s ongoing transformation and growth strategy. Recent gains suggest market conviction is growing, especially as the company continues to deliver on capital return commitments.

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With shares up sharply and the buy-back nearly complete, investors must now ask themselves: is Société Générale undervalued after this rally, or is the market already pricing in the bank's next phase of growth?

Most Popular Narrative: 13.9% Undervalued

With Société Générale Société anonyme closing at €54.42, the most widely followed narrative points to a fair value of €63.17, indicating a notable gap. This suggests there is further upside potential according to analyst consensus, driven by strong structural shifts and operational progress at the bank.

Accelerating digital transformation, exemplified by Boursorama/BoursoBank surpassing client targets six quarters ahead of schedule and being recognized as the best digital bank in France, positions Société Générale to capture fee and commission income growth, drive operating leverage, and lower cost-to-income ratios. This supports future revenue and net margin expansion.

Read the complete narrative.

What’s fueling this optimism? Analysts are betting on rapid digital growth, bold efficiency plays, and margin boosts usually reserved for the banking sector’s elite. Which numbers power this punchy re-rating? Discover what could send expectations even higher if the narrative holds true.

Result: Fair Value of €63.17 (UNDERVALUED)

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

However, there are still concerns that a persistently low interest rate environment or slower cost reductions could weigh on Société Générale's profitability in the future.

Find out about the key risks to this Société Générale Société anonyme narrative.

Build Your Own Société Générale Société anonyme Narrative

If you see the story differently or want to test your own thesis, you can dive in and craft your own narrative based on the latest numbers in just a few minutes, Do it your way.

A great starting point for your Société Générale Société anonyme research is our analysis highlighting 3 key rewards and 4 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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