Banco Bilbao Vizcaya Argentaria, S.A.

BATS-CHIXE:BBVAE Stock Report

Market Cap: €51.1b

Banco Bilbao Vizcaya Argentaria Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: BBVAE (€8.97) is trading below our estimate of fair value (€21.05)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BBVAE. This is calculated by dividing BBVAE's market cap by their current earnings.
What is BBVAE's PE Ratio?
PE Ratio5.5x
Earnings€9.34b
Market Cap€51.12b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BBVAE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.7x
BARC Barclays
9x10.8%UK£38.2b
NWG NatWest Group
7.2x0.3%UK£32.0b
LLOY Lloyds Banking Group
7.2x4.2%UK£32.2b
STAN Standard Chartered
7.5x5.2%UK£23.6b
BBVAE Banco Bilbao Vizcaya Argentaria
5.5x-3.1%€51.1b

Price-To-Earnings vs Peers: BBVAE is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (7.7x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BBVAE is good value based on its Price-To-Earnings Ratio (5.5x) compared to the European Banks industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is BBVAE'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.

BBVAE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ratio5.7x

Price-To-Earnings vs Fair Ratio: BBVAE is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (5.7x).

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 BBVAE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.97
€11.39
+26.9%
9.0%€13.00€9.20n/a17
Nov ’25€9.35
€11.46
+22.6%
9.5%€13.60€9.20n/a17
Oct ’25€9.50
€11.44
+20.4%
9.5%€13.60€9.20n/a18
Sep ’25€9.55
€11.37
+19.1%
9.6%€13.60€9.20n/a18
Aug ’25€9.47
€11.48
+21.3%
10.4%€13.60€9.20n/a18
Jul ’25€9.23
€11.43
+23.8%
10.5%€13.54€9.20n/a18
Jun ’25€9.94
€11.29
+13.6%
10.7%€13.54€9.20n/a19
May ’25€10.19
€11.26
+10.6%
11.1%€13.44€9.20n/a20
Apr ’25€11.11
€10.48
-5.6%
14.0%€13.41€8.30n/a22
Mar ’25€9.24
€9.95
+7.6%
12.9%€13.00€8.00n/a23
Feb ’25€8.80
€9.91
+12.6%
13.1%€13.00€8.00n/a23
Jan ’25€8.19
€9.75
+19.0%
12.8%€13.00€7.80n/a23
Dec ’24€8.56
€9.55
+11.6%
11.2%€11.80€7.80n/a24
Nov ’24€7.59
€9.36
+23.3%
11.6%€11.80€7.10€9.3524
Oct ’24€7.71
€8.93
+15.7%
9.9%€10.50€7.10€9.5024
Sep ’24n/a
€8.81
0%
9.8%€10.30€7.10€9.5525
Aug ’24€7.03
€8.66
+23.1%
9.5%€10.30€7.10€9.4725
Jul ’24€7.05
€8.48
+20.3%
9.3%€10.00€6.90€9.2324
Jun ’24€6.26
€8.31
+32.7%
12.5%€10.00€6.00€9.9423
May ’24€6.65
€8.12
+22.1%
11.9%€9.80€6.00€10.1922
Apr ’24€6.61
€7.86
+18.9%
11.9%€9.30€6.00€11.1122
Mar ’24€7.22
€7.71
+6.8%
11.2%€9.20€6.00€9.2421
Feb ’24€6.75
€7.22
+7.0%
12.8%€9.00€5.50€8.8021
Jan ’24€5.65
€6.97
+23.2%
10.6%€8.50€5.50€8.1922
Dec ’23€5.58
€6.89
+23.5%
11.4%€8.50€5.50€8.5622
Nov ’23€5.25
€6.77
+28.9%
10.9%€8.00€5.50€7.5921

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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