Erste Group Bank AG

BATS-CHIXE:EBSV Stock Report

Market Cap: €20.7b

Erste Group Bank Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: EBSV (€51.4) is trading below our estimate of fair value (€120.75)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EBSV. This is calculated by dividing EBSV's market cap by their current earnings.
What is EBSV's PE Ratio?
PE Ratio6.7x
Earnings€3.10b
Market Cap€20.72b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EBSV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.7x
STAN Standard Chartered
7.3x5.1%UK£23.3b
NWG NatWest Group
7.1x0.3%UK£31.7b
LLOY Lloyds Banking Group
7.4x4.2%UK£33.1b
BARC Barclays
9x10.8%UK£38.0b
EBSV Erste Group Bank
6.7x-2.8%€20.7b

Price-To-Earnings vs Peers: EBSV is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (7.7x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies47PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EBSV is good value based on its Price-To-Earnings Ratio (6.7x) compared to the European Banks industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is EBSV'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.

EBSV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EBSV's Price-To-Earnings Fair Ratio for valuation analysis.

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 EBSV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€51.40
€58.46
+13.7%
7.9%€70.00€51.61n/a15
Nov ’25€51.25
€57.03
+11.3%
6.8%€68.00€51.61n/a15
Oct ’25€48.87
€55.65
+13.9%
8.6%€66.00€46.00n/a15
Sep ’25€48.83
€55.65
+14.0%
8.6%€66.00€46.00n/a15
Aug ’25€47.49
€52.26
+10.0%
9.7%€65.00€43.00n/a15
Jul ’25€44.11
€51.16
+16.0%
9.3%€60.00€43.00n/a15
Jun ’25n/a
€50.59
0%
9.3%€60.00€43.00n/a14
May ’25€43.96
€49.40
+12.4%
10.0%€60.00€43.00n/a14
Apr ’25€40.32
€47.37
+17.5%
11.5%€58.00€39.70n/a14
Mar ’25€37.50
€48.12
+28.3%
12.6%€60.00€39.70n/a15
Feb ’25€39.86
€47.25
+18.6%
11.9%€58.00€39.70n/a15
Jan ’25€36.58
€46.99
+28.5%
11.8%€58.00€39.70n/a15
Dec ’24€37.03
€46.85
+26.5%
10.8%€58.00€39.70n/a15
Nov ’24€33.77
€46.45
+37.6%
11.3%€56.00€39.48€51.2514
Oct ’24n/a
€46.00
0%
11.6%€55.00€37.56€48.8714
Sep ’24n/a
€46.00
0%
11.2%€55.00€37.56€48.8315
Aug ’24€34.59
€45.83
+32.5%
11.1%€55.00€37.56€47.4915
Jul ’24€30.52
€44.47
+45.7%
13.3%€56.00€34.56€44.1115
Jun ’24€30.16
€44.47
+47.4%
13.3%€56.00€34.56n/a15
May ’24€32.98
€44.44
+34.7%
13.4%€56.00€34.56€43.9615
Apr ’24€30.74
€43.53
+41.6%
14.3%€54.00€32.10€40.3216
Mar ’24€34.63
€42.46
+22.6%
15.9%€53.00€32.10€37.5016
Feb ’24€34.00
€41.65
+22.5%
15.7%€52.00€32.10€39.8616
Jan ’24€29.97
€41.13
+37.2%
16.1%€52.00€32.00€36.5816
Dec ’23€29.53
€41.08
+39.1%
16.1%€52.00€32.00€37.0316
Nov ’23€25.22
€39.44
+56.4%
17.4%€52.00€30.00€33.7716

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

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