Erste Group Bank AG

LSE:0MJK Stock Report

Market Cap: €20.7b

Erste Group Bank Valuation

Is 0MJK 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 0MJK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0MJK (€51.33) is trading below our estimate of fair value (€119.89)

Significantly Below Fair Value: 0MJK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0MJK?

Key metric: As 0MJK is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0MJK. This is calculated by dividing 0MJK's market cap by their current earnings.
What is 0MJK's PE Ratio?
PE Ratio6.7x
Earnings€3.10b
Market Cap€20.73b

Price to Earnings Ratio vs Peers

How does 0MJK's PE Ratio compare to its peers?

The above table shows the PE ratio for 0MJK 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
7.5x5.2%UK£23.6b
NWG NatWest Group
7.2x0.3%UK£32.0b
LLOY Lloyds Banking Group
7.2x4.2%UK£32.2b
BARC Barclays
9x10.8%UK£38.2b
0MJK Erste Group Bank
6.7x-2.4%€20.7b

Price-To-Earnings vs Peers: 0MJK 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 0MJK's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0MJK 6.7xIndustry Avg. 7.3xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0MJK is good value based on its Price-To-Earnings Ratio (6.7x) compared to the European Banks industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is 0MJK'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.

0MJK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.7x
Fair PE Ratio5.3x

Price-To-Earnings vs Fair Ratio: 0MJK is expensive based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (5.3x).

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 0MJK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€51.33
€58.46
+13.9%
7.9%€70.00€51.61n/a15
Nov ’25€51.88
€57.03
+9.9%
6.8%€68.00€51.61n/a15
Oct ’25€49.17
€55.65
+13.2%
8.6%€66.00€46.00n/a15
Sep ’25€49.41
€55.65
+12.6%
8.6%€66.00€46.00n/a15
Aug ’25€47.45
€52.26
+10.1%
9.7%€65.00€43.00n/a15
Jul ’25€45.00
€51.16
+13.7%
9.3%€60.00€43.00n/a15
Jun ’25€44.98
€50.59
+12.5%
9.3%€60.00€43.00n/a14
May ’25€44.76
€49.40
+10.4%
10.0%€60.00€43.00n/a14
Apr ’25€41.30
€47.37
+14.7%
11.5%€58.00€39.70n/a14
Mar ’25€37.33
€48.12
+28.9%
12.6%€60.00€39.70n/a15
Feb ’25€39.80
€47.25
+18.7%
11.9%€58.00€39.70n/a15
Jan ’25€36.60
€46.99
+28.4%
11.8%€58.00€39.70n/a15
Dec ’24€37.17
€46.85
+26.1%
10.8%€58.00€39.70n/a15
Nov ’24€33.76
€46.45
+37.6%
11.3%€56.00€39.48€51.8814
Oct ’24€32.86
€46.00
+40.0%
11.6%€55.00€37.56€49.1714
Sep ’24€32.96
€46.00
+39.5%
11.2%€55.00€37.56€49.4115
Aug ’24€33.97
€45.83
+34.9%
11.1%€55.00€37.56€47.4515
Jul ’24€31.27
€44.47
+42.2%
13.3%€56.00€34.56€45.0015
Jun ’24€30.77
€44.47
+44.5%
13.3%€56.00€34.56€44.9815
May ’24€32.92
€44.44
+35.0%
13.4%€56.00€34.56€44.7615
Apr ’24€30.35
€43.53
+43.5%
14.3%€54.00€32.10€41.3016
Mar ’24€36.20
€42.46
+17.3%
15.9%€53.00€32.10€37.3316
Feb ’24€34.44
€41.65
+20.9%
15.7%€52.00€32.10€39.8016
Jan ’24€29.87
€41.13
+37.7%
16.1%€52.00€32.00€36.6016
Dec ’23€29.13
€41.08
+41.0%
16.1%€52.00€32.00€37.1716
Nov ’23€25.02
€39.44
+57.6%
17.4%€52.00€30.00€33.7616

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

Discover undervalued companies

Banco Santander

€66.5b

Provides various financial services worldwide.

BNC

€3.62

7D

-3.1%

1Y

11.9%

Secure Trust Bank

UK£74.8m

Provides banking and financial products and services in the United Kingdom.

STB

UK£3.92

7D

6.8%

1Y

-40.1%

UniCredit

€55.8b

Provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe.

0RLS

€36.23

7D

-6.2%

1Y

44.9%