AIB Group plc

LSE:AIBG Stock Report

Market Cap: UK£11.1b

AIB Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: AIBG (£4.22) is trading below our estimate of fair value (£8.69)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AIBG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AIBG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6x
STAN Standard Chartered
7.9x9.2%UK£19.3b
TCS TCS Group Holding
6.5xn/aUS$5.1b
HSBK Halyk Bank of Kazakhstan
3.2x7.9%US$5.1b
NWG NatWest Group
6.3x-2.6%UK£26.6b
AIBG AIB Group
6.5x-10.4%UK£12.9b

Price-To-Earnings vs Peers: AIBG is expensive based on its Price-To-Earnings Ratio (6.5x) compared to the peer average (6x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-0.1%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-0.1%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: AIBG is good value based on its Price-To-Earnings Ratio (6.5x) compared to the European Banks industry average (7.8x).

Price to Earnings Ratio vs Fair Ratio

What is AIBG'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.

AIBG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.5x
Fair PE Ratio5x

Price-To-Earnings vs Fair Ratio: AIBG is expensive based on its Price-To-Earnings Ratio (6.5x) compared to the estimated Fair Price-To-Earnings Ratio (5x).

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 AIBG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.22
UK£5.07
+20.2%
11.2%UK£6.35UK£4.12n/a12
Apr ’25UK£3.95
UK£4.88
+23.6%
12.5%UK£6.34UK£3.86n/a13
Mar ’25UK£3.74
UK£4.44
+18.8%
18.3%UK£6.00UK£2.27n/a14
Feb ’25UK£3.43
UK£4.39
+28.1%
18.0%UK£5.97UK£2.26n/a14
Jan ’25UK£3.34
UK£4.54
+36.2%
17.3%UK£6.01UK£2.28n/a14
Dec ’24UK£3.63
UK£4.63
+27.4%
17.6%UK£6.04UK£2.28n/a14
Nov ’24UK£3.59
UK£4.74
+32.1%
18.5%UK£6.00UK£2.31n/a14
Oct ’24UK£3.71
UK£4.59
+23.8%
20.0%UK£5.89UK£2.29n/a14
Sep ’24UK£3.63
UK£4.53
+24.9%
20.1%UK£5.85UK£2.28n/a15
Aug ’24UK£3.69
UK£4.37
+18.7%
18.9%UK£5.59UK£2.28n/a15
Jul ’24UK£3.28
UK£4.23
+29.2%
18.4%UK£5.61UK£2.29n/a15
Jun ’24UK£3.29
UK£4.17
+26.8%
17.1%UK£5.10UK£2.29n/a15
May ’24UK£3.43
UK£4.12
+20.1%
16.9%UK£5.13UK£2.34UK£4.1315
Apr ’24UK£3.26
UK£4.02
+23.3%
15.8%UK£5.02UK£2.34UK£3.9515
Mar ’24UK£3.54
UK£3.71
+4.8%
13.0%UK£4.51UK£2.33UK£3.7415
Feb ’24UK£3.43
UK£3.56
+3.7%
11.6%UK£4.03UK£2.32UK£3.4314
Jan ’24UK£3.22
UK£3.35
+4.1%
11.9%UK£3.86UK£2.33UK£3.3414
Dec ’23UK£2.57
UK£3.21
+25.1%
12.1%UK£3.78UK£2.28UK£3.6314
Nov ’23UK£2.52
UK£3.02
+19.9%
14.3%UK£3.79UK£2.28UK£3.5914
Oct ’23UK£2.17
UK£2.97
+36.6%
13.6%UK£3.92UK£2.36UK£3.7114
Sep ’23UK£1.98
UK£2.68
+35.3%
13.6%UK£3.56UK£2.23UK£3.6314
Aug ’23UK£1.92
UK£2.62
+37.0%
14.0%UK£3.53UK£2.22UK£3.6914
Jul ’23UK£1.87
UK£2.64
+41.1%
11.5%UK£3.19UK£2.28UK£3.2814
Jun ’23UK£2.08
UK£2.52
+21.3%
10.5%UK£3.03UK£2.26UK£3.2913
May ’23UK£1.73
UK£2.38
+37.4%
10.6%UK£2.95UK£2.04UK£3.4314

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

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