Banco Santander, S.A.

LSE:BNC Stock Report

Market Cap: UK£58.2b

Banco Santander Valuation

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

Below Fair Value: BNC (£3.79) is trading below our estimate of fair value (£8)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BNC. This is calculated by dividing BNC's market cap by their current earnings.
What is BNC's PE Ratio?
PE Ratio5.9x
Earnings€11.75b
Market Cap€69.70b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BNC 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
8.8x10.7%UK£37.4b
LLOY Lloyds Banking Group
7.7x4.2%UK£34.2b
NWG NatWest Group
7.1x0.3%UK£31.6b
HSBA HSBC Holdings
7.1x-1.4%UK£127.5b
BNC Banco Santander
5.9x-0.3%UK£69.7b

Price-To-Earnings vs Peers: BNC is good value based on its Price-To-Earnings Ratio (5.9x) compared to the peer average (7.7x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BNC 5.9xIndustry Avg. 7.4xNo. of Companies43PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BNC is good value based on its Price-To-Earnings Ratio (5.9x) compared to the European Banks industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is BNC'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.

BNC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.9x
Fair PE Ratio6x

Price-To-Earnings vs Fair Ratio: BNC is good value based on its Price-To-Earnings Ratio (5.9x) compared to the estimated Fair Price-To-Earnings Ratio (6x).

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 BNC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.79
UK£4.76
+25.5%
7.3%UK£5.26UK£3.91n/a21
Nov ’25UK£3.83
UK£4.82
+26.1%
7.3%UK£5.33UK£3.97n/a21
Oct ’25UK£3.67
UK£4.67
+27.3%
7.6%UK£5.25UK£3.91n/a22
Sep ’25UK£3.74
UK£4.82
+29.0%
7.5%UK£5.41UK£4.04n/a22
Aug ’25UK£3.61
UK£4.72
+31.0%
7.4%UK£5.31UK£3.96n/a22
Jul ’25UK£3.74
UK£4.69
+25.5%
8.6%UK£5.32UK£3.63n/a22
Jun ’25UK£4.10
UK£4.67
+13.9%
8.8%UK£5.36UK£3.66n/a22
May ’25UK£3.92
UK£4.52
+15.5%
7.6%UK£5.09UK£3.68n/a22
Apr ’25UK£3.86
UK£4.38
+13.5%
9.1%UK£4.97UK£3.26n/a22
Mar ’25UK£3.29
UK£4.28
+30.1%
9.2%UK£4.75UK£3.25n/a23
Feb ’25UK£3.23
UK£4.23
+30.9%
10.0%UK£4.73UK£3.07n/a23
Jan ’25UK£3.29
UK£4.27
+29.6%
10.3%UK£4.81UK£3.12n/a22
Dec ’24UK£3.27
UK£4.24
+29.8%
10.3%UK£4.79UK£3.10n/a22
Nov ’24UK£3.00
UK£4.28
+43.0%
11.2%UK£5.14UK£3.14UK£3.8323
Oct ’24UK£3.13
UK£4.18
+33.7%
10.0%UK£4.92UK£3.28UK£3.6723
Sep ’24UK£3.03
UK£4.16
+37.6%
9.8%UK£4.90UK£3.27UK£3.7424
Aug ’24UK£3.12
UK£4.13
+32.3%
10.2%UK£4.90UK£3.27UK£3.6124
Jul ’24UK£2.97
UK£3.98
+33.9%
10.0%UK£4.76UK£3.27UK£3.7421
Jun ’24UK£2.70
UK£3.96
+46.8%
12.4%UK£4.79UK£2.60UK£4.1020
May ’24UK£2.82
UK£4.07
+44.5%
12.9%UK£4.91UK£2.64UK£3.9220
Apr ’24UK£3.00
UK£4.07
+35.7%
12.0%UK£4.87UK£2.65UK£3.8620
Mar ’24UK£3.26
UK£3.97
+21.5%
13.2%UK£5.16UK£2.67UK£3.2920
Feb ’24UK£2.87
UK£3.57
+24.4%
14.6%UK£4.59UK£2.65UK£3.2320
Jan ’24UK£2.49
UK£3.54
+42.5%
15.1%UK£4.48UK£2.64UK£3.2919
Dec ’23UK£2.40
UK£3.45
+43.6%
16.0%UK£4.41UK£2.60UK£3.2719
Nov ’23UK£2.25
UK£3.36
+49.5%
20.2%UK£4.39UK£1.42UK£3.0019

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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