Close Brothers Group plc

LSE:CBG Stock Report

Market Cap: UK£307.5m

Close Brothers Group Valuation

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

Below Fair Value: CBG (£1.99) is trading below our estimate of fair value (£10.02)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CBG. This is calculated by dividing CBG's market cap by their current earnings.
What is CBG's PE Ratio?
PE Ratio3.3x
EarningsUK£89.30m
Market CapUK£307.51m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CBG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average3.9x
STB Secure Trust Bank
2.8x32.7%UK£74.8m
ARBB Arbuthnot Banking Group
4.8x8.7%UK£144.6m
TBCG TBC Bank Group
5x16.8%UK£1.8b
BGEO Bank of Georgia Group
3.1x-3.2%UK£2.1b
CBG Close Brothers Group
3.3x19.2%UK£307.5m

Price-To-Earnings vs Peers: CBG is good value based on its Price-To-Earnings Ratio (3.3x) compared to the peer average (3.9x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CBG 3.3xIndustry Avg. 7.4xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CBG is good value based on its Price-To-Earnings Ratio (3.3x) compared to the European Banks industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is CBG'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.

CBG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.3x
Fair PE Ratio6.1x

Price-To-Earnings vs Fair Ratio: CBG is good value based on its Price-To-Earnings Ratio (3.3x) compared to the estimated Fair Price-To-Earnings Ratio (6.1x).

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 CBG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.99
UK£5.18
+159.9%
12.9%UK£6.20UK£4.25n/a9
Nov ’25UK£2.32
UK£5.19
+123.7%
12.6%UK£6.20UK£4.35n/a9
Oct ’25UK£4.03
UK£5.27
+30.9%
10.6%UK£6.20UK£4.50n/a10
Sep ’25UK£5.44
UK£5.55
+2.0%
13.0%UK£6.75UK£4.30n/a9
Aug ’25UK£4.97
UK£5.28
+6.1%
16.5%UK£6.75UK£3.75n/a9
Jul ’25UK£4.23
UK£5.28
+24.7%
16.5%UK£6.75UK£3.75n/a9
Jun ’25UK£4.79
UK£5.28
+10.2%
16.5%UK£6.75UK£3.75n/a9
May ’25UK£4.58
UK£5.41
+18.2%
19.9%UK£7.00UK£3.75n/a10
Apr ’25UK£4.18
UK£5.37
+28.3%
20.8%UK£7.00UK£3.75n/a9
Mar ’25UK£3.83
UK£5.44
+42.1%
24.3%UK£7.65UK£3.75n/a9
Feb ’25UK£5.28
UK£9.38
+77.9%
16.3%UK£12.35UK£7.65n/a10
Jan ’25UK£7.94
UK£9.96
+25.5%
13.7%UK£12.35UK£7.85n/a10
Dec ’24UK£7.70
UK£10.06
+30.7%
14.0%UK£12.35UK£7.85n/a10
Nov ’24UK£7.77
UK£10.31
+32.8%
8.8%UK£11.54UK£8.54UK£2.3210
Oct ’24UK£8.86
UK£10.47
+18.1%
7.2%UK£11.54UK£9.40UK£4.0310
Sep ’24UK£8.22
UK£10.73
+30.5%
9.6%UK£12.35UK£9.40UK£5.4410
Aug ’24UK£9.05
UK£10.78
+19.1%
9.8%UK£12.35UK£9.40UK£4.9710
Jul ’24UK£8.82
UK£10.87
+23.3%
10.2%UK£12.50UK£9.40UK£4.2310
Jun ’24UK£9.41
UK£10.60
+12.7%
12.8%UK£12.50UK£7.90UK£4.7911
May ’24UK£9.08
UK£10.53
+16.0%
12.5%UK£12.36UK£7.90UK£4.5811
Apr ’24UK£9.01
UK£10.58
+17.4%
12.8%UK£12.36UK£7.90UK£4.1811
Mar ’24UK£10.07
UK£10.58
+5.0%
12.7%UK£12.50UK£7.90UK£3.8312
Feb ’24UK£9.82
UK£10.78
+9.9%
10.0%UK£12.50UK£9.40UK£5.2812
Jan ’24UK£10.47
UK£12.11
+15.7%
13.7%UK£14.88UK£9.40UK£7.9412
Dec ’23UK£10.88
UK£12.01
+10.3%
13.5%UK£14.88UK£9.40UK£7.7012
Nov ’23UK£9.95
UK£12.01
+20.7%
13.5%UK£14.88UK£9.40UK£7.7712

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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