Standard Chartered Valuation

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

Below Fair Value: STAN (£9.92) is trading below our estimate of fair value (£22.44)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for STAN. This is calculated by dividing STAN's market cap by their current earnings.
What is STAN's PE Ratio?
PE Ratio7.6x
EarningsUS$4.01b
Market CapUS$30.34b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for STAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.9x
NWG NatWest Group
7.4x1.0%UK£32.9b
LLOY Lloyds Banking Group
7.5x4.4%UK£33.3b
BARC Barclays
9.2x10.8%UK£38.9b
HSBA HSBC Holdings
7.6x-1.2%UK£134.9b
STAN Standard Chartered
7.6x5.2%UK£23.9b

Price-To-Earnings vs Peers: STAN is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (7.9x).


Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
STAN 7.6xIndustry Avg. 7.6xNo. of Companies42PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: STAN is good value based on its Price-To-Earnings Ratio (7.6x) compared to the European Banks industry average (7.6x).


Price to Earnings Ratio vs Fair Ratio

What is STAN'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.

STAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.6x
Fair PE Ratio6.2x

Price-To-Earnings vs Fair Ratio: STAN is expensive based on its Price-To-Earnings Ratio (7.6x) compared to the estimated Fair Price-To-Earnings Ratio (6.2x).


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 STAN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£9.92
UK£10.32
+4.1%
11.7%UK£12.93UK£8.57n/a14
Dec ’25UK£9.72
UK£10.28
+5.7%
11.1%UK£13.02UK£8.63n/a14
Nov ’25UK£9.14
UK£9.77
+7.0%
12.7%UK£12.81UK£7.90n/a14
Oct ’25UK£7.79
UK£9.09
+16.7%
14.5%UK£12.65UK£7.52n/a16
Sep ’25UK£7.79
UK£9.15
+17.4%
14.6%UK£12.80UK£7.60n/a16
Aug ’25UK£7.21
UK£9.35
+29.6%
16.5%UK£13.56UK£7.35n/a16
Jul ’25UK£7.32
UK£9.20
+25.7%
15.9%UK£13.29UK£7.50n/a15
Jun ’25UK£7.77
UK£9.21
+18.5%
15.7%UK£13.24UK£7.35n/a15
May ’25UK£6.95
UK£8.84
+27.1%
17.1%UK£13.00UK£6.94n/a16
Apr ’25UK£6.71
UK£8.58
+27.8%
13.2%UK£10.57UK£6.90n/a16
Mar ’25UK£6.91
UK£8.53
+23.5%
13.9%UK£10.55UK£6.51n/a17
Feb ’25UK£5.97
UK£8.45
+41.4%
13.7%UK£10.55UK£6.58n/a17
Jan ’25UK£6.67
UK£8.53
+28.0%
13.5%UK£10.74UK£6.70n/a17
Dec ’24UK£6.53
UK£8.68
+33.0%
13.0%UK£10.94UK£6.83UK£9.7217
Nov ’24UK£6.12
UK£8.84
+44.5%
12.0%UK£11.04UK£7.00UK£9.1417
Oct ’24UK£7.58
UK£9.21
+21.4%
8.6%UK£10.82UK£7.84UK£7.7917
Sep ’24UK£7.20
UK£8.87
+23.2%
13.3%UK£10.60UK£5.76UK£7.7918
Aug ’24UK£7.44
UK£8.67
+16.5%
13.7%UK£10.27UK£5.67UK£7.2118
Jul ’24UK£6.83
UK£8.38
+22.6%
14.2%UK£10.13UK£5.71UK£7.3217
Jun ’24UK£6.42
UK£8.55
+33.2%
13.6%UK£10.11UK£5.86UK£7.7717
May ’24UK£6.28
UK£8.37
+33.1%
13.7%UK£9.94UK£5.77UK£6.9517
Apr ’24UK£6.14
UK£8.39
+36.7%
12.7%UK£9.75UK£5.67UK£6.7117
Mar ’24UK£7.90
UK£8.42
+6.6%
12.5%UK£9.97UK£5.52UK£6.9118
Feb ’24UK£6.87
UK£7.42
+7.9%
13.7%UK£9.14UK£5.25UK£5.9718
Jan ’24UK£6.22
UK£7.34
+17.9%
14.7%UK£9.44UK£5.01UK£6.6718
Dec ’23UK£5.95
UK£7.49
+25.9%
15.4%UK£9.63UK£5.11UK£6.5320

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


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