Arbuthnot Banking Group PLC

OFEX:ARBN Stock Report

Market Cap: UK£149.4m

Arbuthnot Banking Group Valuation

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

Below Fair Value: ARBN (£6.8) is trading below our estimate of fair value (£11.13)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ARBN. This is calculated by dividing ARBN's market cap by their current earnings.
What is ARBN's PE Ratio?
PE Ratio4.9x
EarningsUK£30.85m
Market CapUK£149.42m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ARBN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average3.5x
CBG Close Brothers Group
3.4x16.0%UK£307.5m
STB Secure Trust Bank
2.5x32.7%UK£67.3m
BGEO Bank of Georgia Group
3.2x-3.2%UK£2.2b
TBCG TBC Bank Group
4.8x16.8%UK£1.7b
ARBN Arbuthnot Banking Group
4.9x8.7%UK£149.4m

Price-To-Earnings vs Peers: ARBN is expensive based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (3.5x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ARBN 4.9xIndustry Avg. 7.3xNo. of Companies47PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ARBN is good value based on its Price-To-Earnings Ratio (4.9x) compared to the European Banks industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is ARBN'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.

ARBN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.9x
Fair PE Ratio4.5x

Price-To-Earnings vs Fair Ratio: ARBN is expensive based on its Price-To-Earnings Ratio (4.9x) compared to the estimated Fair Price-To-Earnings Ratio (4.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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