Discover Financial Services

LSE:0IBC Stock Report

Market Cap: US$44.2b

Discover Financial Services Valuation

Is 0IBC 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 0IBC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$238.95
Fair Value
28.3% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: 0IBC ($171.38) is trading below our estimate of fair value ($238.95)

Significantly Below Fair Value: 0IBC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0IBC?

Key metric: As 0IBC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0IBC. This is calculated by dividing 0IBC's market cap by their current earnings.
What is 0IBC's PE Ratio?
PE Ratio12.1x
EarningsUS$3.53b
Market CapUS$44.18b

Price to Earnings Ratio vs Peers

How does 0IBC's PE Ratio compare to its peers?

The above table shows the PE ratio for 0IBC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.8x
KSPI Kaspi.kz
12.2x17.0%US$22.8b
III 3i Group
8.2x16.4%UK£34.7b
IPF International Personal Finance
5.7x10.3%UK£281.4m
SUS S&U
8.9x21.7%UK£167.7m
0IBC Discover Financial Services
12.1x1.0%US$44.2b

Price-To-Earnings vs Peers: 0IBC is expensive based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (8.8x).

Price to Earnings Ratio vs Industry

How does 0IBC's PE Ratio compare vs other companies in the European Consumer Finance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
0IBC 12.1xIndustry Avg. 9.6xNo. of Companies5PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0IBC is expensive based on its Price-To-Earnings Ratio (12.1x) compared to the European Consumer Finance industry average (9.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0IBC'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.

0IBC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.1x
Fair PE Ratio21x

Price-To-Earnings vs Fair Ratio: 0IBC is good value based on its Price-To-Earnings Ratio (12.1x) compared to the estimated Fair Price-To-Earnings Ratio (21x).

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 0IBC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$171.38
US$189.62
+10.6%
13.7%US$233.00US$150.00n/a13
Jan ’26US$173.34
US$174.83
+0.9%
15.6%US$232.00US$137.00n/a12
Dec ’25US$182.43
US$168.42
-7.7%
13.5%US$210.00US$135.00n/a12
Nov ’25US$150.75
US$156.92
+4.1%
7.3%US$173.00US$135.00n/a12
Oct ’25US$137.41
US$151.25
+10.1%
7.1%US$170.00US$135.00n/a12
Sep ’25US$136.83
US$150.33
+9.9%
6.8%US$170.00US$135.00n/a12
Aug ’25US$136.43
US$150.33
+10.2%
6.8%US$170.00US$135.00n/a12
Jul ’25US$133.27
US$136.08
+2.1%
7.5%US$151.00US$115.00n/a13
Jun ’25US$121.15
US$136.15
+12.4%
7.5%US$151.00US$115.00n/a13
May ’25US$124.09
US$135.77
+9.4%
7.6%US$151.00US$115.00n/a13
Apr ’25US$130.64
US$126.46
-3.2%
12.7%US$145.00US$104.00n/a13
Mar ’25US$120.92
US$126.06
+4.3%
14.1%US$168.00US$104.00n/a16
Feb ’25US$105.85
US$116.95
+10.5%
8.8%US$141.00US$104.00n/a21
Jan ’25US$112.72
US$112.26
-0.4%
14.4%US$152.00US$88.00US$173.3421
Dec ’24US$95.04
US$105.69
+11.2%
15.7%US$152.00US$88.00US$182.4321
Nov ’24US$81.93
US$105.57
+28.9%
15.8%US$152.00US$90.00US$150.7520
Oct ’24US$87.27
US$114.91
+31.7%
13.6%US$152.00US$90.00US$137.4118
Sep ’24US$91.73
US$115.69
+26.1%
13.6%US$152.00US$90.00US$136.8318
Aug ’24US$104.20
US$120.08
+15.2%
10.8%US$146.00US$99.00US$136.4317
Jul ’24US$116.94
US$120.13
+2.7%
9.7%US$146.00US$101.00US$133.2716
Jun ’24US$105.29
US$118.47
+12.5%
9.3%US$146.00US$101.00US$121.1517
May ’24US$103.37
US$117.78
+13.9%
9.1%US$146.00US$101.00US$124.0918
Apr ’24US$98.82
US$118.72
+20.1%
8.4%US$146.00US$103.00US$130.6418
Mar ’24US$113.18
US$118.17
+4.4%
7.9%US$146.00US$104.00US$120.9218
Feb ’24US$116.18
US$117.17
+0.9%
8.6%US$146.00US$97.00US$105.8518
Jan ’24US$95.97
US$120.72
+25.8%
9.6%US$146.00US$97.00US$112.7218
Analyst Price Target
Consensus Narrative from 13 Analysts
US$191.56
Fair Value
10.5% undervalued intrinsic discount
13
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/10 00:33
End of Day Share Price 2025/01/10 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Discover Financial Services is covered by 52 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Stephen BiggarArgus Research Company
Terry MaBarclays
Bruce HartingBarclays