Absa Bank Kenya PLC

NASE:ABSA Stock Report

Market Cap: KSh83.6b

Absa Bank Kenya Valuation

Is ABSA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: ABSA (KES15.4) is trading above our estimate of fair value (KES7.6)

Significantly Below Fair Value: ABSA is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABSA. This is calculated by dividing ABSA's market cap by their current earnings.
What is ABSA's PE Ratio?
PE Ratio4.5x
EarningsKSh18.77b
Market CapKSh83.65b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABSA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average3.5x
SCBK Standard Chartered Bank Kenya
4.5xn/aKSh89.5b
COOP Co-operative Bank of Kenya
3.4xn/aKSh82.1b
NCBA NCBA Group
3.3xn/aKSh72.7b
KCB KCB Group
2.5x13.0%KSh125.8b
ABSA Absa Bank Kenya
4.5xn/aKSh83.6b

Price-To-Earnings vs Peers: ABSA is expensive based on its Price-To-Earnings Ratio (4.5x) compared to the peer average (3.5x).

Price to Earnings Ratio vs Industry

How does ABSA's PE Ratio compare vs other companies in the African Banks Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABSA 4.5xIndustry Avg. 5.2xNo. of Companies23PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABSA is good value based on its Price-To-Earnings Ratio (4.5x) compared to the African Banks industry average (5.2x).

Price to Earnings Ratio vs Fair Ratio

What is ABSA'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.

ABSA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ABSA's Price-To-Earnings Fair Ratio for valuation analysis.

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 ABSA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentKSh15.40
KSh17.22
+11.8%
3.7%KSh17.85KSh16.58n/a2
Nov ’25KSh15.30
KSh16.29
+6.5%
1.8%KSh16.58KSh16.00n/a2
Oct ’25KSh14.05
KSh16.29
+15.9%
1.8%KSh16.58KSh16.00n/a2
Sep ’25KSh14.30
KSh15.30
+7.0%
4.6%KSh16.00KSh14.60n/a2
Aug ’25KSh14.05
KSh15.30
+8.9%
4.6%KSh16.00KSh14.60n/a2
Jul ’25KSh14.05
KSh15.03
+7.0%
4.6%KSh16.00KSh14.50n/a3
Jun ’25KSh13.75
KSh15.03
+9.3%
4.6%KSh16.00KSh14.50n/a3
May ’25KSh13.75
KSh15.03
+9.3%
4.6%KSh16.00KSh14.50n/a3
Apr ’25KSh13.95
KSh15.03
+7.8%
4.6%KSh16.00KSh14.50n/a3
Mar ’25KSh12.95
KSh14.72
+13.6%
1.2%KSh14.93KSh14.50n/a3
Feb ’25KSh11.80
KSh14.72
+24.7%
1.2%KSh14.93KSh14.50n/a3
Jan ’25KSh11.45
KSh14.72
+28.5%
1.2%KSh14.93KSh14.50n/a3
Dec ’24KSh10.95
KSh14.73
+34.5%
1.4%KSh14.93KSh14.52n/a2
Nov ’24KSh11.55
KSh14.76
+27.8%
1.2%KSh14.93KSh14.52KSh15.303

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

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