West Bromwich Building Society

BDL:WBROM Stock Report

Market Cap: UK£56.7m

West Bromwich Building Society Valuation

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

Below Fair Value: WBROM (£44) is trading below our estimate of fair value (£198.84)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WBROM. This is calculated by dividing WBROM's market cap by their current earnings.
What is WBROM's PE Ratio?
PE Ratio2.1x
EarningsUK£27.20m
Market CapUK£56.71m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WBROM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.9x
IOR Income Opportunity Realty Investors
11.7xn/aUS$70.1m
LUXOR B Investeringsselskabet Luxor
8.9xn/aDKK 560.0m
DBH DBH Finance
7.8xn/a৳7.7b
GICHSGFIN GIC Housing Finance
7.2xn/a₹11.9b
WBROM West Bromwich Building Society
2.1xn/aUK£56.7m

Price-To-Earnings vs Peers: WBROM is good value based on its Price-To-Earnings Ratio (2.1x) compared to the peer average (8.9x).


Price to Earnings Ratio vs Industry

How does WBROM's PE Ratio compare vs other companies in the European Diversified Financial Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WBROM 2.1xIndustry Avg. 11.4xNo. of Companies10PE0816243240+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WBROM is good value based on its Price-To-Earnings Ratio (2.1x) compared to the European Diversified Financial industry average (11.4x).


Price to Earnings Ratio vs Fair Ratio

What is WBROM'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.

WBROM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WBROM'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?

Analyst Forecast: Insufficient data to show price forecast.


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