ING (ENXTAM:INGA) Valuation in Focus After Recent Quiet Climb

If you have been watching ING Groep (ENXTAM:INGA) shares lately, you might have noticed the steady climb that has attracted a fresh wave of attention. There was no major headline sparking this recent move; sometimes, quietly building momentum can be just as telling as a breaking news alert. For investors pondering their next steps, the question is not just why the stock moved, but whether the shift signals something deeper about where the company is headed. Taking a step back, ING Groep’s trajectory over the past year shows a noticeable uptick, with the past month alone delivering stronger gains. This comes on the heels of consistent performance improvements and growing confidence in the broader European banking sector. The multi-year return story only grows more compelling, suggesting that momentum is building rather than stalling. After such a solid run, the big question remains: is ING Groep undervalued at these levels, or is the current price already reflecting all the company’s future growth?

Most Popular Narrative: 20.4% Undervalued

According to the most widely followed narrative on ING Groep, the stock is considered undervalued by more than 20 percent compared to its fair value estimate. This view is grounded in the bank's strategic pivot toward non-lending income streams and ongoing exposure to European economic initiatives.

ING, of course, is a bank, and banks don't like falling interest rates, right? For the dominant stream of income is their core business model, that is, borrowing short-term and lending long-term, reaping the difference in interest rates in the process. This is known as the net-interest income (NII), a key performance indicator for banks and other financial operators. Now, you might expect that this wouldn't be a good time to buy bank shares, with interest rates well below their post-covid peak and the ECB set, if anything, to lower rates further if the impact from the Trump tariffs, for example, or an escalating spat with China or both factors combined subdue European economies more than anticipated. And you would be right.

Think ING’s new profit formula could break the mold? There’s a twist hidden deep in the narrative’s bullish assumptions. The secret ingredient behind that 20 percent discount is not what most investors expect. Wonder which unique financial lever is powering this “undervalued” call? Dive into the full narrative for all the surprising details before the next leg higher.

Result: Fair Value of $27.92 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained interest rate cuts or unexpected geopolitical tensions could quickly turn today's upside narrative into tomorrow's cautionary tale for ING Groep investors.

Find out about the key risks to this ING Groep narrative.

Another View: Market Ratios Send a Different Signal

Not everyone sees ING Groep as a bargain. Using industry ratios, ING’s shares look pricier than the European banking average, which challenges the idea that upside is a given. Could the market be too optimistic here?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding ING Groep to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own ING Groep Narrative

If you have your own perspective or want to examine ING Groep’s data from a fresh angle, it only takes a few minutes to craft your own view. Do it your way.

A great starting point for your ING Groep research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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