ING (ENXTAM:INGA) Valuation in Focus as Shares Climb to One-Year Gains

ING Groep (ENXTAM:INGA) stock has seen a steady climb, returning 7% over the past month and nearly 9% in the past 3 months. Investors might be curious about what is driving these moves and what could come next.

See our latest analysis for ING Groep.

ING Groep’s share price momentum is clearly building, with a rally that has taken its year-to-date gain to an impressive 47%. That strength is supported by a 66% total shareholder return over the past year, indicating that investors are recognizing the group’s improving financials and renewed growth potential.

If ING Groep’s surge has you thinking bigger, it could be the perfect moment to expand your search and discover fast growing stocks with high insider ownership

With strong returns catching the eye, the key question is whether ING Groep’s recent share price jump leaves more value on the table, or if the market has already factored in expectations for future growth. Is there still a buying opportunity?

Most Popular Narrative: 19.8% Undervalued

With the last close at €22.40 and the narrative-backed fair value at €27.92, ING Groep, according to PittTheYounger, is trading well below its perceived potential. The scene is set for a closer look at the drivers behind this contrarian view.

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, i.e. 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.

Read the complete narrative.

Which game-changing factor did PittTheYounger spotlight to justify this steep discount? The answer lies in a dynamic shift in ING's profit engine, coupled with sector momentum most investors are still underestimating. The full breakdown reveals ambitious expectations, and the bold numbers supporting this target. You will want to see what is driving these projections.

Result: Fair Value of €27.92 (UNDERVALUED)

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

However, lingering concerns include geopolitical shocks or a sudden fall in loan demand. Both of these factors could quickly dampen ING Groep’s growth outlook.

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

Another View: Price Looks Elevated Versus Industry Averages

While the fair value narrative sees ING Groep as undervalued, a look at the market’s go-to valuation measure tells a more cautious story. ING trades at 13 times earnings, higher than both the European banks sector average (9.9x) and its peer group, and also sits above its fair ratio of 12.3x. This signals investors might be accepting more risk for future growth than is typical. Has the optimism gone too far, or is this a justified premium?

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

Build Your Own ING Groep Narrative

If you have a different perspective or want to see how your analysis stacks up, it's easy to create and share your own full narrative in just a few minutes. So why not Do it your way

A great starting point for your ING Groep research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Smart investors always keep an eye out for high-potential opportunities in every corner of the market. Don’t miss your chance to discover stocks making quiet moves right now.

• Tap into the future of healthcare by targeting innovation leaders with these 30 healthcare AI stocks.
• Uncover yield that stands strong above the rest when you seek out these 15 dividend stocks with yields > 3%, offering reliable income and growth potential.
• Step ahead of trends and unlock growth in digital finance with these 81 cryptocurrency and blockchain stocks, shaping tomorrow’s markets.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com