Bank Alfalah Limited

KASE:BAFL Stock Report

Market Cap: PK₨137.2b

Bank Alfalah Valuation

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

Below Fair Value: BAFL (PKR86.97) is trading above our estimate of fair value (PKR70.58)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BAFL. This is calculated by dividing BAFL's market cap by their current earnings.
What is BAFL's PE Ratio?
PE Ratio3.1x
EarningsPK₨44.26b
Market CapPK₨137.17b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BAFL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average3.9x
BAHL Bank AL Habib
3.7xn/aPK₨152.3b
ABL Allied Bank
3.5xn/aPK₨172.4b
HMB Habib Metropolitan Bank
3.8xn/aPK₨91.4b
SCBPL Standard Chartered Bank (Pakistan)
4.7xn/aPK₨204.9b
BAFL Bank Alfalah
3.1x-10.1%PK₨137.2b

Price-To-Earnings vs Peers: BAFL is good value based on its Price-To-Earnings Ratio (3.1x) compared to the peer average (3.9x).


Price to Earnings Ratio vs Industry

How does BAFL's PE Ratio compare vs other companies in the Asian Banks Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BAFL 3.1xIndustry Avg. 8.8xNo. of Companies74PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BAFL is good value based on its Price-To-Earnings Ratio (3.1x) compared to the Asian Banks industry average (8.8x).


Price to Earnings Ratio vs Fair Ratio

What is BAFL'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.

BAFL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.1x
Fair PE Ratio3.2x

Price-To-Earnings vs Fair Ratio: BAFL is good value based on its Price-To-Earnings Ratio (3.1x) compared to the estimated Fair Price-To-Earnings Ratio (3.2x).


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 BAFL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentPK₨86.97
PK₨75.42
-13.3%
8.3%PK₨85.00PK₨69.00n/a5
Nov ’25PK₨67.63
PK₨75.42
+11.5%
8.3%PK₨85.00PK₨69.00n/a5
Oct ’25PK₨58.38
PK₨72.24
+23.7%
6.0%PK₨80.00PK₨69.00n/a5
Sep ’25PK₨57.60
PK₨72.24
+25.4%
6.0%PK₨80.00PK₨69.00n/a5
Aug ’25PK₨62.13
PK₨72.24
+16.3%
6.0%PK₨80.00PK₨69.00n/a5
Jul ’25PK₨68.86
PK₨72.24
+4.9%
6.0%PK₨80.00PK₨69.00n/a5
Jun ’25PK₨62.04
PK₨71.03
+14.5%
6.8%PK₨80.00PK₨65.00n/a6
May ’25PK₨58.81
PK₨65.95
+12.1%
15.1%PK₨80.00PK₨46.40n/a8
Apr ’25PK₨52.50
PK₨65.08
+24.0%
14.0%PK₨75.00PK₨46.40n/a8
Mar ’25PK₨58.43
PK₨62.79
+7.5%
14.4%PK₨75.00PK₨46.40n/a7
Feb ’25PK₨51.27
PK₨60.56
+18.1%
17.0%PK₨75.00PK₨45.00n/a8
Jan ’25PK₨49.20
PK₨56.36
+14.5%
16.4%PK₨69.10PK₨45.00n/a7
Dec ’24PK₨45.66
PK₨53.28
+16.7%
13.9%PK₨65.00PK₨45.00PK₨81.898
Nov ’24PK₨39.81
PK₨51.60
+29.6%
12.3%PK₨65.00PK₨45.00PK₨67.637
Oct ’24PK₨38.47
PK₨53.43
+38.9%
13.2%PK₨70.00PK₨45.00PK₨58.389
Sep ’24PK₨39.89
PK₨52.19
+30.8%
14.7%PK₨70.00PK₨41.00PK₨57.6010
Aug ’24PK₨41.01
PK₨51.69
+26.0%
14.4%PK₨70.00PK₨41.00PK₨62.1310
Jul ’24PK₨30.44
PK₨51.43
+69.0%
14.4%PK₨70.00PK₨41.00PK₨68.869
Jun ’24PK₨28.52
PK₨51.43
+80.3%
14.4%PK₨70.00PK₨41.00PK₨62.049
May ’24PK₨29.19
PK₨51.43
+76.2%
14.4%PK₨70.00PK₨41.00PK₨58.819
Apr ’24PK₨28.78
PK₨51.21
+77.9%
14.5%PK₨70.00PK₨41.00PK₨52.509
Mar ’24PK₨31.08
PK₨50.64
+62.9%
17.7%PK₨73.00PK₨41.15PK₨58.438
Feb ’24PK₨31.23
PK₨54.00
+72.9%
20.3%PK₨73.00PK₨40.00PK₨51.278
Jan ’24PK₨30.14
PK₨52.60
+74.5%
15.8%PK₨70.00PK₨40.00PK₨49.207
Dec ’23PK₨32.30
PK₨51.77
+60.3%
15.6%PK₨70.00PK₨40.00PK₨45.668

Analyst Forecast: Target price is lower than the current share price.


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