United Bank Valuation

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

Below Fair Value: UBL (PKR335.77) is trading above our estimate of fair value (PKR40.88)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for UBL. This is calculated by dividing UBL's market cap by their current earnings.
What is UBL's PE Ratio?
PE Ratio	6.6x
Earnings	PK₨62.25b
Market Cap	PK₨408.58b

UBL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	-0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UBL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	4.2x
MCB MCB Bank	4.5x	-9.5%	PK₨310.9b
MEBL Meezan Bank	4.4x	n/a	PK₨462.0b
HBL Habib Bank	3.6x	4.4%	PK₨197.9b
SCBPL Standard Chartered Bank (Pakistan)	4.5x	n/a	PK₨195.1b
UBL United Bank	6.6x	-10.8%	PK₨411.0b

Price-To-Earnings vs Peers: UBL is expensive based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (4.2x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: UBL is good value based on its Price-To-Earnings Ratio (6.6x) compared to the Asian Banks industry average (8.5x).

Price to Earnings Ratio vs Fair Ratio

What is UBL'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.

UBL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.6x
Fair PE Ratio	3.4x

Price-To-Earnings vs Fair Ratio: UBL is expensive based on its Price-To-Earnings Ratio (6.6x) compared to the estimated Fair Price-To-Earnings Ratio (3.4x).

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 UBL forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	PK₨335.77	PK₨272.64 -18.8%	14.7%	PK₨322.20	PK₨231.00	n/a	5
Nov ’25	PK₨320.58	PK₨272.64 -15.0%	14.7%	PK₨322.20	PK₨231.00	n/a	5
Oct ’25	PK₨289.51	PK₨259.00 -10.5%	13.5%	PK₨322.00	PK₨218.00	n/a	5
Sep ’25	PK₨253.24	PK₨259.00 +2.3%	13.5%	PK₨322.00	PK₨218.00	n/a	5
Aug ’25	PK₨253.60	PK₨247.00 -2.6%	19.2%	PK₨322.00	PK₨180.00	n/a	5
Jul ’25	PK₨259.09	PK₨229.23 -11.5%	14.1%	PK₨276.00	PK₨180.00	n/a	8
Jun ’25	PK₨223.33	PK₨229.23 +2.6%	14.1%	PK₨276.00	PK₨180.00	n/a	8
May ’25	PK₨193.65	PK₨218.21 +12.7%	13.4%	PK₨262.00	PK₨180.00	n/a	8
Apr ’25	PK₨181.91	PK₨212.34 +16.7%	11.9%	PK₨262.00	PK₨180.00	n/a	8
Mar ’25	PK₨192.64	PK₨212.34 +10.2%	11.9%	PK₨262.00	PK₨180.00	n/a	8
Feb ’25	PK₨182.52	PK₨212.34 +16.3%	11.9%	PK₨262.00	PK₨180.00	n/a	8
Jan ’25	PK₨184.32	PK₨195.46 +6.0%	15.0%	PK₨262.00	PK₨165.00	n/a	8
Dec ’24	PK₨181.94	PK₨173.71 -4.5%	9.5%	PK₨200.00	PK₨143.50	n/a	9
Nov ’24	PK₨167.00	PK₨173.71 +4.0%	9.5%	PK₨200.00	PK₨143.50	PK₨320.58	9
Oct ’24	PK₨143.60	PK₨173.04 +20.5%	11.4%	PK₨206.00	PK₨143.50	PK₨289.51	9
Sep ’24	PK₨141.65	PK₨167.44 +18.2%	11.6%	PK₨206.00	PK₨143.50	PK₨253.24	10
Aug ’24	PK₨153.37	PK₨167.44 +9.2%	11.6%	PK₨206.00	PK₨143.50	PK₨253.60	10
Jul ’24	PK₨117.54	PK₨155.82 +32.6%	6.1%	PK₨171.00	PK₨140.00	PK₨259.09	9
Jun ’24	PK₨114.80	PK₨155.82 +35.7%	6.1%	PK₨171.00	PK₨140.00	PK₨223.33	9
May ’24	PK₨122.72	PK₨153.60 +25.2%	4.9%	PK₨165.00	PK₨140.00	PK₨193.65	9
Apr ’24	PK₨106.56	PK₨152.05 +42.7%	4.2%	PK₨160.00	PK₨140.00	PK₨181.91	9
Mar ’24	PK₨111.75	PK₨152.40 +36.4%	4.2%	PK₨160.00	PK₨140.00	PK₨192.64	9
Feb ’24	PK₨101.81	PK₨151.18 +48.5%	3.8%	PK₨157.00	PK₨140.00	PK₨182.52	8
Jan ’24	PK₨100.75	PK₨160.94 +59.7%	8.0%	PK₨185.61	PK₨140.00	PK₨184.32	7
Dec ’23	PK₨108.69	PK₨168.09 +54.6%	7.8%	PK₨190.00	PK₨155.00	PK₨181.94	7
Nov ’23	PK₨107.63	PK₨172.33 +60.1%	9.4%	PK₨200.90	PK₨155.00	PK₨167.00	8

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