Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna

WSE:PKO Stock Report

Market Cap: zł69.9b

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna Valuation

Is PKO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: PKO (PLN55.9) is trading below our estimate of fair value (PLN114.26)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PKO. This is calculated by dividing PKO's market cap by their current earnings.
What is PKO's PE Ratio?
PE Ratio9.3x
Earningszł7.54b
Market Capzł69.88b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PKO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.2x
SPL Santander Bank Polska
8.7x4.1%zł46.2b
PEO Bank Polska Kasa Opieki
5.8x-5.8%zł36.6b
ING ING Bank Slaski
7.5x1.0%zł32.6b
MBK mBank
18.9x29.2%zł23.4b
PKO Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna
9.3x7.9%zł69.9b

Price-To-Earnings vs Peers: PKO is good value based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (10.2x).

Price to Earnings Ratio vs Industry

How does PKO's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PKO 9.3xIndustry Avg. 7.4xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PKO is expensive based on its Price-To-Earnings Ratio (9.3x) compared to the European Banks industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is PKO'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.

PKO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.3x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: PKO is good value based on its Price-To-Earnings Ratio (9.3x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).

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 PKO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentzł55.90
zł74.08
+32.5%
11.9%zł94.00zł60.00n/a12
Nov ’25zł55.80
zł74.50
+33.5%
11.9%zł94.00zł60.00n/a12
Oct ’25zł54.86
zł74.50
+35.8%
11.9%zł94.00zł60.00n/a12
Sep ’25zł57.88
zł72.14
+24.6%
11.7%zł84.50zł55.00n/a12
Aug ’25zł57.96
zł70.88
+22.3%
12.2%zł84.50zł55.00n/a12
Jul ’25zł62.58
zł69.13
+10.5%
13.1%zł84.50zł55.00n/a12
Jun ’25zł59.36
zł68.13
+14.8%
13.1%zł84.50zł55.00n/a12
May ’25zł60.70
zł67.00
+10.4%
11.9%zł83.00zł55.00n/a11
Apr ’25zł59.34
zł62.36
+5.1%
12.3%zł74.00zł52.40n/a10
Mar ’25zł56.24
zł55.84
-0.7%
14.1%zł74.00zł42.60n/a11
Feb ’25zł51.20
zł55.11
+7.6%
12.3%zł68.00zł42.60n/a11
Jan ’25zł50.32
zł52.54
+4.4%
9.9%zł61.00zł42.60n/a11
Dec ’24zł49.55
zł50.56
+2.0%
10.9%zł61.00zł42.00n/a11
Nov ’24zł43.52
zł43.50
-0.05%
9.5%zł50.00zł36.00zł55.8011
Oct ’24zł34.72
zł41.79
+20.4%
8.5%zł48.00zł36.00zł54.8612
Sep ’24zł37.86
zł41.55
+9.7%
10.4%zł48.00zł35.00zł57.8812
Aug ’24zł40.33
zł40.68
+0.9%
9.4%zł46.70zł35.00zł57.9612
Jul ’24zł36.15
zł39.78
+10.0%
10.7%zł46.70zł34.20zł62.5812
Jun ’24zł32.80
zł37.63
+14.7%
9.9%zł46.00zł33.00zł59.3612
May ’24zł32.07
zł36.92
+15.1%
11.3%zł46.00zł32.00zł60.7012
Apr ’24zł28.52
zł37.21
+30.5%
11.6%zł46.00zł32.00zł59.3413
Mar ’24zł31.35
zł37.23
+18.8%
11.9%zł46.00zł30.00zł56.2413
Feb ’24zł32.16
zł37.27
+15.9%
11.8%zł46.00zł30.00zł51.2013
Jan ’24zł30.29
zł36.35
+20.0%
14.2%zł46.00zł28.00zł50.3213
Dec ’23zł29.67
zł35.93
+21.1%
14.9%zł46.00zł27.00zł49.5513
Nov ’23zł26.07
zł36.83
+41.3%
24.5%zł59.05zł26.00zł43.5212

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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