Banco Santander Valuation

Q: What is the Fair Price of SAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SAN (PLN20) is trading below our estimate of [[fair value]] (PLN33.73)

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: SAN (PLN20) is trading below our estimate of fair value (PLN33.73)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SAN. This is calculated by dividing SAN's market cap by their current preferred multiple.
What is SAN's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	€71.19b

SAN 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	13.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SAN 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	8.3x
PKO Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna	9.2x	6.8%	zł72.2b
SPL Santander Bank Polska	9.7x	6.2%	zł47.4b
ING ING Bank Slaski	7.9x	1.6%	zł34.5b
PEO Bank Polska Kasa Opieki	6.3x	-5.3%	zł39.2b
SAN Banco Santander	6.3x	0.5%	zł71.2b

Price-To-Earnings vs Peers: SAN is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (8.3x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.4%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.4%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: SAN is good value based on its Price-To-Earnings Ratio (6.3x) compared to the European Banks industry average (7.7x).

Price to Earnings Ratio vs Fair Ratio

What is SAN'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.

SAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.3x
Fair PE Ratio	10.1x

Price-To-Earnings vs Fair Ratio: SAN is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (10.1x).

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 SAN 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	zł20.00	zł24.32 +21.6%	6.9%	zł26.91	zł20.24	n/a	21
Oct ’25	zł18.91	zł24.04 +27.1%	7.6%	zł27.00	zł20.14	n/a	22
Sep ’25	zł19.38	zł24.07 +24.2%	7.5%	zł27.03	zł20.17	n/a	22
Aug ’25	zł18.17	zł24.05 +32.3%	7.4%	zł27.04	zł20.17	n/a	22
Jul ’25	zł19.09	zł24.05 +26.0%	8.6%	zł27.30	zł18.63	n/a	22
Jun ’25	zł20.50	zł23.49 +14.6%	8.8%	zł26.95	zł18.40	n/a	22
May ’25	zł20.01	zł22.86 +14.3%	7.6%	zł25.74	zł18.60	n/a	22
Apr ’25	zł19.55	zł22.00 +12.5%	9.1%	zł24.99	zł16.37	n/a	22
Mar ’25	zł16.78	zł21.57 +28.6%	9.2%	zł23.92	zł16.38	n/a	23
Feb ’25	zł16.30	zł21.41 +31.3%	10.0%	zł23.95	zł15.54	n/a	23
Jan ’25	zł16.64	zł21.41 +28.7%	10.3%	zł24.13	zł15.65	n/a	22
Dec ’24	zł16.40	zł21.40 +30.5%	10.3%	zł24.17	zł15.68	n/a	22
Nov ’24	zł15.37	zł21.91 +42.6%	11.2%	zł26.28	zł16.04	n/a	23
Oct ’24	zł17.00	zł22.45 +32.1%	10.0%	zł26.44	zł17.63	zł18.91	23
Sep ’24	zł15.80	zł21.59 +36.7%	9.8%	zł25.44	zł16.96	zł19.38	24
Aug ’24	zł15.84	zł21.35 +34.8%	10.2%	zł25.35	zł16.90	zł18.17	24
Jul ’24	zł15.01	zł20.58 +37.1%	10.0%	zł24.64	zł16.90	zł19.09	21
Jun ’24	zł14.20	zł20.79 +46.4%	12.4%	zł25.13	zł13.65	zł20.50	20
May ’24	zł14.75	zł21.27 +44.2%	12.9%	zł25.68	zł13.81	zł20.01	20
Apr ’24	zł16.05	zł21.69 +35.1%	12.0%	zł25.93	zł14.09	zł19.55	20
Mar ’24	zł17.20	zł20.89 +21.5%	13.2%	zł27.19	zł14.07	zł16.78	20
Feb ’24	zł15.45	zł19.07 +23.4%	14.6%	zł24.48	zł14.17	zł16.30	20
Jan ’24	zł13.20	zł18.79 +42.4%	15.1%	zł23.77	zł14.03	zł16.64	19
Dec ’23	zł13.32	zł18.66 +40.1%	16.0%	zł23.86	zł14.09	zł16.40	19
Nov ’23	zł12.34	zł18.36 +48.8%	20.2%	zł23.97	zł7.77	zł15.37	19
Oct ’23	zł11.74	zł18.87 +60.7%	20.0%	zł25.49	zł7.96	zł17.00	20

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