Powszechny Zaklad Ubezpieczen Valuation

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

PZU (PLN42.68) is trading below our estimate of [[fair value]] (PLN115.8)

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

Below Fair Value: PZU (PLN42.68) is trading below our estimate of fair value (PLN115.8)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PZU. This is calculated by dividing PZU's market cap by their current earnings.
What is PZU's PE Ratio?
PE Ratio	7.4x
Earnings	zł4.96b
Market Cap	zł34.50b

PZU 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	1.5x
Enterprise Value/EBITDA	3.6x
PEG Ratio	6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PZU 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	16.5x
UNI Unipol Gruppo	7x	4.9%	€8.2b
BALN Bâloise Holding	29.9x	15.6%	CHF 7.5b
GJF Gjensidige Forsikring	19.7x	13.3%	NOK 96.1b
MAP Mapfre	9.4x	5.6%	€7.8b
PZU Powszechny Zaklad Ubezpieczen	7.4x	1.2%	zł34.5b

Price-To-Earnings vs Peers: PZU is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (16.5x).

Price to Earnings Ratio vs Industry

How does PZU's PE Ratio compare vs other companies in the European Insurance Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: PZU is good value based on its Price-To-Earnings Ratio (7.4x) compared to the European Insurance industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is PZU'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.

PZU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PZU's Price-To-Earnings Fair Ratio for valuation analysis.

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 PZU 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	zł42.68	zł52.71 +23.5%	12.7%	zł62.20	zł41.30	n/a	10
Nov ’25	zł39.70	zł52.71 +32.8%	12.7%	zł62.20	zł41.30	n/a	10
Oct ’25	zł42.20	zł52.71 +24.9%	12.7%	zł62.20	zł41.30	n/a	10
Sep ’25	zł46.64	zł52.48 +12.5%	12.5%	zł62.20	zł41.30	n/a	10
Aug ’25	zł47.61	zł52.88 +11.1%	12.7%	zł62.20	zł41.30	n/a	10
Jul ’25	zł51.34	zł52.93 +3.1%	12.8%	zł62.20	zł41.30	n/a	10
Jun ’25	zł50.00	zł52.93 +5.9%	12.8%	zł62.20	zł41.30	n/a	10
May ’25	zł51.28	zł52.94 +3.2%	9.9%	zł62.20	zł41.60	n/a	9
Apr ’25	zł48.81	zł51.05 +4.6%	9.2%	zł56.00	zł41.60	n/a	8
Mar ’25	zł49.57	zł50.80 +2.5%	8.8%	zł55.60	zł41.60	n/a	8
Feb ’25	zł48.01	zł50.67 +5.5%	8.7%	zł55.60	zł41.60	n/a	8
Jan ’25	zł47.27	zł50.10 +6.0%	7.7%	zł53.00	zł41.60	n/a	8
Dec ’24	zł46.74	zł45.90 -1.8%	16.9%	zł53.00	zł27.70	n/a	9
Nov ’24	zł47.61	zł45.86 -3.7%	12.0%	zł53.00	zł36.00	zł39.70	8
Oct ’24	zł41.37	zł42.32 +2.3%	12.7%	zł53.00	zł36.00	zł42.20	8
Sep ’24	zł42.24	zł42.04 -0.5%	13.1%	zł53.80	zł36.00	zł46.64	8
Aug ’24	zł40.77	zł39.62 -2.8%	14.3%	zł49.00	zł27.70	zł47.61	9
Jul ’24	zł39.41	zł39.44 +0.07%	14.7%	zł49.00	zł27.70	zł51.34	9
Jun ’24	zł39.63	zł39.44 -0.5%	14.7%	zł49.00	zł27.70	zł50.00	9
May ’24	zł38.30	zł38.54 +0.6%	14.9%	zł49.00	zł27.70	zł51.28	9
Apr ’24	zł35.08	zł37.71 +7.5%	14.9%	zł49.00	zł27.70	zł48.81	9
Mar ’24	zł36.76	zł38.71 +5.3%	12.5%	zł49.00	zł34.00	zł49.57	8
Feb ’24	zł36.67	zł38.55 +5.1%	13.0%	zł49.00	zł33.60	zł48.01	8
Jan ’24	zł35.42	zł38.17 +7.8%	12.7%	zł49.00	zł33.60	zł47.27	8
Dec ’23	zł31.94	zł36.46 +14.2%	14.6%	zł46.90	zł27.70	zł46.74	9
Nov ’23	zł26.80	zł35.95 +34.1%	17.6%	zł46.90	zł27.00	zł47.61	9

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