Riyad Bank Valuation

Is 1010 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 1010 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1010 (SAR26) is trading above our estimate of fair value (SAR0.41)

Significantly Below Fair Value: 1010 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1010?

Other financial metrics that can be useful for relative valuation.

1010 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does 1010's PE Ratio compare to its peers?

The above table shows the PE ratio for 1010 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.9x
1150 Alinma Bank
15.9x11.1%ر.س79.1b
1060 Saudi Awwal Bank
11.5x6.4%ر.س82.7b
1050 Banque Saudi Fransi
10.7x8.8%ر.س43.2b
1140 Bank Albilad
17.7x13.0%ر.س43.4b
1010 Riyad Bank
10x7.1%ر.س77.6b

Price-To-Earnings vs Peers: 1010 is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (13.9x).


Price to Earnings Ratio vs Industry

How does 1010's PE Ratio compare vs other companies in the Asian Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 1010 is expensive based on its Price-To-Earnings Ratio (10x) compared to the Asian Banks industry average (9x).


Price to Earnings Ratio vs Fair Ratio

What is 1010'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.

1010 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio13.1x

Price-To-Earnings vs Fair Ratio: 1010 is good value based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).


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 1010 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentر.س26.00
ر.س34.25
+31.7%
10.7%ر.س41.50ر.س24.00n/a15
May ’25ر.س27.45
ر.س34.81
+26.8%
10.9%ر.س41.50ر.س24.00n/a15
Apr ’25ر.س29.10
ر.س34.48
+18.5%
11.3%ر.س41.50ر.س24.00n/a15
Mar ’25ر.س31.10
ر.س33.64
+8.2%
11.7%ر.س38.90ر.س22.00n/a14
Feb ’25ر.س28.45
ر.س33.19
+16.7%
12.3%ر.س39.20ر.س22.00n/a13
Jan ’25ر.س28.75
ر.س33.43
+16.3%
7.3%ر.س37.40ر.س28.10n/a12
Dec ’24ر.س26.70
ر.س33.48
+25.4%
7.5%ر.س38.00ر.س28.10n/a12
Nov ’24ر.س27.40
ر.س34.32
+25.2%
6.5%ر.س37.00ر.س28.10n/a12
Oct ’24ر.س27.70
ر.س35.21
+27.1%
8.0%ر.س40.00ر.س29.70n/a12
Sep ’24ر.س30.45
ر.س34.95
+14.8%
7.9%ر.س40.00ر.س29.70n/a13
Aug ’24ر.س31.45
ر.س35.48
+12.8%
9.2%ر.س41.00ر.س29.70n/a13
Jul ’24n/a
ر.س35.83
0%
9.3%ر.س41.00ر.س29.70n/a12
Jun ’24ر.س31.60
ر.س35.01
+10.8%
12.3%ر.س40.00ر.س24.20n/a12
May ’24ر.س31.10
ر.س34.30
+10.3%
13.1%ر.س40.00ر.س24.20ر.س27.4512
Apr ’24ر.س29.70
ر.س35.58
+19.8%
13.7%ر.س42.00ر.س24.20ر.س29.1011
Mar ’24ر.س27.45
ر.س37.91
+38.1%
9.1%ر.س42.00ر.س30.40ر.س31.1010
Feb ’24ر.س30.60
ر.س39.23
+28.2%
8.7%ر.س42.00ر.س30.40ر.س28.459
Jan ’24ر.س31.70
ر.س39.79
+25.5%
10.1%ر.س46.00ر.س30.40ر.س28.759
Dec ’23ر.س34.30
ر.س41.60
+21.3%
5.9%ر.س46.00ر.س37.50ر.س26.709
Nov ’23ر.س36.20
ر.س41.43
+14.5%
5.9%ر.س46.00ر.س38.00ر.س27.409
Oct ’23ر.س31.75
ر.س41.19
+29.7%
5.9%ر.س46.00ر.س38.00ر.س27.7010
Sep ’23ر.س34.50
ر.س41.19
+19.4%
5.1%ر.س45.00ر.س38.20ر.س30.4510
Aug ’23ر.س36.95
ر.س40.77
+10.3%
5.1%ر.س44.00ر.س38.00ر.س31.4510
Jul ’23ر.س32.10
ر.س37.67
+17.4%
13.7%ر.س44.00ر.س28.90n/a11
Jun ’23ر.س37.95
ر.س37.69
-0.7%
13.8%ر.س44.00ر.س28.90ر.س31.6011
May ’23ر.س40.80
ر.س36.29
-11.0%
15.7%ر.س43.70ر.س26.80ر.س31.1012

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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