Al Rajhi Banking and Investment Valuation

Is 1120 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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 1120 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1120 (SAR92.3) is trading above our estimate of fair value (SAR31.56)

Significantly Below Fair Value: 1120 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1120?

Key metric: As 1120 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1120. This is calculated by dividing 1120's market cap by their current earnings.
What is 1120's PE Ratio?
PE Ratio	21.1x
Earnings	ر.س17.50b
Market Cap	ر.س369.20b

1120 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	1.5x

Price to Earnings Ratio vs Peers

How does 1120's PE Ratio compare to its peers?

The above table shows the PE ratio for 1120 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	10.4x
1180 Saudi National Bank	10x	8.4%	ر.س198.9b
1010 Riyad Bank	9.7x	5.9%	ر.س84.8b
1150 Alinma Bank	13.3x	11.0%	ر.س70.8b
1060 Saudi Awwal Bank	8.6x	6.9%	ر.س65.2b
1120 Al Rajhi Banking and Investment	21.1x	13.9%	ر.س369.2b

Price-To-Earnings vs Peers: 1120 is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

How does 1120's PE Ratio compare vs other companies in the Asian Banks Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 1120 is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the Asian Banks industry average (8.8x).

Price to Earnings Ratio vs Fair Ratio

What is 1120'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.

1120 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.1x
Fair PE Ratio	14x

Price-To-Earnings vs Fair Ratio: 1120 is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the estimated Fair Price-To-Earnings Ratio (14x).

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 1120 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	ر.س92.30	ر.س96.44 +4.5%	10.7%	ر.س116.00	ر.س77.30	n/a	17
Dec ’25	ر.س92.80	ر.س96.44 +3.9%	10.7%	ر.س116.00	ر.س77.30	n/a	17
Nov ’25	ر.س88.00	ر.س93.45 +6.2%	10.6%	ر.س107.00	ر.س73.50	n/a	17
Oct ’25	ر.س87.40	ر.س90.55 +3.6%	11.1%	ر.س111.00	ر.س73.50	n/a	17
Sep ’25	ر.س88.80	ر.س89.35 +0.6%	9.3%	ر.س106.00	ر.س73.50	n/a	17
Aug ’25	ر.س85.00	ر.س86.43 +1.7%	10.1%	ر.س102.00	ر.س66.73	n/a	17
Jul ’25	ر.س80.00	ر.س86.43 +8.0%	10.1%	ر.س102.00	ر.س66.70	n/a	17
Jun ’25	ر.س76.10	ر.س86.43 +13.6%	10.1%	ر.س102.00	ر.س66.70	n/a	17
May ’25	ر.س79.90	ر.س87.65 +9.7%	10.6%	ر.س103.00	ر.س68.00	n/a	17
Apr ’25	ر.س81.50	ر.س86.93 +6.7%	10.6%	ر.س103.00	ر.س68.00	n/a	15
Mar ’25	ر.س89.00	ر.س85.07 -4.4%	11.9%	ر.س103.00	ر.س66.70	n/a	14
Feb ’25	ر.س86.00	ر.س82.36 -4.2%	10.6%	ر.س98.00	ر.س65.70	n/a	14
Jan ’25	ر.س86.80	ر.س78.08 -10.0%	11.4%	ر.س92.00	ر.س62.00	n/a	13
Dec ’24	ر.س76.40	ر.س75.75 -0.9%	10.0%	ر.س85.70	ر.س62.00	ر.س92.80	12
Nov ’24	ر.س69.90	ر.س73.65 +5.4%	12.5%	ر.س85.70	ر.س56.60	ر.س88.00	12
Oct ’24	ر.س67.70	ر.س76.39 +12.8%	12.8%	ر.س91.00	ر.س59.20	ر.س87.40	12
Sep ’24	ر.س72.20	ر.س77.23 +7.0%	11.1%	ر.س91.00	ر.س62.40	ر.س88.80	13
Aug ’24	ر.س73.90	ر.س79.12 +7.1%	11.8%	ر.س95.00	ر.س62.40	ر.س85.00	13
Jul ’24	n/a	ر.س81.89 0%	10.7%	ر.س95.00	ر.س62.40	ر.س80.00	13
Jun ’24	ر.س72.30	ر.س82.25 +13.8%	10.1%	ر.س95.00	ر.س65.00	ر.س76.10	13
May ’24	ر.س76.10	ر.س83.47 +9.7%	10.3%	ر.س100.00	ر.س65.00	ر.س79.90	13
Apr ’24	ر.س73.50	ر.س84.74 +15.3%	10.7%	ر.س100.00	ر.س65.00	ر.س81.50	12
Mar ’24	ر.س72.10	ر.س86.45 +19.9%	10.1%	ر.س100.00	ر.س67.00	ر.س89.00	11
Feb ’24	ر.س81.10	ر.س91.48 +12.8%	12.5%	ر.س114.00	ر.س67.00	ر.س86.00	11
Jan ’24	ر.س75.50	ر.س93.65 +24.0%	12.8%	ر.س114.00	ر.س67.00	ر.س86.80	11
Dec ’23	ر.س80.10	ر.س95.72 +19.5%	11.3%	ر.س114.00	ر.س71.10	ر.س76.40	11

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2024/12/18 01:20
End of Day Share Price	2024/12/18 00:00
Earnings	2024/09/30
Annual Earnings	2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Al Rajhi Banking and Investment Corporation is covered by 26 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Jassim Al-Jubran	Aljazira Capital Company
Fahad Qureshi	Aljazira Capital Company
Hussein Mahfouz	Arqaam Capital Research Offshore S.A.L.