Al Rajhi Banking and Investment Corporation

SASE:1120 Stock Report

Market Cap: ر.س357.2b

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 (SAR91.5) is trading above our estimate of fair value (SAR31.07)

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 Ratio20.8x
Earningsر.س17.50b
Market Capر.س357.20b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.1x
1180 Saudi National Bank
9.9x7.7%ر.س197.1b
1010 Riyad Bank
9x4.8%ر.س78.5b
1150 Alinma Bank
12.9x10.6%ر.س68.6b
1060 Saudi Awwal Bank
8.6x6.6%ر.س65.1b
1120 Al Rajhi Banking and Investment
20.9x14.2%ر.س366.0b

Price-To-Earnings vs Peers: 1120 is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (10.1x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1120 20.8xIndustry Avg. 8.6xNo. of Companies77PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1120 is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the Asian Banks industry average (8.6x).

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 Ratio20.8x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: 1120 is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).

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 1120 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentر.س91.50
ر.س95.94
+4.9%
11.1%ر.س116.00ر.س77.30n/a17
Nov ’25ر.س88.00
ر.س93.45
+6.2%
10.6%ر.س107.00ر.س73.50n/a17
Oct ’25ر.س87.40
ر.س90.55
+3.6%
11.1%ر.س111.00ر.س73.50n/a17
Sep ’25ر.س88.80
ر.س89.35
+0.6%
9.3%ر.س106.00ر.س73.50n/a17
Aug ’25ر.س85.00
ر.س86.43
+1.7%
10.1%ر.س102.00ر.س66.73n/a17
Jul ’25ر.س80.00
ر.س86.43
+8.0%
10.1%ر.س102.00ر.س66.70n/a17
Jun ’25ر.س76.10
ر.س86.43
+13.6%
10.1%ر.س102.00ر.س66.70n/a17
May ’25ر.س79.90
ر.س87.65
+9.7%
10.6%ر.س103.00ر.س68.00n/a17
Apr ’25ر.س81.50
ر.س86.93
+6.7%
10.6%ر.س103.00ر.س68.00n/a15
Mar ’25ر.س89.00
ر.س85.07
-4.4%
11.9%ر.س103.00ر.س66.70n/a14
Feb ’25ر.س86.00
ر.س82.36
-4.2%
10.6%ر.س98.00ر.س65.70n/a14
Jan ’25ر.س86.80
ر.س78.08
-10.0%
11.4%ر.س92.00ر.س62.00n/a13
Dec ’24ر.س76.40
ر.س75.75
-0.9%
10.0%ر.س85.70ر.س62.00n/a12
Nov ’24ر.س69.90
ر.س73.65
+5.4%
12.5%ر.س85.70ر.س56.60ر.س88.0012
Oct ’24ر.س67.70
ر.س76.39
+12.8%
12.8%ر.س91.00ر.س59.20ر.س87.4012
Sep ’24ر.س72.20
ر.س77.23
+7.0%
11.1%ر.س91.00ر.س62.40ر.س88.8013
Aug ’24ر.س73.90
ر.س79.12
+7.1%
11.8%ر.س95.00ر.س62.40ر.س85.0013
Jul ’24n/a
ر.س81.89
0%
10.7%ر.س95.00ر.س62.40ر.س80.0013
Jun ’24ر.س72.30
ر.س82.25
+13.8%
10.1%ر.س95.00ر.س65.00ر.س76.1013
May ’24ر.س76.10
ر.س83.47
+9.7%
10.3%ر.س100.00ر.س65.00ر.س79.9013
Apr ’24ر.س73.50
ر.س84.74
+15.3%
10.7%ر.س100.00ر.س65.00ر.س81.5012
Mar ’24ر.س72.10
ر.س86.45
+19.9%
10.1%ر.س100.00ر.س67.00ر.س89.0011
Feb ’24ر.س81.10
ر.س91.48
+12.8%
12.5%ر.س114.00ر.س67.00ر.س86.0011
Jan ’24ر.س75.50
ر.س93.65
+24.0%
12.8%ر.س114.00ر.س67.00ر.س86.8011
Dec ’23ر.س80.10
ر.س95.72
+19.5%
11.3%ر.س114.00ر.س71.10ر.س76.4011
Nov ’23ر.س85.00
ر.س96.13
+13.1%
13.0%ر.س120.00ر.س71.10ر.س69.9011

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

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