Standard Bank Group (SBK.JO)
Financials · JSE · South Africa
Fundamentals
Valuation and ratings
Standard Bank Group trades at R323.52, close to the R275.00 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 68 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 10.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Standard Bank Group
Standard Bank Group Limited provides financial products and services in South Africa and internationally. It offers a range of onshore and offshore savings and investment; home and personal loans; forex solutions; transactional banking, including digital wallets, cards, payment and transfer platforms; private and digital banking; forex solutions; vehicle and asset finance; credit cards; and insurance solutions. The company also provides transactional banking; business lending; commercial asset finance; merchant, trade, fleet, and business solar solutions; specific solutions for clients in various sectors, such as agriculture, manufacturing, healthcare, and tourism; app and internet banking; international payments and forex; alternative funding options; and business resources and insurance. In addition, it offers advisory, transactional, trading, risk management, and funding solutions; and long and short-term insurance, health insurance, and asset management. Further, the company engages in trust or other fiduciary activities. The company was founded in 1862 and is headquartered in Johannesburg, South Africa.
SBK.JO passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Standard Bank Group (SBK.JO) undervalued?
Against our discounted cash flow estimate of R275.00, SBK.JO at R323.52 is 15% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is SBK.JO's P/E ratio?
SBK.JO trades at 10.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for SBK.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.