If you are wondering whether ING Groep is still good value after such a strong run, or if you might be late to the party, this breakdown will help you consider whether the current price still stacks up against the fundamentals.
The stock has climbed to around €22.64, adding 1.3% over the last week, 2.2% over the last month, and an eye catching 49.1% year to date, with a 61.4% gain over the last year and 307.1% over five years that has clearly shifted how the market views its prospects and risks.
Recent coverage has focused on ING Groep’s ongoing share buyback programs and capital returns. These tend to support the share price by signaling confidence from management and reducing the share count over time. At the same time, commentary around European banks has highlighted improving interest margins and capital strength, both of which help explain why investors have been willing to pay more for quality lenders like ING.
Right now, ING Groep scores just 2 out of 6 on our undervaluation checks. In the next sections we will walk through the main valuation approaches behind that score, and later on we will look at a more nuanced way to think about what the market might really be pricing in.
ING Groep scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Excess Returns model looks at how much value a bank can create over and above the return that investors demand on its equity, then capitalizes those surplus profits into an intrinsic value per share.
For ING Groep, the starting point is a Book Value of €16.84 per share and a Stable Book Value estimate of €17.93 per share, based on forecasts from 9 analysts. Using weighted future Return on Equity estimates from 15 analysts, Stable EPS is put at €2.41 per share, while the Cost of Equity is €1.13 per share. That leaves an Excess Return of about €1.28 per share, supported by an average Return on Equity of 13.42%, which is comfortably above the required return.
When these excess returns are projected forward and discounted, the model arrives at an intrinsic value of around €46.29 per share. Compared with the current share price near €22.64, this framework suggests the stock is roughly 51.1% undervalued.
Result: UNDERVALUED
Our Excess Returns analysis suggests ING Groep is undervalued by 51.1%. Track this in your watchlist or portfolio, or discover 905 more undervalued stocks based on cash flows.
INGA Discounted Cash Flow as at Dec 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for ING Groep.
For profitable banks, the Price to Earnings, or PE, ratio is a useful way to judge value because it links what investors pay today with the profits the business is already generating. In broad terms, higher growth and lower risk justify a higher PE, while slower growth or greater uncertainty usually mean a lower, more cautious multiple is appropriate.
ING Groep currently trades on a PE of about 13.14x, which is above both the European Banks industry average of roughly 10.58x and the peer group average of around 10.03x. On the surface that might imply a premium valuation, but these simple comparisons do not fully reflect company specific growth prospects, profitability or risk.
Simply Wall St’s Fair Ratio for ING Groep is 12.97x, which is our estimate of what a reasonable PE should be once factors like expected earnings growth, the risk profile, profit margins, industry dynamics and market capitalization are all taken into account. Because this Fair Ratio is only slightly below the current PE, the shares look roughly in line with what those fundamentals would justify rather than clearly cheap or expensive.
Result: ABOUT RIGHT
ENXTAM:INGA PE Ratio as at Dec 2025
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. This is an approach where you combine your view of ING Groep’s story with your own assumptions for future revenue, earnings and margins, and then link that story directly to a financial forecast and a fair value estimate.
On Simply Wall St’s Community page, Narratives make this process accessible by guiding you to set a fair value and compare it to the current price. This helps you decide whether the stock looks like a buy or a sell to you, and then your view is automatically updated as new information such as earnings or major news is released.
For ING Groep, one investor might build a Narrative that leans into digital banking, infrastructure lending and fee income growth with a fair value of around €27.92. Another might be more cautious about regulation, deposits and margins and land closer to €23.28. Narratives turn both of those perspectives into clear, numbers backed roadmaps for action rather than vague opinions.
Do you think there’s more to the story for ING Groep? Head over to our Community to see what others are saying!
ENXTAM:INGA Community Fair Values as at Dec 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include INGA.AS.
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