Banco de Sabadell (BME:SAB) caught the market’s attention following its Q3 2025 results, reporting improved profitability and solid asset quality. The bank also updated its guidance and shareholder remuneration plans.
See our latest analysis for Banco de Sabadell.
After strong quarterly results and the bank’s upbeat guidance, Banco de Sabadell’s recent share price has cooled a little, dipping 2% over the past day and 7.6% in the past three months. That said, its year-to-date share price return of 71% and a remarkable 82% total shareholder return over the past year tell the story of a company still enjoying impressive long-term momentum, even as short-term sentiment reflects some caution around future growth levers.
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With Sabadell’s robust returns and upgraded capital plans now in focus, the key question is whether the recent pullback leaves its shares undervalued or if the market has already accounted for its future growth prospects.
Banco de Sabadell’s widely followed narrative suggests the current share price sits below what the consensus sees as fair value, with a fair value estimate of €3.34 compared to the last close of €3.18. This modest gap puts the spotlight on the factors supporting further upside, outlined in the narrative below.
“Strong and accelerating loan growth, especially in Spanish mortgages, consumer lending (up 20%+ year-on-year), SME/corporate, public sector, and international portfolios, suggests robust underlying demand for banking services and positions the company for future revenue expansion and higher net interest income. Sustained increase in customer funds, particularly through off-balance sheet investment and savings products (up 6.7% year-on-year), demonstrates growing customer engagement and enables greater cross-selling of fee-based products. This supports long-term growth in recurring fee income and revenue diversification.”
Read the complete narrative.
Want to know how Sabadell’s long-term revenue mix and ambitious cost controls underpin this valuation? The blueprint combines rising loan demand and shifting profit margins with a profit multiple rarely seen in banks. Curious about what future projections analysts are banking on? Read the full narrative to uncover the numbers driving this fair value.
Result: Fair Value of €3.34 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.