Europe’s Lowest “Price to Book” Banking Stocks

The most discounted 15 largest European banks (Latribune)
According to data provided by Capital IQ, French banks display the lowest “price to book” in Europe. That is the fact. Despite the upturn in the banking sector since early October, the banking shares have never been so undervalued. In absolute terms, the value of the shares of Societe General like Credit Agricole, quoted last week below its level of March 9, 2009, corresponding to the low point reached by the European markets, six months after the collapse of Lehman Brothers. Since the beginning of the year, the Euro Stoxx Banks has made more than 35%, bringing to nearly 80% compared to the summer of 2007, when the European indices evolved to historical highs.

Royal Bank of Scotland Group plc (ADR) (NYSE:RBS)

In fact, the value of bank assets has historically not been taken into account in the share prices. Before the financial crisis of 2008, the firm AlphaValue found that the European banks listed in the stock exchange are worth 1.65 times their net asset value (price to book) .Despite the fact that the 300 billion Euros were spent on recapitalization of European banks between 2007 and 2010, the “price to book» of the Stoxx 600 banks fell to 0.6. Within three years, the collapse of Lehman Brothers on September 15, 2008, coupled with the bursting of the sovereign debt crisis in the euro area has significantly degraded the risk profile of the players in the profession. Investors have now started to integrate disaster scenarios in their calculation of banking shares.
Societe Generale, announced the elimination of dividends for 2011 as, on Tuesday, the publication of quarterly results of Societe Generale was disappointing.

Top 15 European Banks, ranked by their stock market capitalization

Institution                 Price to book ratio     Stock market capitalization
Intesa Sanpaola                           0.25                            14.6
Credit Agricole                            0.28                             12.7
Societe Generale                         0.28                             13.1
The Royal Bank of Scotland      0.33                             28.2
Barclays                                        0.42                             25
BNP ¨Paribas                               0.49                             37.1
Deutche Bank                              0.49                             25.4
Lloyds                                            0.54                             22.1
ING                                                0.56                             21.8
Banco Santander                         0.71                             48.8
BBVA                                             0.76                             29.5
UBS                                                0.79                             33.2
Credit Suisse                                0.83                             22.5
DnB NOR ASA                             0.91                             13.6
HSBC                                             0.95                             109.3

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!