The Excess Returns valuation model focuses on how effectively Banco Bilbao Vizcaya Argentaria turns its equity into shareholder value above the cost of capital. This approach estimates the company\u2019s ability to generate profits beyond what investors could earn elsewhere at comparable risk, offering a practical lens for banking stocks.<\/p>\n
For BBVA, the numbers are striking. The current Book Value stands at \u20ac10.02 per share, and analysts expect a stable Earnings Per Share (EPS) of \u20ac2.10 in the future, based on weighted estimates from 16 analysts. The Cost of Equity is calculated at \u20ac1.05 per share, which means BBVA is generating an Excess Return of \u20ac1.05 per share. The average Return on Equity (ROE) is a robust 18.59%, signaling efficient use of capital. Looking ahead, the Stable Book Value is projected at \u20ac11.30 per share, supported by forecasts from 8 different analysts.<\/p>\n
Based on these projections, the Excess Returns model values BBVA’s intrinsic worth at \u20ac26.67 per share. With the current share price trading at a 29.7% discount to this value, the stock appears distinctly undervalued on this method.<\/p>\n
Result: UNDERVALUED<\/p>\n
Our Excess Returns analysis suggests Banco Bilbao Vizcaya Argentaria is undervalued by 29.7%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 919 more undervalued stocks based on cash flows<\/a>.<\/p>\n Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Banco Bilbao Vizcaya Argentaria.<\/a><\/p>\n The Price-to-Earnings (PE) ratio is a widely used and effective metric for valuing established, profitable companies like Banco Bilbao Vizcaya Argentaria. It relates a company’s share price to its per-share earnings, providing a quick benchmark for whether the stock is valued reasonably given its current profitability.<\/p>\n A company\u2019s PE ratio is influenced by expectations around earnings growth and risk. Businesses expected to grow faster or with lower perceived risk tend to command higher PE ratios, while slower growth or higher risk typically results in lower multiples. This is why context matters when judging whether a PE ratio is fair or not.<\/p>\n Currently, BBVA trades at a PE ratio of 10.77x. This is very close to both its peer average of 10.83x and the industry average of 10.44x for banks. However, Simply Wall St\u2019s proprietary “Fair Ratio,” which is a blend of key factors like expected growth, profit margins, industry dynamics, market cap, and company-specific risks, comes in at 11.90x for BBVA. This metric offers a more tailored view than a plain industry comparison because it incorporates attributes highly relevant to BBVA\u2019s long-term prospects.<\/p>\n Looking at the numbers, BBVA\u2019s actual PE is less than 0.10 away from its Fair Ratio, which suggests the stock is trading right in line with what its fundamentals warrant at the moment.<\/p>\n Result: ABOUT RIGHT<\/p>\n PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth<\/a>.<\/p>\n Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. Narratives are a powerful but simple tool that lets you connect your perspective on a company\u2019s business, risks, and opportunities with a financial forecast and then translate that story into a fair value estimate.<\/p>\n Think of a Narrative as the story behind the numbers. You define how you see Banco Bilbao Vizcaya Argentaria\u2019s future revenue, margins, and growth, then see what that means for its fair value. Narratives live on Simply Wall St\u2019s Community page, making it easy for millions of investors to share, view, and discuss their investment outlooks.<\/p>\n By using Narratives, you can compare your view of BBVA\u2019s fair value against the current share price and quickly see whether it might be time to buy, hold, or sell. What makes Narratives especially valuable is that they update automatically as new news or earnings data come in, helping you stay on top of an evolving market.<\/p>\n For example, one investor\u2019s Narrative for BBVA might forecast strong digital growth and set a fair value of \u20ac18.37 per share, while another, more cautious perspective might see challenges in emerging markets and call for a fair value of just \u20ac11.70. The tool empowers you to make decisions with real context, tailored to what you believe most likely.<\/p>\n Do you think there’s more to the story for Banco Bilbao Vizcaya Argentaria? Head over to our Community to see what others are saying!<\/a><\/p>\n 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.<\/p>\n Companies discussed in this article include BBVA.MC<\/a>.<\/p>\n Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Wondering whether Banco Bilbao Vizcaya Argentaria is a hidden gem or already fairly priced? If you’re looking to…\n","protected":false},"author":2,"featured_media":1425,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[123],"tags":[892,148,1049,2608,140],"class_list":{"0":"post-3541","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bbva","8":"tag-banco-bilbao-vizcaya","9":"tag-bbva","10":"tag-excess-returns","11":"tag-pe","12":"tag-share-price"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/3541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/comments?post=3541"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/3541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media\/1425"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media?parent=3541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/categories?post=3541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/tags?post=3541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a> BBVA Discounted Cash Flow as at Dec 2025 <\/p>\n
<\/a> BME:BBVA PE Ratio as at Dec 2025 <\/p>\n
<\/a> BME:BBVA Community Fair Values as at Dec 2025 <\/p>\n