ING Groep N.V. (ING)
Valuation Overview•Is ING Groep N.V. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 47/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
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Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is cautious, forecasting potential downside with steady expected earnings growth. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
ING demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company demonstrates solid revenue growth (6.8% 3Y CAGR) paired with highly explosive earnings growth (28.0% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 24.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $23.1B | +2.3% | +6.8% | +5.2% | -7.5% | |
| EBITDA | $2.9B | — | +13.8% | — | — | |
| Net Income | $1.9B | -1.0% | +19.9% | — | +4.7% | |
| EPS (Diluted) | $0.67 | +28.5% | +28.0% | +27.1% | +7.4% | |
| Free Cash Flow | $0.00 | +100.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 96.8% | 54.7% | 56.8% | 51.6% |
| Operating Margin | 24.3% | 23.8% | 22.8% | 19.8% |
| Net Margin | 16.5% | 16.5% | 15.8% | 13.7% |
| FCF Margin | — | -27.1% | -36.6% | 33.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $0.75 | $0.79 | +5.3% | ||
| Q2'26 | $0.60 | $0.63 | +5.0% | ||
| Q1'26 | $0.50 | $0.56 | +12.0% | ||
| Q4'25 | $0.64 | $0.70 | +9.4% | ||
| Q3'25 | $0.59 | $0.64 | +8.5% | ||
| Q2'25 | $0.56 | $0.49 | -12.5% | ||
| Q1'25 | $0.41 | $0.39 | -4.9% | ||
| Q4'24 | $0.30 | $0.65 | +114.2% |
Total return is +47.4% (1Y), outperforming the benchmark by +31.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +31.8% | +19.4% | — |
| 1Y | +47.4% | +31.7% | +7.7% |
| 3YCAGR | +45.6% | +25.5% | +34.7% |
| 5YCAGR | +25.2% | +14.6% | +49.2% |
| 10YCAGR | +13.9% | +0.4% | — |
The S&P 500 is at 31.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about ING Groep N.V. (ING) valuation, health, and returns.
ING Groep N.V. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -25.4% downside from DCF intrinsic value of $27.15)
ING Groep N.V. has multiple valuation anchors: DCF Intrinsic Value: $27.15 | Peer Relative Fair Value: $33.20 | Wall Street Analyst Target: $22.50 (implying -37.4% upside). A convergence of these signals offers higher conviction.
ING Groep N.V. displays fair financial health with a composite quality score of 47/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 3.1%.
ING Groep N.V. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
ING Groep N.V.'s current growth trajectory is Decelerating. The company achieved +2.3% 1Y revenue growth and +28.5% 1Y EPS growth, compared to its 3Y revenue CAGR of +6.8%.
Wall Street consensus is Buy based on 17 analysts, beating EPS expectations in 75% of recent quarters with a 5-quarter streak. The consensus price target represents a -37.4% change from current levels.
Investment risks for ING Groep N.V. include: -19.9% 1-year max drawdown. Volatility risk is characterized by a beta of 1.25x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.