ING Groep: Big Shareholder Yield, Sluggish EPS Growth, Downbeat P/E
- I maintain a buy rating on ING Groep due to its undervaluation, despite technical risks and modest earnings growth expectations.
- ING's Q3 2024 performance showed strong ROE, CET1 ratio, and a 17% shareholder return, with a forward dividend yield of 7.8%.
- The bank's revenue and EPS growth are forecasted to be modest, justifying a low P/E multiple, but shares trade below book value.
- Key risks include sluggish Euro Area growth, unfavorable interest rates, and potential global macroeconomic slowdown impacting ING's outlook.
Magdalena Wygralak/iStock Editorial via Getty Images
Goldman Sachs' 2025 Euro Area outlook calls for muted returns across the region's stock markets. While valuations across the 11 sectors are significantly cheaper than P/E multiples in the US, earnings growth expectations are tepid at best. Toss
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