The earnings per share of Saudi Hollandi Bank for the 12-month period that ended on June 30, 2014 increased to SAR 3.53 compared with SAR 3.15 in 2013, according to Al-Riyadh newspaper.
However, the P/E ratio rose from 13.17x in 2013 to 14.45x, which is considered a ‘good’ level as it is lower than the market’s average P/E ratio of 18x. This ratio is also deemed ‘very good’ for the banking sector.
Accordingly, the current stock price at SAR 51 is fair and acceptable, especially when taking into account the P/B ratio at 2.47x and P/Intrinsic Value ratio at 2.89x which are acceptable.