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Al Rajhi Bank (1120) Fair Value & Analysis

Financial Services · SA · Market cap 376B SAR (≈ $100B) · ISIN SA0007879113

What is Al Rajhi Bank really worth?

AR Al Rajhi Bank 1120 · SR
Price66.35 SAR
Fair Value43.51 SAR
Upside−34.4%
Quality45/100

Below-average quality, and trading another 52% above our fair value of 43.51 SAR.

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Strengths

Highly profitable · 68.0% net margin
Ranks above peers (8/12)
Wide moat 77/100

Risks

!Expensive Growth (revenue 5y +28.3 %/yr)
!negative free cash flow

For context

·1.76% dividend yield
Evidence: High Range 32.63 SAR – 54.38 SAR

Fair value as of: Aug 13, 2026

From 6 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from 53.72 SAR to 43.51 SAR (−19.0%) since Jul 30, 2026. Share price +6.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (54.38 SAR). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

72.14 SAR 18.27 SAR Fair Value 43.51 SAR Feb 2020 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 18.27 SAR – 72.14 SAR · fair‑value band 32.63 SAR – 54.38 SAR · the 66.35 SAR price screens above the 43.51 SAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Al Rajhi Bank (1120) currently trades at 66.35 SAR, while our model-based Fair Value estimate is 43.51 SAR, implying the stock looks roughly 52.5% overvalued today. The Quality Score stands at 45/100 (below-average quality), in the Financial Services sector. Bull case: the Economic Profit group reads highest at a median of 37.13 SAR per share, and 0 of the 6 models we run sit above the 66.35 SAR price. Bear case: the Asset-Based group reads lowest at 15.94 SAR, and 6 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Al Rajhi Bank generated revenue of 39.0B SAR at a net margin of 68.0%. Revenue grew 11.1% year over year. It earns a return on equity of 18.5%. The balance sheet holds a net cash position of 1.2B SAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from 32.63 SAR (bear case) to 54.38 SAR (bull case); at 66.35 SAR, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at −34%, 1120 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly 1.93 SAR per share, which is 4.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
DDM Multi-Stage 14.17 SAR 25.34 SAR 32.24 SAR 66
Gordon GGM 14.17 SAR 30.94 SAR 52.06 SAR 65
Residual Income 28.37 SAR 37.13 SAR 131.02 SAR 64
All 6 models by family
Dividend Discount
Gordon GGM 14.17 SAR 30.94 SAR 52.06 SAR 65
DDM Multi-Stage 14.17 SAR 25.34 SAR 32.24 SAR 66
Multiples
P/E Multiple 40.29 SAR 53.72 SAR 67.14 SAR 63
P/B Multiple 24.98 SAR 33.31 SAR 41.64 SAR 55
Asset-Based
NCAV (Graham) 11.90 SAR 15.94 SAR 23.79 SAR 51
Economic Profit
Residual Income 28.37 SAR 37.13 SAR 131.02 SAR 64

Widest divergence: Economic Profit (37.13 SAR) versus Asset-Based (15.94 SAR). Highest evidence: DDM Multi-Stage (66).

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Key figures & financial health

P/E ratio 16.5
P/S ratio 5.70 P/E × margin
EPS (TTM) 4.02 SAR price ÷ EPS = P/E 16.5
Dividend yield 1.8% payout 29.0%
Net margin 34.5% FY2025
Return on equity 18.5% TTM
More key figures
Profitability
Return on assets (EBIT) 2.5% avg 5y
Operating margin 76.1% TTM
Growth
Revenue (TTM) 39.0B SAR TTM
Revenue growth (YoY) +11.1% 3y avg +36.0%
EPS growth (YoY) +23.5%
Balance sheet & cash flow
Free cash flow −25.9B SAR FY2025
Net cash 1.2B SAR FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 37 · Market factors (momentum, volatility) 57

Profitability 41
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 26
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Al Rajhi Banking and Investment Corporation, together with its subsidiaries, provides banking and investment services in the Kingdom of Saudi Arabia and internationally. The company operates through four segments: Retail; Corporate; Treasury; and Investment Services, Brokerage, and Other.

Full company description

Al Rajhi Banking and Investment Corporation, together with its subsidiaries, provides banking and investment services in the Kingdom of Saudi Arabia and internationally. The company operates through four segments: Retail; Corporate; Treasury; and Investment Services, Brokerage, and Other. It offers current, dependent, hassad, family, future, million, and smart saving accounts; personal, auto, real estate, fleet, payroll, POS finance, e- commerce, contract, equipment, and invoice financing; credit, prepaid, charge credit, cashback, business, corporate, and miles cards; motor, travel, saving and protection programs, family protection, home, single premium, medical malpractice, domestic helper, visit visa, cyber, private pension plan, and employee fidelity, engineering, premium medical, marine, medical, cash in transit, liability, machinery breakdown, and property insurances; and cash management services. The company also provides ATM facilities; and investments of individuals and corporates in mutual funds, local and international share trading services, investment portfolios, and others. In addition, it offers letter of guarantee, documentary collection, supply chain finance, and letter of credit services. Al Rajhi Banking and Investment Corporation was founded in 1957 and is headquartered in Riyadh, the Kingdom of Saudi Arabia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Al Rajhi Bank reported revenue of 71.8B SAR in FY2025 versus 25.6B SAR in FY2021, a compound +29.4%/yr. Reported net income was 24.8B SAR in FY2025, compounding +13.9%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
71.8B SAR
Latest YoY
+125.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+36.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+28.3%
Avg. revenue growth/yr (19Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+20.3% (18.5 + 1.8)
Revenue +29.4%/yr
FY21 25.6B SAR
FY22 28.6B SAR
FY23 27.4B SAR
FY24 31.9B SAR
FY25 71.8B SAR
Net income +13.9%/yr
FY21 14.7B SAR
FY22 17.2B SAR
FY23 16.6B SAR
FY24 19.7B SAR
FY25 24.8B SAR
Character of growth · EPS growth decomposed (2014-2025) +12.0 % p.a.
Revenue per share +13.3 %

of which total revenue +13.3 % · buybacks/dilution +0.0 %

EBIT margin +0.3 %
Tax rate −1.2 %
Residual (interest, one-offs) −0.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

1120 screens 52% overvalued. Compare with DBS Group →

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Cite: Fair Value Calculator (2026). "Al Rajhi Bank Fair Value". https://www.fairvalue-calculator.com/stock/1120

Peer Group

Banks - Regional · 1071 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Bottom 25%
Fair Value upside −34% · Bottom 25%
Return on equity (TTM) 19% · Top 25%
Return on assets 3% · Top 25%
Net margin (TTM) 68% · Top 25%
Operating margin (TTM) 76% · Top 25%
Revenue growth 11% · Above median
Dividend yield (TTM) 1.8% · Below median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 16.5× · Pricier than 75% of peers
P/B 0.70× · Cheaper than 75% of peers
P/S (TTM) 2.57× · Cheaper than median
EV/EBITDA 0.6× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 33
FUTURE56 · sector 45
PAST74 · sector 41
HEALTH0 · sector 85
DIVIDEND35 · sector 51

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.17 $24.12 +4%
BNP Paribas SA BNP €102.56 €144.64 +41%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,443 ₹835.21 −42%
Oversea-Chinese Banking Corporation O39 31.07 SGD 19.80 SGD −36%
CaixaBank, S.A CABK €13.52 €8.85 −35%

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Frequently asked questions

Is Al Rajhi Bank (1120) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 43.51 SAR versus a price of 66.35 SAR, about −34% upside (overvalued).
What is the fair value of 1120?
Our model-based fair value for Al Rajhi Bank is 43.51 SAR (as of Aug 13, 2026), built from audited fundamentals. The current price: 66.35 SAR.
What is the quality score of 1120?
Al Rajhi Bank has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Al Rajhi Bank (1120)?
Al Rajhi Bank reported trailing-twelve-month revenue of about 39.0B SAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1120?
The net profit margin of Al Rajhi Bank is about 68.0%, meaning it keeps roughly 68.0% of revenue as net income. Based on the latest reported figures.
Does Al Rajhi Bank pay a dividend?
Al Rajhi Bank currently shows a dividend yield of about 1.76% relative to its recent price (as of Aug 13, 2026).
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