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Data-driven stock valuation

Al Rajhi Bank (1120) fair value: what the stock is really worth

As of Oct 22, 2026: fair value (intrinsic value) of Al Rajhi Bank stock SAR 36.95, price SAR 59.80, upside -38.2%, quality 44 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? No
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Financial Services · SA · ISIN SA0007879113

AR Al Rajhi Bank logo Broad data Oct 22, 2026

Al Rajhi Bank

1120 · SR

Weakest SetupStrongly overvalued and low quality.

Our calculation puts a fair price 38% below what the stock costs today.

Highly profitable · 68.0% net margin (TTM)
Wide moat 70/100
Broad data
Quality 44/100
Expensive Growth (revenue 5y +28.3 %/yr in SAR)
3.6% dividend yield · Watch coverage
Mixed vs. peers (7/12)
Fair value 36.95 SAR · Strongly overvalued (−38.2%)
Negative free cash flow
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

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

Price vs Fair Value

71.09 SAR 19.04 SAR Fair Value 36.95 SAR Apr 2020 Oct 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 22, 2026.

How to read this chart

60‑month range 19.04 SAR – 71.09 SAR · fair‑value band 28.11 SAR – 54.38 SAR · the 59.80 SAR price screens above the 36.95 SAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 22, 2026.

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Company profile

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.

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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.

Stock analysis

Al Rajhi Bank (1120) currently trades at 59.80 SAR, while our model-based Fair Value estimate is 36.95 SAR, 38.2% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Economic Profit group reads highest at a median of 36.95 SAR per share, and 0 of the 6 models we run sit above the 59.80 SAR price.

Bear case: the Asset-Based group reads lowest at 15.94 SAR, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.

Scenario range: 28.11 SAR (bear) to 54.38 SAR (bull), the price of 59.80 SAR sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 44/100 (below-average quality), in the Financial Services sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

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.

Key figures

Market cap 361B SAR (≈ $96.3B) Large · P/E ratio 14.4 · P/S ratio 9.26 · EPS (TTM) 4.16 SAR · Dividend yield 3.6% · Net margin 68.0% · Return on equity 18.5% · Return on assets (EBIT) 2.5%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 70 out of 100 (medium confidence).

What moves the price

The share trades about 16% below its 52-week high and at its 52-week low, currently below its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at −31% fair-value upside, at −38%, 1120 screens richer than that median.

Fair Value models

Bear 28.11 SAR Fair Value 36.95 SAR Bull 54.38 SAR
Price 59.80 SAR · Upside -38.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (1.60 SAR per share) are deliberately not added. 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income 28.11 SAR 36.95 SAR 62.71 SAR 73
DDM Multi-Stage 14.09 SAR 25.15 SAR 31.91 SAR 66
Gordon GGM 14.09 SAR 30.59 SAR 51.08 SAR 65
All 6 models by family
Dividend Discount
Gordon GGM 14.09 SAR 30.59 SAR 51.08 SAR 65
DDM Multi-Stage 14.09 SAR 25.15 SAR 31.91 SAR 66
Multiples
P/E Multiple 40.29 SAR 53.72 SAR 67.14 SAR 63
P/B Multiple 24.97 SAR 33.30 SAR 41.62 SAR 55
Asset-Based
NCAV (Graham) 11.89 SAR 15.94 SAR 23.78 SAR 51
Economic Profit
Residual Income 28.11 SAR 36.95 SAR 62.71 SAR 73

Open the full fair value analysis →

Quality Score breakdown

Overall quality 44/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 41
How much profit the company makes from its sales and capital
Quality Growth 44
Are margins and returns getting better?
Cashflow 0
Do the profits arrive as real cash?
Financial strength 26
Debt, balance sheet and risk of trouble
Investment 55
Does it invest with discipline instead of growing at any price?
Low Volatility 89
How calm the share price moves, does not count
Momentum 35
Price trend of the last 3 to 12 months, does not count
Near the 52-week high 24
Distance to the 52-week high, does not count
New shares 82
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+125.1%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+36.0%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+28.3%
Start year 2020 (pandemic). Over 10 years: +18.0% a year
Revenue growth 19 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+10.6%
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+22.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+18.5%
Dividend (yield on the price)3.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.18.5% vs 13.3%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.57% → 39%
Pace: the 5-year rate starts in 2020 (pandemic)

1120 screens overvalued: fair value 38% below the price. Compare with DBS Group →

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Peer Groupⓘ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.Banks - Regional · 1053 stocks

Beats the industry median on 7/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 44 · Bottom 25%
Fair Value upside −38.6% · Bottom 25%
Profitability
Return on equity (12 months) 18.5% · Top 25%
Return on assets 2.4% · Top 25%
Net margin (12 months) 68.0% · Top 25%
Operating margin (12 months) 76.1% · Top 25%
Growth and dividend
Revenue growth (quarter YoY) 11.1% · Above median
Dividend yield (12 months) 3.6% · Above median

Valuation Multiplesvs Banks - Regional median · lower = cheaper

P/E (12 months) 14.4× · Pricier than median
P/B 2.53× · Priciest 25%
P/S (12 months) 9.26× · Priciest 25%
EV/EBITDA 9.4× · Cheaper than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 13
FUTURE (revenue growth)56 · sector 49
PAST (return on equity)74 · sector 41
HEALTH (low debt)0 · sector 85
DIVIDEND (yield)72 · sector 52

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

Context: sector, industry, market

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.

Stock Price Fair Value vs Fair Value Compare
China Merchants Bank Co 600036 ¥42.52 ¥52.73 +24% vs 1120
BNP Paribas SA BNP €86.95 €106.06 +22% vs 1120
UniCredit S.p.A UCG €75.21 €77.12 +3% vs 1120
Itaú Unibanco Holding ITUB $9.70 $7.47 −23% vs 1120
Mizuho Financial Group MFG $9.83 $6.83 −31% vs 1120
Oversea-Chinese Banking Corporation O39 29.14 SGD 19.78 SGD −32% vs 1120
Intesa Sanpaolo S.p.A ISP €6.07 €4.06 −33% vs 1120
HDFC Bank Limited HDFCBANK ₹712.00 ₹406.39 −43% vs 1120
DBS Group D05 74.43 SGD 40.39 SGD −46% vs 1120
ICICI Bank Limited ICICIBANK ₹1,385 ₹615.63 −56% vs 1120

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Al Rajhi Bank · Fair Value
36.95 SAR −38%Fair Value
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Cite: Fair Value Calculator (2026). "Al Rajhi Bank Fair Value". https://www.fairvalue-calculator.com/stock/1120

Frequently asked questions

Is Al Rajhi Bank (1120) overvalued or undervalued?
As of Oct 22, 2026, our model estimates a fair value of 36.95 SAR versus a price of 59.80 SAR, about −38% upside (overvalued).
What is the fair value of 1120?
Our model-based fair value for Al Rajhi Bank is 36.95 SAR (as of Oct 22, 2026), built from audited fundamentals. The current price: 59.80 SAR.
What is the quality score of 1120?
Al Rajhi Bank has a Quality Score of 44/100. 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 price target for Al Rajhi Bank (1120)?
Our model-based price target is the fair value of 36.95 SAR (as of Oct 22, 2026) from 6 valuation models. Cautious scenario 28.11 SAR, optimistic scenario 54.38 SAR. It is a calculation from audited fundamentals, not an analyst target.
What is the Al Rajhi Bank stock forecast for 2026?
Our models put fair value at 36.95 SAR, about −38% upside versus a price of 59.80 SAR (overvalued). Cautious scenario 28.11 SAR, optimistic scenario 54.38 SAR. The calculation is refreshed regularly with new filings.
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 Oct 22, 2026).
Does Al Rajhi Bank pay a dividend?
Al Rajhi Bank currently shows a dividend yield of 3.64% relative to its recent price (as of Oct 22, 2026).
What is the intrinsic value of Al Rajhi Bank (1120)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Al Rajhi Bank it is 36.95 SAR per share (as of Oct 22, 2026), against a price of 59.80 SAR. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Al Rajhi Bank stock overvalued or undervalued in 2026?
As of Oct 22, 2026, 1120 trades above its calculated fair value: price 59.80 SAR, fair value 36.95 SAR, a gap of about −38% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 1120?
No. The price is what the market pays today (59.80 SAR); the fair value is what the company's own numbers justify (36.95 SAR). For Al Rajhi Bank the two are 22.85 SAR per share apart. That gap is exactly why we show both numbers side by side.
How much is Al Rajhi Bank worth?
The market values Al Rajhi Bank at about 361B SAR (market capitalisation, as of Oct 22, 2026). Per share that is 59.80 SAR; our models calculate a fair value of 36.95 SAR per share.
What do the bullish and bearish scenarios say about 1120?
Our models span a range for Al Rajhi Bank: cautious scenario 28.11 SAR, base 36.95 SAR, optimistic 54.38 SAR per share (as of Oct 22, 2026, price 59.80 SAR). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 1120?
Al Rajhi Bank trades at a price-to-earnings ratio of 14.4 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 36.95 SAR is built from several models across several years. Other multiples: P/B 2.5, P/S 9.3, EV/EBITDA 9.4.
How solid is the balance sheet of Al Rajhi Bank (1120)?
Balance-sheet figures for Al Rajhi Bank (as of Oct 22, 2026): return on equity 18.5%. They feed the Quality Score of 44/100, which measures business quality independently of the share price.
How far is 1120 from its 52-week high?
Al Rajhi Bank trades at 59.80 SAR, about 16% below its 52-week high of 71.09 SAR and at the low of 59.80 SAR (as of Oct 22, 2026). Distance from the high says nothing about value: that is what the fair value of 36.95 SAR is for.
Which stocks are comparable to Al Rajhi Bank?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, UniCredit S.p.A, Intesa Sanpaolo S.p.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Al Rajhi Bank stock attractive at the current price?
The data as of Oct 22, 2026: price 59.80 SAR, calculated fair value 36.95 SAR (−38%), Quality Score 44/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 1120 calculated?
We run Al Rajhi Bank through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 36.95 SAR, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.6 % above its aggregate fair value. Al Rajhi Bank itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Al Rajhi Bank (1120)?
The closing price on Oct 22, 2026 was 59.80 SAR. Our model-based fair value is 36.95 SAR, about −38% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Al Rajhi Bank right now?
The price sits above even our optimistic bull case (54.38 SAR). The favourable scenario is already priced in. Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts. A fairly wide model range (28.11 SAR to 54.38 SAR) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Al Rajhi Bank (1120) come from?
Earnings per share at Al Rajhi Bank grew +12.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +13.3 %, EBIT margin +0.3 %, tax rate −1.2 %, residual (interest, one-offs) −0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of Al Rajhi Bank

How large is the market capitalisation of Al Rajhi Bank (1120)?
The market capitalisation of Al Rajhi Bank is 361B SAR (≈ $96.3B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Al Rajhi Bank (1120)?
The price-to-sales ratio of Al Rajhi Bank is 9.26 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Al Rajhi Bank (1120)?
Earnings per share at Al Rajhi Bank are 4.16 SAR (price ÷ EPS = P/E 14.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Al Rajhi Bank (1120)?
The dividend yield of Al Rajhi Bank is 3.6% (payout 52.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Al Rajhi Bank (1120)?
The net margin of Al Rajhi Bank is 68.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Al Rajhi Bank (1120)?
The return on equity (ROE) of Al Rajhi Bank is 18.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Al Rajhi Bank (1120)?
On an EBIT basis the return on assets of Al Rajhi Bank is 2.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Al Rajhi Bank (1120)?
The operating margin of Al Rajhi Bank is 76.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Al Rajhi Bank (1120)?
Revenue at Al Rajhi Bank is growing +11.1% versus a year earlier (3y avg +36.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Al Rajhi Bank (1120)?
Earnings per share at Al Rajhi Bank are growing +14.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Al Rajhi Bank (1120) generate?
The free cash flow of Al Rajhi Bank is −25.9B SAR (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does Al Rajhi Bank (1120) hold?
Al Rajhi Bank holds more cash than debt, 1.2B SAR net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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