AlphaMadera's AlphaVal page classifies Banco Santander, S.A. as a Banks, Insurers & Asset Managers business and values it using P/Tangible Book × ROE Quality, then compares the result to the current market price to flag SAN as undervalued, fairly valued, or overvalued.

What is Banco Santander, S.A.'s fair value?

Fair value for SAN comes from a P/Tangible Book × ROE Quality model -- the approach AlphaVal selected for this company's Banks, Insurers & Asset Managers classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value SAN?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. SAN was classified as Banks, Insurers & Asset Managers and is valued using P/Tangible Book × ROE Quality, built from SAN's most recent reported fundamentals.

SAN - Banco Santander, S.A.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $3.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 90% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Fair Value Moderate

Trading 16.9% below fair value

Current Price $12.42

Bear Case $10.00 19.5% downside ($10.00 - $12.42) / $12.42 = -19.5% ROTCE 12.3% → 1.52x TBV

Fair Value $14.94 20.3% upside ($14.94 - $12.42) / $12.42 = 20.3% ROTCE 16.4% → 2.27x TBV

Bull Case $17.90 44.1% upside ($17.90 - $12.42) / $12.42 = 44.1% ROTCE 18.9% → 2.72x TBV

Adjust Assumptions

Return on Tangible Equity

16.4%

Cost of Equity

9.5%

Key Value Driver

ROTCE (16.4%) vs. cost of equity (9.5%)

Terminal Value % of EV

Implied Market Multiple 1.88x

Market is pricing in (growth)

Plain-Language Summary

With ROTCE of 16.4% vs. 9.5% cost of equity, fair P/TBV is 2.27x on $6.59 tangible book, implying $14.94 per share.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (25 analysts) $3.00

Analyst Range $3.00 – $3.00

Divergence from AlphaVal 398%

Warnings

⚠ Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.

⚠ Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.

ℹ Wall Street's average price target is $3.00 (from 25 analysts). Our estimate is 398% above the consensus -- consider that gap carefully.

ℹ Financial statements were converted from EUR into USD using EURUSD at 1.1129 USD per EUR.

Key Risks

Book value quality matters as much as level — check loan loss reserves
Interest rate sensitivity creates non-linear earnings surprises
Insurance reserving is actuarial, not financial — errors emerge slowly