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Arbuthnot Banking Group (ARBB) Fair Value & Analysis

Financial Services · GB · Market cap 131M GBX

AB Arbuthnot Banking Group ARBB · LSE
Price£8.30
Fair Value£14.30
Upside+72.3%
Quality52/100
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Evidence: High Range £10.73 – £17.88

Fair value as of: Jun 26, 2026

From 26 valuation models · updated 18 days ago

Share price −1.8% over the past month.

Price vs Fair Value (12 months)

£10.74 £8.20 Fair Value £14.30 Jul 2025 Jul 2026

12‑month range £8.20 – £10.74 · fair‑value band £10.73 – £17.88 · the £8.30 price screens below the £14.30 fair value. As of Jun 26, 2026.

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Analysis

Arbuthnot Banking Group (ARBB) currently trades at £8.30, while our model-based Fair Value estimate is £14.30 — implying the stock looks roughly 72.3% undervalued today. We read business quality at 52/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high) — always confirm before acting.

Over the trailing twelve months, Arbuthnot Banking Group generated revenue of £171M at a net margin of 10.4%. Revenue declined 1.8% year over year. It earns a return on equity of 6.6%. The balance sheet holds a net cash position of £339M. Fundamentals as of Jun 26, 2026

Our scenario range runs from £10.73 (bear case) to £17.88 (bull case); at £8.30, the current price sits below that range. For context, the median of 10 Financial Services peers we cover trades at 31% fair-value upside — at 72%, ARBB screens cheaper than that median.

Key figures & financial health

Revenue (TTM) 171M GBX
Revenue growth (YoY) -1.8%
Net margin 10.4%
Return on equity 6.6%
Free cash flow 52.9M GBX FY2025
P/E ratio 7.4
More key figures
Operating margin 43.5%
EPS (TTM) £1.09
Dividend yield 6.4%
EPS growth (YoY) +15.4%
Net cash 339M GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

Arbuthnot Banking Group PLC, together with its subsidiaries, provides private and commercial banking products and services in the United Kingdom. The company operates through Banking, Wealth Management, RAF, ACABL, AAG, All Other Divisions, and Group Center segments. It offers private and commercial banking services, including current and deposit accounts, loans, overdrafts, guarantees, charge cards, foreign exchange, mortgage portfolio service, bespoke commercial banking services, and tailored secured lending against property investments and other assets. In addition, the company provides financial planning; investment and asset management; asset finance funding; asset-based lending; deposits; and specialist finance. In addition, the company provides commercial vehicle finance and related services; secured finance on invoices, assets, and stock; and property investment, management, and development services. Arbuthnot Banking Group PLC was founded in 1833 and is headquartered in …

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Arbuthnot Banking Group reported revenue of £304M in FY2025 versus £105M in FY2021, a compound +30.3%/yr. Reported net income was £17.8M in FY2025, compounding +27.3%/yr from FY2021.

Revenue +30.3%/yr
FY21 £105M
FY22 £160M
FY23 £178M
FY24 £230M
FY25 £304M
Net income +27.3%/yr
FY21 £6.8M
FY22 £16.5M
FY23 £35.4M
FY24 £24.9M
FY25 £17.8M

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Cite: Fair Value Calculator (2026). "Arbuthnot Banking Group Fair Value". https://www.fairvalue-calculator.com/stock/ARBB.LSE

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Frequently asked questions

Is Arbuthnot Banking Group (ARBB) undervalued?
As of Jun 26, 2026, our model estimates a fair value of £14.30 versus a price of £8.30 — about +72% (undervalued). Model-based estimate, not financial advice.
What is the fair value of ARBB?
Our model-based fair value for Arbuthnot Banking Group is £14.30 (as of Jun 26, 2026), built from audited fundamentals. The current price is £8.30.
What is the quality score of ARBB?
Arbuthnot Banking Group has a Quality Score of 52/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Arbuthnot Banking Group (ARBB)?
Arbuthnot Banking Group reported trailing-twelve-month revenue of about £171M (latest available figure, as of Jun 26, 2026).
What is the net profit margin of ARBB?
The net profit margin of Arbuthnot Banking Group is about 10.4%, meaning it keeps roughly 10.4% of revenue as net income. Based on the latest reported figures.
Does Arbuthnot Banking Group pay a dividend?
Arbuthnot Banking Group currently shows a dividend yield of about 6.42% relative to its recent price (as of Jun 26, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.