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Metro Bank Holdings (MTRO) Fair Value & Analysis

Financial Services · GB · Market cap 1.1B GBX

MB Metro Bank Holdings MTRO · LSE
Price£1.68
Fair Value£1.35
Upside-19.8%
Quality35/100
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Expensive Growth
Thin margins · 9.1% net margin
Low debt · negative free cash flow
Trails peers (2/12)
Narrow moat 35/100
Evidence: High Range £1.01 – £1.68 Share as image

Fair value as of: Jul 13, 2026

From 6 valuation models · updated 28 days ago

Share price +2.7% over the past month.

Below-average quality, and screening another 20% overvalued on our models.

What matters now

  • Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

£1.74 £0.2794 Fair Value £1.35 May 2021 Aug 2026

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

How to read this chart

60‑month range £0.2794 – £1.74 · fair‑value band £1.01 – £1.68 · the £1.68 price screens above the £1.35 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Metro Bank Holdings (MTRO) currently trades at £1.68, while our model-based Fair Value estimate is £1.35, implying the stock looks roughly 19.8% overvalued today. The Quality Score stands at 35/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Metro Bank Holdings generated revenue of £574M at a net margin of 9.1%. Revenue grew 70.8% year over year. It earns a return on equity of 3.9%. The balance sheet holds a net cash position of £601M. Fundamentals as of Jul 13, 2026

Our scenario range runs from £1.01 (bear case) to £1.68 (bull case); at £1.68, 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. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at -20%, MTRO screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Residual Income £1.35 £1.34 £1.23 76
Gordon GGM £0.2000 £0.3500 £0.4900 70
P/E Multiple £1.01 £1.35 £1.68 63
All 6 models by family
Dividend Discount
Gordon GGM £0.2000 £0.3500 £0.4900 70
DDM Multi-Stage £0.2000 £0.3200 £0.3800 61
Multiples
P/E Multiple £1.01 £1.35 £1.68 63
P/B Multiple £1.32 £1.76 £2.20 55
Asset-Based
NCAV (Graham) £0.9200 £1.24 £1.84 50
Economic Profit
Residual Income £1.35 £1.34 £1.23 76

Widest divergence: Multiples (£1.35) versus Dividend Discount (£0.3200). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 574M GBX
Revenue growth (YoY) +70.8%
Net margin 9.1%
Return on equity 3.9%
Free cash flow −1.1B GBX FY2025
P/E ratio 21.1
More key figures
Operating margin 10.1%
EPS (TTM) £0.0800
EPS growth (YoY) -71.3%
Net cash 601M GBX FY2025

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

Quality Score breakdown

Overall quality 35/100

Of which business quality 35 · Market factors (momentum, volatility) 77

Profitability 20
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 44
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 81
Price trend over the last 3–12 months (market factor)
52W Momentum 95
Distance to the 52-week high (market factor)
Net Issuance 36
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.

About the company

Metro Bank Holdings PLC operates as the bank holding company for Metro Bank PLC that provides business, commercial, retail and private banking products and services in the United Kingdom.

Full company description

Metro Bank Holdings PLC operates as the bank holding company for Metro Bank PLC that provides business, commercial, retail and private banking products and services in the United Kingdom. It offers personal banking products and services, including current, cash, and foreign currency accounts; savings; residential and buy-to-let mortgages; overdrafts; credit cards; and safe deposit box services. The company also provides business banking products and services comprising business bank, commercial and community current, foreign currency, and insolvency practitioner accounts; deposit accounts, such as business and community instant access deposit, business notice, client premium and flexible client term deposit, and business and community fixed term deposit accounts; and business and commercial loans and overdrafts, business loan calculators, asset based lending, asset and invoice financing, bounce back loans, business credit cards, and recovery loan schemes services. In addition, it offers private banking products and services, such as private bank, savings, foreign currency, and money management accounts; mortgages and buy-to-let; cards; and partnership loans. Further, the company provides business mobile and commercial online banking, apple pay, google pay, post office business banking, personal online banking, mobile app, Apple Pay, Google Pay, and internet banking registration services. The company was founded in 2010 and is headquartered in London, the United Kingdom. Metro Bank Holdings PLC is a subsidiary of Spaldy Investments Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Metro Bank Holdings reported revenue of £863M in FY2025 versus £393M in FY2021, a compound +21.7%/yr. Reported net income was £69.7M in FY2025.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
£863M
Latest YoY
−10.4%
Avg. growth/yr (3Y)
+21.3%
Avg. growth/yr (5Y)
+23.5%
Avg. growth/yr (13Y)
+40.0%
Revenue +21.7%/yr
FY21 £393M
FY22 £484M
FY23 £616M
FY24 £963M
FY25 £863M
Net income
FY21 −£248M
FY22 −£72.7M
FY23 £29.5M
FY24 £42.5M
FY25 £69.7M

MTRO screens 20% overvalued. Compare with PT Bank Central Asia Tbk →

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Cite: Fair Value Calculator (2026). "Metro Bank Holdings Fair Value". https://www.fairvalue-calculator.com/stock/MTRO

Peer Group

Banks - Regional · 1083 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 38 · Bottom 25%
Fair Value upside −20% · Below median
Return on equity (TTM) 4% · Bottom 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 9% · Bottom 25%
Operating margin (TTM) 10% · Bottom 25%
Revenue growth 71% · Top 25%
Debt / equity 0.48× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 21.1× · Pricier than 75% of peers
P/B 1.23× · Pricier than median
P/S (TTM) 2.67× · Cheaper than median
PEG 161.29× · Pricier than 75% of peers

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.

VALUE 7 · sector 39
FUTURE 100 · sector 44
PAST 16 · sector 41
HEALTH 76 · sector 85
DIVIDEND 0 · sector 49

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

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

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Metro Bank Holdings (MTRO) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of £1.35 versus a price of £1.68, about −20% (overvalued).
What is the fair value of MTRO?
Our model-based fair value for Metro Bank Holdings is £1.35 (as of Jul 13, 2026), built from audited fundamentals. The current price is £1.68.
What is the quality score of MTRO?
Metro Bank Holdings has a Quality Score of 35/100. 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 Metro Bank Holdings (MTRO)?
Metro Bank Holdings reported trailing-twelve-month revenue of about £574M (latest available figure, as of Jul 13, 2026).
What is the net profit margin of MTRO?
The net profit margin of Metro Bank Holdings is about 9.1%, meaning it keeps roughly 9.1% of revenue as net income. Based on the latest reported figures.

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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