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Nationwide Building Society, (NBS) Fair Value & Analysis

Financial Services · GB · Market cap £1.2B

NB Nationwide Building Society, NBS · LSE
Price£1.29
Fair Value£1.44
Upside+11.6%
Quality56/100
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Healthy Growth
Solidly profitable · 17.5% net margin
Moderate debt · generates free cash flow
Mixed vs. peers (5/10)
Moderate moat 57/100
Evidence: High Range £1.08 – £1.80 Share as image

Fair value as of: Jul 13, 2026

From 6 valuation models · updated 27 days ago

Fair value updated Jul 13, 2026, revised from £1.45 to £1.44 (−0.8%) since Jun 26, 2026.

A solid business, screening 12% undervalued on our models.

What matters now

  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
  • Our model range runs from £1.08 (bear) to £1.80 (bull), base £1.44. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 56/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£1.91 £1.10 Fair Value £1.44 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 £1.10 – £1.91 · fair‑value band £1.08 – £1.80 · the £1.29 price screens below the £1.44 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

Nationwide Building Society, (NBS) currently trades at £1.29, while our model-based Fair Value estimate is £1.44, implying the stock looks roughly 11.6% undervalued today. The Quality Score stands at 56/100 (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, Nationwide Building Society, generated revenue of £6.0B at a net margin of 17.5%. Revenue grew 27.9% year over year. It earns a return on equity of 5.3%. Net debt stands at £27.0B. Fundamentals as of Jul 13, 2026

Our scenario range runs from £1.08 (bear case) to £1.80 (bull case); at £1.29, the current price sits within 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 12%, NBS 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 £1,509 £1,493 £1,353 76
Gordon GGM £80.06 £144.26 £198.59 70
P/E Multiple £1,131 £1,508 £1,885 63
All 6 models by family
Dividend Discount
Gordon GGM £80.06 £144.26 £198.59 70
DDM Multi-Stage £80.06 £131.78 £154.11 61
Multiples
P/E Multiple £1,131 £1,508 £1,885 63
P/B Multiple £1,479 £1,972 £2,465 55
Asset-Based
NCAV (Graham) £1,036 £1,389 £2,073 50
Economic Profit
Residual Income £1,509 £1,493 £1,353 76

Widest divergence: Multiples (£1,508) versus Dividend Discount (£131.78). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) £6.0B
Revenue growth (YoY) +27.9%
Net margin 17.5%
Return on equity 5.3%
Free cash flow £3.5B FY2026
P/E ratio 0.0
More key figures
Operating margin 32.6%
EPS (TTM) £115.98
EPS growth (YoY) -61.9%
Net debt £27.0B FY2026

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

Quality Score breakdown

Overall quality 56/100

Of which business quality 55 · Market factors (momentum, volatility) 59

Profitability 18
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 88
Earnings quality: real cash, not paper profit
Fin. Strength 34
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 48
Distance to the 52-week high (market factor)
Net Issuance 90
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

Nationwide Building Society, together with its subsidiaries, provides retail banking products and services in the United Kingdom. The company offers current, savings, and individual savings accounts; residential mortgages; overdrafts; personal, car, wedding, debt consolidation, holiday, and home improvement loans; and credit cards.

Full company description

Nationwide Building Society, together with its subsidiaries, provides retail banking products and services in the United Kingdom. The company offers current, savings, and individual savings accounts; residential mortgages; overdrafts; personal, car, wedding, debt consolidation, holiday, and home improvement loans; and credit cards. It also provides loans to registered social landlords, and project finance initiatives. In addition, the company offers home, life, income protection, travel, mobile phone, and breakdown insurance; and investment products and services, such as financial planning services. Further, it provides treasury liquidity and derivatives services, as well as mobile, telephone, and internet banking services. The company was founded in 1846 and is headquartered in Swindon, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Nationwide Building Society, reported revenue of £17.4B in FY2026 versus £4.9B in FY2022, a compound +37.5%/yr. Reported net income was £1.1B in FY2026, compounding −4.1%/yr from FY2022.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
£17.4B
Latest YoY
+6.9%
Avg. growth/yr (3Y)
+23.6%
Avg. growth/yr (5Y)
+30.8%
Avg. growth/yr (23Y)
+12.2%
Revenue +37.5%/yr
FY22 £4.9B
FY23 £9.2B
FY24 £4.7B
FY25 £16.3B
FY26 £17.4B
Net income −4.1%/yr
FY22 £1.3B
FY23 £1.7B
FY24 £1.3B
FY25 £2.3B
FY26 £1.1B

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Cite: Fair Value Calculator (2026). "Nationwide Building Society, Fair Value". https://www.fairvalue-calculator.com/stock/NBS

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 58 · Above median
Fair Value upside +12% · Above median
Return on equity (TTM) 5% · Bottom 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 17% · Bottom 25%
Operating margin (TTM) 33% · Below median
Revenue growth 28% · Top 25%
Debt / equity 1.02× · Higher than 75% of peers

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 0.0× · Cheaper than 75% of peers
P/FCF 0.5× · Cheaper 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 49 · sector 39
FUTURE 100 · sector 44
PAST 21 · sector 41
HEALTH 49 · 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 Nationwide Building Society, (NBS) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of £1.44 versus a price of £1.29, about +12% (undervalued).
What is the fair value of NBS?
Our model-based fair value for Nationwide Building Society, is £1.44 (as of Jul 13, 2026), built from audited fundamentals. The current price is £1.29.
What is the quality score of NBS?
Nationwide Building Society, has a Quality Score of 56/100. 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 Nationwide Building Society, (NBS)?
Nationwide Building Society, reported trailing-twelve-month revenue of about £6.0B (latest available figure, as of Jul 13, 2026).
What is the net profit margin of NBS?
The net profit margin of Nationwide Building Society, is about 17.5%, meaning it keeps roughly 17.5% 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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