Beta: Greek banks trading at a double-digit discount to their European counterparts

The brokerage firm notes that Greek bank stocks continue to trade at a significant discount to their European counterparts, despite their gains so far this year. Which blue-chip stocks are trading at a premium?

Beta: Greek banks trading at a double-digit discount to their European counterparts

This article is an AI translation of an original piece published in Greek. Read original

 

Despite the strong rally in bank stocks on the Athens Stock Exchange, Greek systemic banks continue to trade at a significant discount to their European peers, according to a new analysis by Beta Securities, which examines valuations for the 2026–2028 period based on market data as of June 4.

Specifically, the four systemic banks are trading at a weighted P/E ratio of 9.6 times for 2026, compared to 10.7 times for European banks, which translates to an 11% discount.

The largest discount is seen in Alpha Bank (-17%), followed by Eurobank (-14%) and Piraeus Bank (-13%), while National Bank of Greece trades just 2% below the European average.

At the same time, Greek banks are showing strong stock market momentum, with an average return of 15.48% since the beginning of the year. Piraeus Bank leads the pack with a 29.47% increase, followed by Eurobank at 13.99%, National Bank of Greece at 12.96%, and Alpha Bank at 3.94%.

The picture of undervaluation is even more pronounced based on the price-to-tangible book value (P/TBV) ratio. The sector trades at an average of 1.4x, compared to 2.0x for European banks, representing a 32% discount. Alpha Bank has the largest discount (-48%), followed by Piraeus (-31%), Eurobank (-28%), and National Bank (-25%).

The picture of discounts is not limited to banks. In telecommunications, OTE is trading at a 31% discount compared to its European competitors and offers a dividend yield of 5.39% for 2026, higher than the European average.

In the refining sector, HELLENiQ Energy and Motor Oil are trading at an average discount of 21%, with the latter showing a 30% discount. The sector as a whole offers a dividend yield of 5.29% and a return of 25.04% year-to-date.

Aegean Airlines is trading at a 17% discount compared to European airlines, while offering an impressive dividend yield of 7.49%. Similarly, Athens International Airport (AIA) is trading at a 9% discount and has a dividend yield of 6.36%.

In construction and industry, Titan is trading at a 45% discount to the international cement sector, while Cenergy Holdings is trading at a 19% discount, having also seen an explosive 67.1% rise since the start of the year.

In the retail sector, Jumbo stands out with a 39% discount relative to its international peers and a dividend yield of 5.09%, while PPC is trading at a 15% discount relative to European utility companies.

On the other hand, there are also Greek stocks trading at a premium. Allwyn is valued 74% higher than European gaming companies, Lamda Development 57% higher than European real estate companies, Kri Kri is 36% higher than the international food and dairy sector, and Coca-Cola HBC is 10% higher than the global beverage sector.

According to Beta Securities, the overall picture suggests that, despite the significant rise in prices and the improvement in fundamentals, a large portion of the Greek market continues to trade at significant discounts relative to its international competitors, with banks remaining the focus of investor interest due to a combination of strong profitability, high yields, and attractive valuations.

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