Yahoo Finance ABN AMRO Group N.V. (AMS:ABN): What Does The Future Look Like?
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ABN AMRO Group N.V.'s (AMS:ABN) most recent earnings update in December 2018 indicated that the business endured a major headwind with earnings declining by -19%. Below, I've laid out key numbers on how market analysts view ABN AMRO Group's earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
See our latest analysis for ABN AMRO Group
Market analysts' consensus outlook for the upcoming year seems pessimistic, with earnings reducing by -0.3%. But in the following year, there is a complete contrast in performance, with arriving at double digit 1.5% compared to today’s level and continues to increase to €2.4b in 2022.
Although it’s useful to understand the growth rate year by year relative to today’s value, it may be more insightful estimating the rate at which the company is rising or falling on average every year. The advantage of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of ABN AMRO Group's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 2.6%. This means that, we can expect ABN AMRO Group will grow its earnings by 2.6% every year for the next few years.
Next Steps:
For ABN AMRO Group, I've put together three relevant factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is ABN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ABN is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ABN? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
