Are BOQ shares worth considering in October?

Group 1: Company Overview - Bank of Queensland Limited's share price is currently under scrutiny as ASX investors attempt to establish a rough valuation for the company [1][2] - The company operates within a banking sector that constitutes approximately 30% of the Australian share market by market capitalization [2] Group 2: Valuation Methods - The Price-to-Earnings (PE) ratio is a key metric for valuing Bank of Queensland, with the current PE ratio calculated at 17.8x, compared to the banking sector average of 20x [5] - A sector-adjusted PE valuation for Bank of Queensland is estimated at $8.16 based on its earnings per share [5] - The Dividend Discount Model (DDM) is another valuation method used, which considers the most recent full-year dividends and assumes consistent or growing dividends over time [6][7] Group 3: DDM Valuation Insights - Using a DDM approach, the share price valuation of Bank of Queensland is calculated at $7.19, with an adjusted dividend payment leading to a valuation of $7.40 [10] - When factoring in fully franked dividends, the valuation increases to $10.57 based on a forecast gross dividend payment of $0.50 [11] Group 4: Growth and Risk Analysis - Various growth and risk rate scenarios yield different valuations, with a risk rate of 6% and a growth rate of 2% resulting in a valuation of $8.75, while a 3% growth rate at the same risk rate results in $11.67 [12] - The analysis emphasizes the importance of understanding net interest margins and regulatory challenges when assessing the company's financial health and growth potential [13]