4 best numbers to value BEN shares

Core Viewpoint - Bendigo and Adelaide Bank (BEN) shares are currently trading at approximately $13.06, with a potential valuation indicating they may be undervalued based on dividend growth and franking credits [1][10][12]. Company Overview - Bendigo and Adelaide Bank, commonly known as Bendigo Bank, was established through the merger of Bendigo and Adelaide Banks in November 2007, primarily operating in the retail banking sector with over 500 community branches [2]. Financial Metrics - The net interest margin (NIM) for Bendigo Bank is 1.9%, which is above the ASX average of 1.78%, indicating better profitability from lending activities [6]. - Return on equity (ROE) for Bendigo Bank is reported at 7.9%, lower than the sector average of 9.35%, suggesting less efficiency in generating profit from shareholder equity [8]. - The common equity tier one (CET1) ratio for Bendigo Bank stands at 11.3%, which is below the sector average, highlighting potential concerns regarding capital adequacy [9]. Dividend Valuation - The total dividend for the last year was $0.63, with future growth rates estimated between 2% and 4%. Using a dividend discount model (DDM), the average valuation of BEN shares is calculated at $13.32, with an adjusted valuation based on expected future dividends rising to $13.75 [10][11]. - Considering gross dividend payments, which include franking credits, the fair value projection for BEN shares increases to $19.64, indicating a significant potential upside [11]. Workplace Culture - Bendigo Bank's workplace culture rating is 2.9 out of 5, which is below the sector average of 3.1, potentially impacting employee retention and long-term financial success [4].