Banco Santander stock: fundamental analysis
Stocks · SAN · Financial Services
Banco Santander, S.A. provides various financial products and services to individuals, small and medium-sized enterprises, large corporations, and public entities worldwide. The company operates through five segments: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance, and Payments. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 12.52 EUR
- Market cap: 181.7B EUR
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 13.1%: a decent return, not an exceptional one. Out of every 100 in sales, 33.5 end up as profit.
Financial health
For banks and insurers, debt is part of the business, so ratios such as net debt/EBITDA do not apply. Their strength is measured by capital (CET1 ratio) and bad loans, reported in their quarterly results.
Growth
Revenue is growing 10.2% year on year: a solid pace. Earnings are up 8.7%.
Valuation
It trades at a P/E of 14.2, in line with the 14.4 median of the financial services companies we track. On expected earnings the P/E falls to 9.9: the market expects profits to rise.
Dividend
Dividend yield of 1.9% (0.25 EUR per share per year) with a payout ratio of 25.5%.
Tools
All metrics
| Banco Santander | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 13.1% | 17.4% |
| ROA | 0.8% | 1.4% |
| Gross margin | — | 64.0% |
| Operating margin | 43.4% | 57.4% |
| Net margin | 33.5% | 34.9% |
| Financial health | ||
| Net debt/EBITDA | — | — |
| Debt/equity | — | 0.5x |
| Current ratio | — | 2.0x |
| Growth | ||
| Revenue growth | 10.2% | 13.4% |
| Earnings growth | 8.7% | 12.8% |
| Valuation | ||
| P/E ratio | 14.2x | 14.4x |
| Forward P/E | 9.9x | 11.9x |
| EV/EBITDA | — | — |
| Price/book | 1.6x | 2.2x |
| FCF yield | — | 3.4% |
| Dividend | ||
| Dividend yield | 1.9% | 3.8% |
| Payout ratio | 25.5% | 47.5% |
| Beta (volatility) | 0.9x | 0.6x |
Frequently asked questions
What is Banco Santander's P/E ratio?
Banco Santander's P/E is 14.2 based on trailing 12-month earnings and 9.9 on expected earnings. The median for its sector among the companies we track is 14.4. Data as of September 18, 2026.
What dividend does Banco Santander pay?
Dividend yield of 1.9% (0.25 EUR per share per year) with a payout ratio of 25.5%.
Is Banco Santander stock expensive?
It trades at a P/E of 14.2, in line with the 14.4 median of the financial services companies we track. On expected earnings the P/E falls to 9.9: the market expects profits to rise. This is an educational reading based on ratios, not a buy or sell recommendation.
Does Banco Santander have a lot of debt?
For banks and insurers, debt is part of the business, so ratios such as net debt/EBITDA do not apply. Their strength is measured by capital (CET1 ratio) and bad loans, reported in their quarterly results.
What is Banco Santander's market cap?
Banco Santander has a market cap of 181.7B EUR and its shares trade at 12.52 EUR, with a 52-week range of 8.10 EUR to 13.12 EUR (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.