Valuation of Banc Sabadell in the Context of BBVA's Takeover Bid

Identifier:  TFG:10249

Handle: https://hdl.handle.net/20.500.11797/TFG10249

Authors:  Page Gallart, Alberto

Abstract:
This final degree project values Banc Sabadell as of December 31, 2025, using the Dividend Discount Model (DDM) and market comparable multiples (P/E, P/BV, and P/TBV) to determine whether shareholders acted correctly in rejecting BBVA’s hostile takeover bid. The intrinsic value obtained is 17,329 million euros. The initial offer of 12,200 million (May 2024) undervalued the bank by 29.6%, justifying its rejection. Conversely, the improved offer of 19,500 million (September 2025) exceeded the fundamental value by 12.5% and, from a strictly financial perspective, should have been accepted.