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Swissquote Group Holding (SWX:SQN) Could Be 15% Undervalued Following Goldman Upgrade

Simply Wall St · 2d ago

Swissquote Group Holding (SWX:SQN) drew fresh attention after Goldman Sachs upgraded the stock to buy from neutral, citing stronger earnings potential in securities trading, foreign exchange and net interest income.

See our latest analysis for Swissquote Group Holding.

That upgrade comes after a sharp short term rebound in Swissquote Group Holding, with a 1 month share price return of 16.21% and a 3 year total shareholder return of 139.29%, although the 1 year total shareholder return is still down 18.31%.

If this move has you thinking about what else is moving, it could be a good time to scan other financial platforms through the 107 top founder-led companies

After a 16% rebound in a month and fresh support from Goldman Sachs, Swissquote Group Holding is no longer flying under the radar. Is this a moment to pay up for the story, or a time to wait for a cleaner entry on valuation?

Most Popular Narrative: 14.8% Undervalued

Compared with Swissquote Group Holding's last close at CHF43.30, the most followed narrative points to a higher fair value anchored at CHF50.82, and builds a detailed case around earnings power and valuation multiples.

Analysts are assuming Swissquote Group Holding's revenue will grow by 6.9% annually over the next 3 years. Analysts expect earnings to reach CHF 435.3 million (and earnings per share of CHF 2.9) by about July 2029, up from CHF 366.4 million today. However, there is some disagreement amongst the analysts with the more bullish ones expecting earnings as high as CHF505.0 million.

Read the complete narrative.

Want to see what kind of revenue path, margin profile and future P/E multiple need to line up to support that valuation gap? The narrative spells out the growth runway, the expected earnings step up, and the premium multiple required to get from today's price to that fair value.

Result: Fair Value of CHF50.82 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still clear risks to the Swissquote Group Holding narrative, including pressure on net interest income and tighter eForex competition, which could cap revenue and margins.

Find out about the key risks to this Swissquote Group Holding narrative.

Another View: What Multiples Say About Swissquote Group Holding

The SWS DCF model points to Swissquote Group Holding trading below an estimated fair value, yet the earnings multiple sends a cooler signal. The stock trades on a P/E of 17.7x compared with a fair ratio of 16.9x and a European Capital Markets average of 13.9x. This suggests investors are already paying a premium. Is that premium a sign of confidence or a warning to be more selective?

To see how these P/E gaps could affect your risk and return expectations, take a closer look at the valuation breakdown through the See what the numbers say about this price — find out in our valuation breakdown.

SWX:SQN P/E Ratio as at Jul 2026
SWX:SQN P/E Ratio as at Jul 2026

Next Steps

If the optimism around Swissquote Group Holding makes you curious, now is a good time to review the numbers yourself and pressure test the thesis. To see what investors are highlighting as potential upsides, start with the 3 key rewards.

Looking for more investment ideas beyond Swissquote Group Holding?

If Swissquote Group Holding is on your radar, do not stop there. Use Simply Wall Street's screener to spot fresh ideas before they move without you.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.