In the subsequent sections, I touch on the potential valuation re-rating drivers for SMFG.

Source: https://seekingalpha.com/article/4657112-sumitomo-mitsui-financial-stock-fairly-valued?source=feed_all_articles

Motilal Oswal Financial Services, in its recent research report, took an optimistic view on the sector, stating that the broader re-rating in PSU entities will enable steady performance of the sector.

Source: https://www.thehindubusinessline.com/specials/current-account/what-to-expect-from-the-bfsi-sector-in-2024/article67683169.ece

Taking into account Prospect Capital's larger net asset value discount and higher margin of safety, I'd choose PSEC for its re-rating potential.

Source: https://seekingalpha.com/article/4658972-prospect-capital-why-i-doubling-down-on-this-12-percent-bdc-yield-end-of-2023?source=feed_all_articles

The potential announcement of dividends in the coming quarters will result in a stock re-rating.

Source: https://investorplace.com/2023/08/3-stocks-to-buy-for-100-upside-after-strong-quarterly-results/

The re-rating of state income tax is usually part of the autumn budget, which will be published on Sept. 20.

Source: https://www.marketscreener.com/news/latest/Swedan-to-pause-inflation-linked-hike-in-state-taxes-in-budget--44762024/?utm_medium=RSS&utm_content=20230903

Valuation followed through, re-rating from high single-digits to mid-teens forward PE multiples.

Source: https://seekingalpha.com/article/4658866-lumentum-positive-on-the-cloud-light-technology-acquisition?source=feed_all_articles