Banco BMG S.A.

BOVESPA:BMGB4 Stock Report

Market Cap: R$2.3b

Banco BMG Valuation

Is BMGB4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BMGB4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate BMGB4's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate BMGB4's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BMGB4?

Key metric: As BMGB4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BMGB4. This is calculated by dividing BMGB4's market cap by their current earnings.
What is BMGB4's PE Ratio?
PE Ratio6.4x
EarningsR$369.31m
Market CapR$2.33b

Price to Earnings Ratio vs Peers

How does BMGB4's PE Ratio compare to its peers?

The above table shows the PE ratio for BMGB4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.8x
BRSR6 Banco do Estado do Rio Grande do Sul
5.4x18.4%R$4.6b
BMEB4 Banco Mercantil do Brasil
6xn/aR$3.8b
ABCB4 Banco ABC Brasil
5.2x9.3%R$5.0b
BPAN4 Banco Pan
14.6x39.5%R$9.6b
BMGB4 Banco BMG
6.4xn/aR$2.3b

Price-To-Earnings vs Peers: BMGB4 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (7.8x).

Price to Earnings Ratio vs Industry

How does BMGB4's PE Ratio compare vs other companies in the South American Banks Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BMGB4 6.4xIndustry Avg. 8.7xNo. of Companies10PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BMGB4 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the South American Banks industry average (8.7x).

Price to Earnings Ratio vs Fair Ratio

What is BMGB4's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BMGB4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BMGB4's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BMGB4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$4.03
R$4.30
+6.7%
20.9%R$5.20R$3.40n/a2
Nov ’25R$3.98
R$3.95
-0.8%
13.9%R$4.50R$3.40n/a2
Oct ’25R$4.01
R$3.95
-1.5%
13.9%R$4.50R$3.40n/a2
Sep ’25R$3.79
R$3.95
+4.2%
13.9%R$4.50R$3.40n/a2
Aug ’25R$3.51
R$3.70
+5.4%
8.1%R$4.00R$3.40n/a2
Jul ’25R$3.36
R$3.60
+7.1%
11.1%R$4.00R$3.20n/a2
Jun ’25R$3.36
R$3.60
+7.1%
11.1%R$4.00R$3.20n/a2
May ’25R$3.27
R$3.60
+10.1%
11.1%R$4.00R$3.20n/a2
Apr ’25R$3.41
R$3.35
-1.8%
19.4%R$4.00R$2.70n/a2
Mar ’25R$4.00
R$3.35
-16.2%
19.4%R$4.00R$2.70n/a2
Feb ’25R$3.38
R$2.40
-29.0%
12.5%R$2.70R$2.10n/a2
Jan ’25R$3.27
R$2.40
-26.6%
12.5%R$2.70R$2.10n/a2
Dec ’24R$2.69
R$2.40
-10.8%
12.5%R$2.70R$2.10n/a2
Nov ’24R$2.30
R$2.40
+4.3%
12.5%R$2.70R$2.10R$3.982
Oct ’24R$2.42
R$2.50
+3.3%
16.0%R$2.90R$2.10R$4.012
Sep ’24R$2.46
R$2.50
+1.6%
16.0%R$2.90R$2.10R$3.792
Aug ’24R$2.86
R$2.50
-12.6%
16.0%R$2.90R$2.10R$3.512
May ’24R$2.08
R$3.35
+61.1%
37.3%R$4.60R$2.10R$3.272
Apr ’24R$2.06
R$3.75
+82.0%
22.7%R$4.60R$2.90R$3.412
Mar ’24R$2.08
R$4.00
+92.3%
19.5%R$4.60R$2.90R$4.003
Feb ’24R$2.22
R$4.00
+80.2%
19.5%R$4.60R$2.90R$3.383
Jan ’24R$2.20
R$4.00
+81.8%
19.5%R$4.60R$2.90R$3.273
Dec ’23R$2.27
R$4.00
+76.2%
19.5%R$4.60R$2.90R$2.693
Nov ’23R$2.54
R$4.67
+83.7%
3.5%R$4.83R$4.50R$2.302

Analyst Forecast: Target price is less than 20% higher than the current share price.

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