Mercantil Financeira S.A. - Crédito, Financiamento e Investimento

BOVESPA:MERC3 Stock Report

Market Cap: R$217.2m

Creditaqui Financeira - Crédito Financiamento e Investimento Valuation

Is MERC3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MERC3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate MERC3's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate MERC3's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MERC3?

Key metric: As MERC3 is an unprofitable bank we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for MERC3. This is calculated by dividing MERC3's market cap by their current book value.
What is MERC3's PB Ratio?
PB Ratio1.1x
BookR$248.68m
Market CapR$217.25m

Price to Book Ratio vs Peers

How does MERC3's PB Ratio compare to its peers?

The above table shows the PB ratio for MERC3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average1.1x
TRAD3 TC Traders Club
1.3xn/aR$297.1m
CSUD3 CSU Digital
1.4xn/aR$639.9m
BAHI3 Bahema Educação
1.1xn/aR$127.7m
BMIN4 Banco Mercantil de Investimentos
0.6xn/aR$96.6m
MERC3 Creditaqui Financeira - Crédito Financiamento e Investimento
1.1xn/aR$217.2m

Price-To-Book vs Peers: MERC3 is expensive based on its Price-To-Book Ratio (1.1x) compared to the peer average (0.4x).

Price to Book Ratio vs Industry

How does MERC3's PB Ratio compare vs other companies in the Global Consumer Finance Industry?

17 CompaniesPrice / BookEstimated GrowthMarket Cap
MERC3 1.1xIndustry Avg. 1.1xNo. of Companies51PB00.81.62.43.24+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: MERC3 is expensive based on its Price-To-Book Ratio (1.1x) compared to the Global Consumer Finance industry average (0.9x).

Price to Book Ratio vs Fair Ratio

What is MERC3's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MERC3 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio1.1x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate MERC3's Price-To-Book 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?

Analyst Forecast: Insufficient data to show price forecast.

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