Banco Bradesco Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 BREC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BREC (€2.26) is trading below our estimate of fair value (€4.32)

Significantly Below Fair Value: BREC is trading below fair value by more than 20%.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BREC. This is calculated by dividing BREC's market cap by their current earnings.
What is BREC's PE Ratio?
PE Ratio10.1x
EarningsR$14.54b
Market CapR$137.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BREC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.3x
CBK Commerzbank
8.5x8.8%€18.2b
PCZ ProCredit Holding
4.2x9.9%€450.0m
MBK Merkur PrivatBank KgaA
10x8.6%€107.3m
A055550 Shinhan Financial Group
6.3x1.8%₩28.0t
BREC Banco Bradesco
10.1x30.0%€137.1b

Price-To-Earnings vs Peers: BREC is expensive based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (7.3x).


Price to Earnings Ratio vs Industry

How does BREC's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BREC 10.1xIndustry Avg. 7.4xNo. of Companies46PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BREC is expensive based on its Price-To-Earnings Ratio (10.1x) compared to the European Banks industry average (7.4x).


Price to Earnings Ratio vs Fair Ratio

What is BREC'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.

BREC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.1x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: BREC is good value based on its Price-To-Earnings Ratio (10.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).


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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