Banco del Bajío, S.A., Institución de Banca Múltiple

BMV:BBAJIO O Stock Report

Market Cap: Mex$49.2b

Banco del Bajío Institución de Banca Múltiple Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: BBAJIO O (MX$41.35) is trading below our estimate of fair value (MX$82)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BBAJIO O. This is calculated by dividing BBAJIO O's market cap by their current earnings.
What is BBAJIO O's PE Ratio?
PE Ratio4.5x
EarningsMex$10.94b
Market CapMex$49.20b

Price to Earnings Ratio vs Peers

How does BBAJIO O's PE Ratio compare to its peers?

The above table shows the PE ratio for BBAJIO O vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average46x
GFINBUR O Grupo Financiero Inbursa. de
7.6x3.8%Mex$271.2b
ELEKTRA * Grupo Elektra. de
162.9xn/aMex$209.5b
GFNORTE O Grupo Financiero Banorte. de
7.2x4.1%Mex$402.0b
R A Regional. de
6.1x3.5%Mex$39.6b
BBAJIO O Banco del Bajío Institución de Banca Múltiple
4.5x-6.3%Mex$49.2b

Price-To-Earnings vs Peers: BBAJIO O is good value based on its Price-To-Earnings Ratio (4.5x) compared to the peer average (46x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BBAJIO O 4.5xIndustry Avg. 8.7xNo. of Companies10PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BBAJIO O is good value based on its Price-To-Earnings Ratio (4.5x) compared to the South American Banks industry average (8.7x).

Price to Earnings Ratio vs Fair Ratio

What is BBAJIO O'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.

BBAJIO O PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.5x
Fair PE Ratio5.4x

Price-To-Earnings vs Fair Ratio: BBAJIO O is good value based on its Price-To-Earnings Ratio (4.5x) compared to the estimated Fair Price-To-Earnings Ratio (5.4x).

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 BBAJIO O forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentMex$41.35
Mex$61.34
+48.3%
8.5%Mex$70.00Mex$50.00n/a14
Nov ’25Mex$43.87
Mex$61.91
+41.1%
8.4%Mex$70.00Mex$50.00n/a14
Oct ’25Mex$46.02
Mex$63.76
+38.6%
8.2%Mex$77.00Mex$55.00n/a14
Sep ’25Mex$49.27
Mex$64.76
+31.4%
7.8%Mex$77.00Mex$55.00n/a14
Aug ’25Mex$53.01
Mex$64.98
+22.6%
8.0%Mex$77.00Mex$55.00n/a13
Jul ’25Mex$55.85
Mex$66.67
+19.4%
8.2%Mex$77.00Mex$55.00n/a12
Jun ’25Mex$58.63
Mex$69.00
+17.7%
5.4%Mex$77.00Mex$64.00n/a12
May ’25Mex$63.16
Mex$68.59
+8.6%
5.4%Mex$77.00Mex$64.00n/a13
Apr ’25Mex$64.20
Mex$66.83
+4.1%
6.9%Mex$73.00Mex$59.10n/a13
Mar ’25Mex$63.88
Mex$66.75
+4.5%
6.8%Mex$72.00Mex$59.10n/a13
Feb ’25Mex$65.89
Mex$66.22
+0.5%
6.4%Mex$72.00Mex$59.10n/a13
Jan ’25Mex$56.80
Mex$64.91
+14.3%
6.2%Mex$72.00Mex$59.10n/a13
Dec ’24Mex$55.89
Mex$65.14
+16.5%
5.3%Mex$71.00Mex$59.10n/a13
Nov ’24Mex$54.98
Mex$65.75
+19.6%
5.4%Mex$71.00Mex$59.10Mex$43.8713
Oct ’24Mex$54.81
Mex$64.15
+17.0%
8.4%Mex$71.00Mex$55.00Mex$46.0214
Sep ’24Mex$53.08
Mex$64.50
+21.5%
8.0%Mex$71.00Mex$55.00Mex$49.2714
Aug ’24Mex$51.35
Mex$64.85
+26.3%
7.5%Mex$71.00Mex$55.00Mex$53.0113
Jul ’24Mex$52.02
Mex$66.00
+26.9%
7.9%Mex$72.00Mex$55.00Mex$55.8514
Jun ’24Mex$55.46
Mex$66.00
+19.0%
7.9%Mex$72.00Mex$55.00Mex$58.6314
May ’24Mex$59.15
Mex$66.29
+12.1%
8.3%Mex$74.00Mex$55.00Mex$63.1614
Apr ’24Mex$65.60
Mex$64.71
-1.4%
8.7%Mex$72.00Mex$55.00Mex$64.2014
Mar ’24Mex$68.46
Mex$64.29
-6.1%
8.8%Mex$72.00Mex$55.00Mex$63.8814
Feb ’24Mex$74.59
Mex$63.80
-14.5%
9.2%Mex$72.00Mex$55.00Mex$65.8914
Jan ’24Mex$61.55
Mex$58.51
-4.9%
8.4%Mex$67.00Mex$51.00Mex$56.8014
Dec ’23Mex$62.92
Mex$56.47
-10.2%
9.7%Mex$66.00Mex$44.60Mex$55.8914
Nov ’23Mex$56.25
Mex$55.26
-1.8%
10.3%Mex$66.00Mex$44.60Mex$54.9814

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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