Grupo Financiero Banorte, S.A.B. de C.V.

BMV:GFNORTE O Stock Report

Market Cap: Mex$402.0b

Grupo Financiero Banorte. de Valuation

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

Below Fair Value: GFNORTE O (MX$140.23) is trading below our estimate of fair value (MX$189.43)

Significantly Below Fair Value: GFNORTE 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 GFNORTE O?

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

The above table shows the Price to Earnings ratio for GFNORTE O. This is calculated by dividing GFNORTE O's market cap by their current earnings.
What is GFNORTE O's PE Ratio?
PE Ratio7.2x
EarningsMex$55.51b
Market CapMex$401.96b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GFNORTE O vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average47.7x
GFINBUR O Grupo Financiero Inbursa. de
7.6x3.8%Mex$271.2b
ELEKTRA * Grupo Elektra. de
162.9xn/aMex$209.5b
BBAJIO O Banco del Bajío Institución de Banca Múltiple
4.5x-6.3%Mex$49.2b
VCB Commercial Bank for Foreign Trade of Vietnam
15.7x20.2%₫503.0t
GFNORTE O Grupo Financiero Banorte. de
7.2x4.1%Mex$402.0b

Price-To-Earnings vs Peers: GFNORTE O is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (47.7x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
GFNORTE O 7.2xIndustry Avg. 8.7xNo. of Companies10PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GFNORTE O is good value based on its Price-To-Earnings Ratio (7.2x) compared to the South American Banks industry average (8.7x).

Price to Earnings Ratio vs Fair Ratio

What is GFNORTE 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.

GFNORTE O PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.2x
Fair PE Ratio7.2x

Price-To-Earnings vs Fair Ratio: GFNORTE O is good value based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (7.2x).

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 GFNORTE O forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentMex$140.23
Mex$182.00
+29.8%
10.0%Mex$230.00Mex$155.00n/a15
Nov ’25Mex$141.78
Mex$181.67
+28.1%
9.7%Mex$230.00Mex$155.00n/a15
Oct ’25Mex$139.50
Mex$183.07
+31.2%
11.3%Mex$245.00Mex$155.00n/a15
Sep ’25Mex$136.21
Mex$186.67
+37.0%
11.2%Mex$245.00Mex$155.00n/a15
Aug ’25Mex$139.49
Mex$189.13
+35.6%
11.8%Mex$245.00Mex$155.00n/a15
Jul ’25Mex$146.51
Mex$193.13
+31.8%
12.1%Mex$250.00Mex$155.00n/a15
Jun ’25Mex$161.37
Mex$202.41
+25.4%
10.3%Mex$250.00Mex$163.00n/a15
May ’25Mex$169.55
Mex$202.41
+19.4%
10.3%Mex$250.00Mex$163.00n/a15
Apr ’25Mex$176.40
Mex$198.28
+12.4%
10.6%Mex$250.00Mex$163.00n/a15
Mar ’25Mex$176.90
Mex$194.59
+10.0%
8.4%Mex$220.00Mex$163.00n/a14
Feb ’25Mex$176.67
Mex$195.01
+10.4%
8.4%Mex$220.00Mex$163.00n/a14
Jan ’25Mex$170.76
Mex$190.51
+11.6%
8.0%Mex$220.00Mex$163.00n/a14
Dec ’24Mex$159.61
Mex$189.01
+18.4%
7.1%Mex$210.00Mex$163.00n/a14
Nov ’24Mex$151.65
Mex$188.93
+24.6%
7.4%Mex$210.00Mex$163.00Mex$141.7814
Oct ’24Mex$146.11
Mex$187.73
+28.5%
6.5%Mex$207.00Mex$163.00Mex$139.5015
Sep ’24Mex$145.53
Mex$186.56
+28.2%
6.8%Mex$207.00Mex$163.00Mex$136.2116
Aug ’24Mex$155.21
Mex$183.69
+18.3%
6.8%Mex$207.00Mex$163.00Mex$139.4916
Jul ’24Mex$141.21
Mex$178.24
+26.2%
7.5%Mex$207.00Mex$149.00Mex$146.5117
Jun ’24Mex$140.87
Mex$178.29
+26.6%
7.5%Mex$207.00Mex$149.00Mex$161.3717
May ’24Mex$155.48
Mex$178.18
+14.6%
7.4%Mex$207.00Mex$149.00Mex$169.5517
Apr ’24Mex$151.90
Mex$176.88
+16.4%
7.1%Mex$202.00Mex$149.00Mex$176.4017
Mar ’24Mex$161.94
Mex$177.35
+9.5%
7.0%Mex$202.00Mex$149.00Mex$176.9017
Feb ’24Mex$157.54
Mex$176.06
+11.8%
6.5%Mex$197.00Mex$149.00Mex$176.6717
Jan ’24Mex$139.91
Mex$173.88
+24.3%
6.2%Mex$197.00Mex$149.00Mex$170.7617
Dec ’23Mex$152.06
Mex$172.76
+13.6%
6.2%Mex$197.00Mex$149.00Mex$159.6117
Nov ’23Mex$163.48
Mex$169.76
+3.8%
7.8%Mex$197.00Mex$145.00Mex$151.6517

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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