Regional. de Valuation

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

R A (MX$126.48) is trading below our estimate of [[fair value]] (MX$189.05)

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

Below Fair Value: R A (MX$126.48) is trading below our estimate of fair value (MX$189.05)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for R A. This is calculated by dividing R A's market cap by their current preferred multiple.
What is R A's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	Mex$41.27b

R A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does R A's PE Ratio compare to its peers?

The above table shows the PE ratio for R A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	36.2x
BBAJIO O Banco del Bajío Institución de Banca Múltiple	5.2x	-6.4%	Mex$57.7b
ELEKTRA * Grupo Elektra. de	124x	n/a	Mex$208.2b
GFINBUR O Grupo Financiero Inbursa. de	8.5x	4.5%	Mex$277.9b
GFNORTE O Grupo Financiero Banorte. de	7x	4.4%	Mex$378.9b
R A Regional. de	6.5x	4.8%	Mex$41.3b

Price-To-Earnings vs Peers: R A is good value based on its Price-To-Earnings Ratio (6.5x) compared to the peer average (36.2x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.6%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.6%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: R A is good value based on its Price-To-Earnings Ratio (6.5x) compared to the South American Banks industry average (8.4x).

Price to Earnings Ratio vs Fair Ratio

What is R A'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.

R A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.5x
Fair PE Ratio	6.6x

Price-To-Earnings vs Fair Ratio: R A is good value based on its Price-To-Earnings Ratio (6.5x) compared to the estimated Fair Price-To-Earnings Ratio (6.6x).

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 R A forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	Mex$126.48	Mex$169.91 +34.3%	9.5%	Mex$196.80	Mex$141.00	n/a	13
Aug ’25	Mex$131.11	Mex$170.83 +30.3%	9.8%	Mex$196.80	Mex$141.00	n/a	13
Jul ’25	Mex$138.35	Mex$173.06 +25.1%	8.9%	Mex$196.80	Mex$141.00	n/a	13
Jun ’25	Mex$147.32	Mex$179.68 +22.0%	5.6%	Mex$196.80	Mex$165.00	n/a	13
May ’25	Mex$154.72	Mex$179.52 +16.0%	5.5%	Mex$196.80	Mex$165.00	n/a	13
Apr ’25	Mex$164.13	Mex$170.47 +3.9%	9.8%	Mex$196.80	Mex$140.00	n/a	13
Mar ’25	Mex$161.88	Mex$170.47 +5.3%	9.8%	Mex$196.80	Mex$140.00	n/a	13
Feb ’25	Mex$159.96	Mex$166.49 +4.1%	8.7%	Mex$192.00	Mex$140.00	n/a	13
Jan ’25	Mex$162.27	Mex$164.26 +1.2%	7.7%	Mex$185.00	Mex$140.00	n/a	13
Dec ’24	Mex$146.02	Mex$163.42 +11.9%	8.2%	Mex$185.00	Mex$140.00	n/a	13
Nov ’24	Mex$135.21	Mex$162.65 +20.3%	7.6%	Mex$185.00	Mex$140.00	n/a	13
Oct ’24	Mex$125.17	Mex$158.56 +26.7%	8.6%	Mex$185.00	Mex$136.00	n/a	13
Sep ’24	Mex$124.97	Mex$159.93 +28.0%	9.9%	Mex$187.10	Mex$136.00	n/a	13
Aug ’24	Mex$128.76	Mex$161.68 +25.6%	10.0%	Mex$187.10	Mex$136.00	Mex$131.11	12
Jul ’24	Mex$124.02	Mex$166.01 +33.9%	8.9%	Mex$187.10	Mex$134.00	Mex$138.35	13
Jun ’24	Mex$138.11	Mex$166.01 +20.2%	8.9%	Mex$187.10	Mex$134.00	Mex$147.32	13
May ’24	Mex$131.67	Mex$166.24 +26.3%	9.0%	Mex$187.10	Mex$134.00	Mex$154.72	13
Apr ’24	Mex$137.68	Mex$168.01 +22.0%	7.1%	Mex$187.10	Mex$146.00	Mex$164.13	13
Mar ’24	Mex$157.28	Mex$167.16 +6.3%	8.3%	Mex$187.10	Mex$140.00	Mex$161.88	13
Feb ’24	Mex$164.66	Mex$165.08 +0.3%	7.5%	Mex$185.00	Mex$140.00	Mex$159.96	13
Jan ’24	Mex$140.09	Mex$157.00 +12.1%	11.9%	Mex$177.00	Mex$111.00	Mex$162.27	13
Dec ’23	Mex$141.89	Mex$150.35 +6.0%	12.4%	Mex$177.00	Mex$111.00	Mex$146.02	13
Nov ’23	Mex$139.39	Mex$140.58 +0.9%	10.0%	Mex$165.00	Mex$111.00	Mex$135.21	13
Oct ’23	Mex$113.53	Mex$138.27 +21.8%	9.1%	Mex$159.00	Mex$111.00	Mex$125.17	13
Sep ’23	Mex$109.09	Mex$138.50 +27.0%	9.1%	Mex$159.00	Mex$111.00	Mex$124.97	13
Aug ’23	Mex$108.37	Mex$136.03 +25.5%	8.4%	Mex$159.00	Mex$111.00	Mex$128.76	13

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