Exploring Popular (BPOP) Valuation: Is There More Room for Upside?

Popular (BPOP) has been drawing attention lately as its stock continues to see active trading. Investors are keeping a close eye on the bank's recent momentum. The past month has shown modest gains, inviting discussion around its valuation and future trajectory.

See our latest analysis for Popular.

While Popular’s most recent moves have sparked interest, the real story is in its steady, long-term wealth building. The latest $125.93 share price sits comfortably on a foundation of gradual momentum, with a 1-year total shareholder return of 0.33% and an impressive 2.60% for investors holding over five years. This reflects both resilience and consistency through changing market cycles.

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But with shares trading below analyst price targets and a solid record of steady returns, is Popular an undervalued opportunity? Or is the market already factoring in all of its potential gains for the future?

Most Popular Narrative: 8.8% Undervalued

Popular’s fair value, according to the most widely followed narrative, points to more upside than the recent $125.93 closing price suggests. The current estimate puts the stock’s worth at $138.12. This sets a higher bar for investors weighing what comes next.

Ongoing investments in digital infrastructure, including the launch of a new digital platform for commercial cash management and branch modernization, are expected to enhance customer acquisition, retention, and operational efficiency. These developments may support long-term revenue and margin expansion.

Read the complete narrative.

Want to know why analysts raise the bar? There is a bold growth play hidden in their math, with future profits and earnings estimates that break out from the crowd. Curious which forecasts drive their conviction? The narrative reveals the big assumptions powering their price target.

Result: Fair Value of $138.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, challenges remain, such as Popular’s heavy reliance on Puerto Rico’s local economy and the pace of its digital transformation. These factors could limit future gains.

Find out about the key risks to this Popular narrative.

Another View: Multiples Tell a Different Story

Looking through the lens of price-to-earnings ratios, Popular actually looks more expensive than both its peers and the wider US Banks sector, trading at an 11.8x multiple. However, compared to its fair ratio of 13.1x, there could be latent value if the market moves in its favor. What might tip the balance for investors weighing these different signals?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Popular Narrative

If you want to dive deeper and shape the story with your own analysis, you can unlock new insights in just a few minutes. Do it your way

A great starting point for your Popular research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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