A Fresh Look at Credicorp (NYSE:BAP) Valuation Following Double-Digit Shareholder Returns

Credicorp (NYSE:BAP) has delivered double-digit returns for investors over the past year, supported by steady revenue and net income growth. Shares have moved higher in the past 3 months, outpacing many regional banks.

See our latest analysis for Credicorp.

Credicorp’s share price has soared 38.6% year-to-date and surged nearly 15% in the last three months, with upbeat sentiment fueled by its consistent earnings traction and investor appetite for strong regional banks. The 44.3% total shareholder return over the past year highlights momentum that has produced impressive three- and five-year gains as well.

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Given such robust gains, some investors may wonder whether Credicorp’s share price still holds upside potential, or if the market has already factored in future growth and left limited room for a bargain buy.

Most Popular Narrative: 5.2% Undervalued

Credicorp's fair value, based on the most widely followed narrative, sits modestly above its last close. This difference offers a narrow cushion, suggesting that the current share price is seen as slightly below what future growth assumptions might justify.

*Ongoing investments in digital platforms, AI, and end-to-end automation are boosting operational efficiency. These improvements are enabling scalable service delivery with lower marginal costs, which is expected to further improve the group's net margin as revenue from digital channels grows.*

Read the complete narrative.

What powers this calculation? Think digital revolutions, surging new income streams, and an operational shift that could change the earnings game for years ahead. Will these innovations spark the next era of growth or just keep margins humming? Curious which bold projections push the price target higher? Uncover the strategy that's shaping Credicorp's fair value.

Result: Fair Value of $268.85 (UNDERVALUED)

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

However, lingering risks such as heavy exposure to Peru’s economy and ambitious digital lending strategies could disrupt Credicorp’s earnings momentum if conditions turn unfavorable.

Find out about the key risks to this Credicorp narrative.

Build Your Own Credicorp Narrative

If you want to draw your own conclusions or dig deeper into the numbers, you can build your own perspective in just minutes. Do it your way.

A great starting point for your Credicorp research is our analysis highlighting 4 key rewards and 2 important warning signs 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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