Banco do Brasil (BBAS3.SA)
Financials · B3 · Brazil
Fundamentals
Valuation and ratings
Banco do Brasil trades at R$20.76, which is 57% below the R$32.55 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 39 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 9.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Banco do Brasil
Banco do Brasil S.A., together with its subsidiaries, provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. The company operates through Banking, Investments, Fund Management, Insurance (including insurance, private pension funds and capitalization) and Electronic Payments segments. Its Banking segment offers various products and services, including deposits, loans, and other services to retail, wholesale, and public sectors. This segment also engages in the business with micro-entrepreneurs and other activities through banking correspondents. Its Investments segment engages in the structuring and distribution of debt and equity instruments in the primary and secondary markets; and provision of financial services. The company's Fund Management segment is involved in the purchase, sale, and custody of securities and portfolio management; and the structuring, organization, and management of investment funds and clubs. Its Insurance segment provides life, property, and automobile insurance products, as well as private pension and capitalization plans. The company's Electronic Payment segment provides capture, transmission, processing, and financial settlement services for electronic payment transactions. Its Other segment engages in the provision of credit recovery and consortium management services. This segment is also involved in the development, manufacturing, sale, rental, and integration of digital electronic systems, peripherals, programs, inputs, and computing supplies. The company was incorporated in 1808 and is headquartered in Brasília, Brazil.
BBAS3.SA passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Banco do Brasil (BBAS3.SA) undervalued?
Against our discounted cash flow estimate of R$32.55, BBAS3.SA at R$20.76 is 57% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is BBAS3.SA's P/E ratio?
BBAS3.SA trades at 9.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.