Banco Do Valuation
| BBAS3 Stock | BRL 25.26 0.59 2.28% |
At this time, the firm appears to be overvalued. Banco do Brasil shows a prevailing Real Value of R$22.02 per share. The current price of the firm is R$25.26. Our model approximates the value of Banco do Brasil from analyzing the firm fundamentals such as Return On Equity of 0.2, profit margin of 0.33 %, and Current Valuation of 838.74 B as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Banco Do's price fluctuation is very steady at this time. Calculation of the real value of Banco do Brasil is based on 3 months time horizon. Increasing Banco Do's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Banco stock is determined by what a typical buyer is willing to pay for full or partial control of Banco do Brasil. Since Banco Do is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Banco Stock. However, Banco Do's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 25.26 | Real 22.02 | Hype 25.26 | Naive 25.21 |
The intrinsic value of Banco Do's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Banco Do's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Banco do Brasil helps investors to forecast how Banco stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Banco Do more accurately as focusing exclusively on Banco Do's fundamentals will not take into account other important factors: Banco Do Total Value Analysis
Banco do Brasil is currently projected to have takeover price of 838.74 B with market capitalization of 120.88 B, debt of 120.91 B, and cash on hands of 589.02 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Banco Do fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
838.74 B | 120.88 B | 120.91 B | 589.02 B |
Banco Do Investor Information
About 50.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.58. Some equities with similar Price to Book (P/B) outperform the market in the long run. Banco do Brasil has Price/Earnings To Growth (PEG) ratio of 0.33. The entity recorded earning per share (EPS) of 10.92. The firm last dividend was issued on the 13th of December 2022. Banco Do had 1:2 split on the 16th of April 2024. Based on the analysis of Banco Do's profitability, liquidity, and operating efficiency, Banco do Brasil is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Banco Do Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Banco Do has an asset utilization ratio of 5.05 percent. This implies that the Company is making R$0.0505 for each dollar of assets. An increasing asset utilization means that Banco do Brasil is more efficient with each dollar of assets it utilizes for everyday operations.Banco Do Ownership Allocation
Banco Do holds a total of 2.85 Billion outstanding shares. Banco do Brasil retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Banco Do Profitability Analysis
The company reported the revenue of 97.53 B. Net Income was 28.29 B with profit before overhead, payroll, taxes, and interest of 73.28 B.About Banco Do Valuation
The stock valuation mechanism determines Banco Do's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Banco do Brasil based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Banco Do. We calculate exposure to Banco Do's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Banco Do's related companies.Banco do Brasil S.A., together with its subsidiaries, provides banking products and services for individuals, companies, and public sectors in Brazil and internationally. Banco do Brasil S.A. was incorporated in 1808 and is headquartered in Braslia, Brazil. BRASIL ON operates under BanksRegional classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 86466 people.
8 Steps to conduct Banco Do's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Banco Do's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Banco Do's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Banco Do's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Banco Do's revenue streams: Identify Banco Do's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Banco Do's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Banco Do's growth potential: Evaluate Banco Do's management, business model, and growth potential.
- Determine Banco Do's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Banco Do's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Tools for Banco Stock Analysis
When running Banco Do's price analysis, check to measure Banco Do's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Banco Do is operating at the current time. Most of Banco Do's value examination focuses on studying past and present price action to predict the probability of Banco Do's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Banco Do's price. Additionally, you may evaluate how the addition of Banco Do to your portfolios can decrease your overall portfolio volatility.