Banco Mercantil Valuation
| BMEB3 Stock | BRL 37.00 1.00 2.78% |
At this time, the firm appears to be overvalued. Banco Mercantil do shows a prevailing Real Value of R$31.29 per share. The current price of the firm is R$37.0. Our model approximates the value of Banco Mercantil do from analyzing the firm fundamentals such as Profit Margin of 0.07 %, return on equity of 0.15, and Current Valuation of 135.35 M as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Banco Mercantil's price fluctuation is very steady at this time. Calculation of the real value of Banco Mercantil do is based on 3 months time horizon. Increasing Banco Mercantil'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 Mercantil do. Since Banco Mercantil is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Banco Stock. However, Banco Mercantil'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 37.0 | Real 31.29 | Hype 37.0 | Naive 36.11 |
The intrinsic value of Banco Mercantil'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 Mercantil'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 Mercantil do 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 Mercantil more accurately as focusing exclusively on Banco Mercantil's fundamentals will not take into account other important factors: Banco Mercantil Total Value Analysis
Banco Mercantil do is currently projected to have takeover price of 135.35 M with market capitalization of 1.08 B, debt of 435.28 M, and cash on hands of 987.48 M. 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 Mercantil fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
135.35 M | 1.08 B | 435.28 M | 987.48 M |
Banco Mercantil Investor Information
About 81.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.09. Some equities with similar Price to Book (P/B) outperform the market in the long run. Banco Mercantil do last dividend was issued on the 4th of October 2022. The entity had 200:100 split on the 3rd of December 2021. Based on the analysis of Banco Mercantil's profitability, liquidity, and operating efficiency, Banco Mercantil do is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Banco Mercantil Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Banco Mercantil has an asset utilization ratio of 20.34 percent. This implies that the Company is making R$0.2 for each dollar of assets. An increasing asset utilization means that Banco Mercantil do is more efficient with each dollar of assets it utilizes for everyday operations.Banco Mercantil Ownership Allocation
Banco Mercantil holds a total of 65.16 Million outstanding shares. Banco Mercantil do shows majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company's outstanding shares. 81.12 percent of Banco Mercantil do outstanding shares that are owned by insiders signifies that they have been buying or selling the stock in recent months in anticipation of some upcoming event. 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 Mercantil Profitability Analysis
The company reported the revenue of 2.53 B. Net Income was 167.36 M with profit before overhead, payroll, taxes, and interest of 2.25 B.About Banco Mercantil Valuation
The stock valuation mechanism determines Banco Mercantil's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Banco Mercantil do 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 Mercantil. We calculate exposure to Banco Mercantil's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Banco Mercantil's related companies.Banco Mercantil do Brasil S.A., together with its subsidiaries, provides financial services to individuals and corporate clients in Brazil. The company was founded in 1943 and is headquartered in Belo Horizonte, Brazil. MERC BRASIL operates under BanksRegional classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 2927 people.
8 Steps to conduct Banco Mercantil's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Banco Mercantil'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 Mercantil's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Banco Mercantil's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Banco Mercantil's revenue streams: Identify Banco Mercantil's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Banco Mercantil's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Banco Mercantil's growth potential: Evaluate Banco Mercantil's management, business model, and growth potential.
- Determine Banco Mercantil'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 Mercantil'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 Mercantil's price analysis, check to measure Banco Mercantil'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 Mercantil is operating at the current time. Most of Banco Mercantil's value examination focuses on studying past and present price action to predict the probability of Banco Mercantil'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 Mercantil's price. Additionally, you may evaluate how the addition of Banco Mercantil to your portfolios can decrease your overall portfolio volatility.