Banco Bradesco SA (BBD) Stock: How Does it Score on Fundamental Metrics?

Banco Bradesco SA (BBD) receives a strong valuation ranking of 70 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. BBD has a better value than 70% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

BBD gets a 70 Valuation Rank today. Find out what this means to you and get the rest of the rankings on BBD!

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Metrics Analysis

BBD has a trailing twelve month Price to Earnings (PE) ratio of 0.25. The historical average of roughly 15 shows a good value for BBD stock as investors are paying lower share prices relative to the company's earnings. BBD's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 1.87 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. BBD currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.64. The market is currently undervaluing BBD in relation to its projected growth due to the PEG ratio being below the fair market value of 1. BBD's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

All together these valuation metrics paint a pretty strong picture for BBD at its current price due to a undervalued PEG ratio due to strong growth. The PE and PEG for BBD are better than the average of the market resulting in a valuation score of 70. Click Here to get the full Report on Banco Bradesco SA (BBD) stock.