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Banco Mercantil do Brasil S.A (BMEB3) fair value: what the stock is really worth

As of Nov 6, 2026: fair value (intrinsic value) of Banco Mercantil do Brasil S.A stock BRL 30.16, price BRL 48.70, that is 38.1% below the price, quality 40 out of 100. Rating: strongly overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.

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Financial Services BR · ISIN BRBMEBACNOR8

BM Banco Mercantil do Brasil S.A logo Broad data Nov 6, 2026

Banco Mercantil do Brasil S.A

BMEB3 · SA
Very expensive, weak quality

Our calculation puts a fair price 38% below what the stock costs today.

Healthy Growth (revenue 5y +33.0 %/yr in BRL)
Solidly profitable · 14.9% net margin (TTM)
Broad data
Costs just 6.4 times its yearly profit.
Quality 40/100
Mixed vs. peers (6/14)
Wide moat 69/100 · thin data
Fair value R$30.16 · Strongly overvalued (−38.1%)
⚠ Dilution
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What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

R$72.77 R$7.81 Fair Value R$30.16 Aug 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.

How to read this chart

60‑month range R$7.81 – R$72.77 · fair‑value band R$20.78 – R$47.22 · the R$48.70 price screens above the R$30.16 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.

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Company profile

Banco Mercantil do Brasil S.A., together with its subsidiaries, provides financial services to individuals and corporate clients in Brazil. It operates through Financial, Insurance and Business Intermediation, Marketplace, and Other segments.

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The company offers Current Account, Loans, Cards, Investments, Card receivables, Overdraft, private pension, benefit transfer, special limit, and capital market products. It also provides internet, WhatsApp, Mercantile app, and self-service banking services.

In addition, the company engages in real estate, securitization, and technology activities. The company was formerly known as Banco Industrial de Minas Gerais and changed its name to Banco Mercantil do Brasil S.A. in 1974.

Banco Mercantil do Brasil S.A. was founded in 1940 and is headquartered in Belo Horizonte, Brazil.

Stock analysis

Banco Mercantil do Brasil S.A (BMEB3) currently trades at R$48.70, while our model-based Fair Value estimate is R$30.16, 38% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Multiples group reads highest at a median of R$44.44 per share, and 1 of the 6 models we run sit above the R$48.70 price.

Bear case: the Asset-Based group reads lowest at R$11.30, and 5 of the 6 models stay below the price. Data coverage for this calculation is high.

Scenario range: R$20.78 (bear) to R$47.22 (bull), the price of R$48.70 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 40/100 (below-average quality), in the Financial Services sector.

Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.

Banco Mercantil do Brasil S.A reported revenue of R$8.7B in FY2025 versus R$2.5B in FY2021, a compound +36.3%/yr. Reported net income was R$619M in FY2025, compounding +35.4%/yr from FY2021.

Key figures

Market cap R$6.7B (≈ $1.2B) Small · P/E ratio 6.4 · P/S ratio 1.19 · EPS (TTM) R$8.06 · Dividend yield 2.0% · Net margin 14.9% · Return on equity 32.4% · Return on assets (EBIT) 3.1% (5-year average).

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 69 out of 100 (low confidence).

What moves the price

The share trades about 33% below its 52-week high and 12% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at −28% fair-value upside, at −38%, BMEB3 screens richer than that median.

Fair Value models

Bear R$20.78 Fair Value R$30.16 Bull R$47.22
Price R$48.70 · Downside -38.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (R$6.89 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income R$24.45 R$35.48 R$67.28 71
Gordon GGM R$7.35 R$12.09 R$15.48 66
DDM Multi-Stage R$7.35 R$11.57 R$13.02 65
All 6 models by family
Dividend Discount
Gordon GGM R$7.35 R$12.09 R$15.48 66
DDM Multi-Stage R$7.35 R$11.57 R$13.02 65
Multiples
P/E Multiple R$48.95 R$65.27 R$81.58 61
P/B Multiple R$17.71 R$23.61 R$29.52 53
Asset-Based
NCAV (Graham) R$8.43 R$11.30 R$16.87 52
Economic Profit
Residual Income R$24.45 R$35.48 R$67.28 71

The fair value above starts from this blend and is adjusted for dilution from new shares.

Open the full fair value analysis →

Quality Score breakdown

Overall quality 40/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 38
How much profit the company makes from its sales and capital
Quality Growth 38
Are margins and returns getting better?
Cashflow 87
Do the profits arrive as real cash?
Financial strength 21
Debt, balance sheet and risk of trouble
Investment 33
Does it invest with discipline instead of growing at any price?
Low Volatility 51
How calm the share price moves, does not count
Price momentum 46
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 36
Distance to the 52-week high, does not count
New shares 12
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+32.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+43.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+33.0%
Start year 2020 (pandemic). Over 10 years: +14.4% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.2%
What shareholders gained per year (last 5 years), in BRL ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in BRL: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+34.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+32.7%
Dividend (yield on the price)2.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 32.7% / 28.5%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.10% → 0%
Pace: the 5-year rate starts in 2020 (pandemic)

BMEB3 screens overvalued: fair value 38% below the price. Compare with China Merchants Bank Co →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Banks - Regional · 998 stocks

Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 40 · Bottom 25%
Fair Value upside −38.1% · Bottom 25%
Profitability
Return on equity (12 months) 32.4% · Top 25%
Return on assets 1.7% · Top 25%
Net margin (12 months) 14.9% · Bottom 25%
Operating margin (12 months) 24.6% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY) 16.6% · Above median
Dividend yield (12 months) 2.0% · Below median
Balance sheet
Debt / equity 0.41× · Above median

Valuation Multiplesvs Banks - Regional median · lower = cheaper

P/E (12 months) 6.4× · Cheapest 25%
P/B 2.92× · Priciest 25%
P/S (12 months) 1.19× · Cheapest 25%
Price / free cash flow (fiscal year) 4.2× · Cheapest 25%
EV/EBITDA 34.1× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 8
FUTURE (revenue growth)83 · sector 47
PAST (return on equity)100 · sector 43
HEALTH (low debt)–
DIVIDEND (yield)40 · sector 53

VALUE 0: the price sits above our fair-value range.

HEALTH: for banks, insurers and similar financial firms borrowed money is part of the business, so we do not rate debt here.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
Postal Savings Bank of China Co 601658 ¥5.53 ¥7.59 +37% vs BMEB3
China Merchants Bank Co 600036 ¥42.88 ¥52.73 +23% vs BMEB3
BNP Paribas SA BNP €91.93 €106.01 +15% vs BMEB3
Intesa Sanpaolo S.p.A ISP €6.18 €4.49 −27% vs BMEB3
State Bank of India SBIN ₹1,019 ₹736.65 −28% vs BMEB3
UniCredit S.p.A UCG €76.80 €50.44 −34% vs BMEB3
Mizuho Financial Group MFG $9.40 $5.90 −37% vs BMEB3
DBS Group D05 69.72 SGD 40.39 SGD −42% vs BMEB3
HDFC Bank Limited HDFCBANK ₹788.25 ₹406.39 −48% vs BMEB3
ICICI Bank Limited ICICIBANK ₹1,571 ₹615.63 −61% vs BMEB3

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Banco Mercantil do Brasil S.A: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "Banco Mercantil do Brasil S.A Fair Value". https://www.fairvalue-calculator.com/stock/BMEB3

Frequently asked questions

Is Banco Mercantil do Brasil S.A (BMEB3) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of R$30.16 versus a price of R$48.70, about 38% lower (overvalued).
What is the fair value of BMEB3?
Our model-based fair value for Banco Mercantil do Brasil S.A is R$30.16 (as of Nov 6, 2026), built from audited fundamentals. The current price: R$48.70.
What is the quality score of BMEB3?
Banco Mercantil do Brasil S.A has a Quality Score of 40/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Banco Mercantil do Brasil S.A (BMEB3)?
Our model-based price target is the fair value of R$30.16 (as of Nov 6, 2026) from 6 valuation models. Cautious scenario R$20.78, optimistic scenario R$47.22. It is a calculation from audited fundamentals, not an analyst target.
What is the Banco Mercantil do Brasil S.A stock forecast for 2026?
Our models put fair value at R$30.16, about 38% lower versus a price of R$48.70 (overvalued). Cautious scenario R$20.78, optimistic scenario R$47.22. The calculation is refreshed regularly with new filings.
What is the revenue of Banco Mercantil do Brasil S.A (BMEB3)?
Banco Mercantil do Brasil S.A reported trailing-twelve-month revenue of about R$5.6B (latest available figure, as of Nov 6, 2026).
Does Banco Mercantil do Brasil S.A pay a dividend?
Banco Mercantil do Brasil S.A currently shows a dividend yield of 2.01% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Banco Mercantil do Brasil S.A (BMEB3)?
Banco Mercantil do Brasil S.A has a dividend yield of 2.0%.
What is the intrinsic value of Banco Mercantil do Brasil S.A (BMEB3)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Banco Mercantil do Brasil S.A it is R$30.16 per share (as of Nov 6, 2026), against a price of R$48.70. It is the blended result of 6 valuation models in 4 families (Dividend Discount, Multiples, Asset-Based, Economic Profit).
Is Banco Mercantil do Brasil S.A stock overvalued or undervalued in 2026?
As of Nov 6, 2026, BMEB3 trades above its calculated fair value: price R$48.70, fair value R$30.16, a gap of about −38% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BMEB3?
No. The price is what the market pays today (R$48.70); the fair value is what the company's own numbers justify (R$30.16). For Banco Mercantil do Brasil S.A the two are R$18.54 per share apart. That gap is exactly why we show both numbers side by side.
How much is Banco Mercantil do Brasil S.A worth?
The market values Banco Mercantil do Brasil S.A at about R$6.7B (market capitalisation, as of Nov 6, 2026). Per share that is R$48.70; our models calculate a fair value of R$30.16 per share.
What do the bullish and bearish scenarios say about BMEB3?
Our models span a range for Banco Mercantil do Brasil S.A: cautious scenario R$20.78, base R$30.16, optimistic R$47.22 per share (as of Nov 6, 2026, price R$48.70). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BMEB3?
Banco Mercantil do Brasil S.A trades at a price-to-earnings ratio of 6.4 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$30.16 is built from several models across several years. Other multiples: P/B 2.9, P/S 1.2, EV/EBITDA 34.1.
How solid is the balance sheet of Banco Mercantil do Brasil S.A (BMEB3)?
Balance-sheet figures for Banco Mercantil do Brasil S.A (as of Nov 6, 2026): return on equity 32.4%, debt of 0.41 per unit of equity. They feed the Quality Score of 40/100, which measures business quality independently of the share price.
How far is BMEB3 from its 52-week high?
Banco Mercantil do Brasil S.A trades at R$48.70, about 33% below its 52-week high of R$72.77 and 12% above the low of R$43.49 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of R$30.16 is for.
Which stocks are comparable to Banco Mercantil do Brasil S.A?
From the same area (Financial Services) we also value China Merchants Bank Co, DBS Group, UniCredit S.p.A, Mizuho Financial Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Banco Mercantil do Brasil S.A stock attractive at the current price?
The data as of Nov 6, 2026: price R$48.70, calculated fair value R$30.16 (−38%), Quality Score 40/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BMEB3 calculated?
We run Banco Mercantil do Brasil S.A through 6 models from 4 families: Dividend Discount, Multiples, Asset-Based, Economic Profit. Every model gets the same audited fundamentals; the fair value of R$30.16 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Banco Mercantil do Brasil S.A itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Banco Mercantil do Brasil S.A (BMEB3)?
The closing price on Nov 6, 2026 was R$48.70. Our model-based fair value is R$30.16, about 38% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Banco Mercantil do Brasil S.A right now?
The price sits above even our optimistic bull case (R$47.22). The favourable scenario is already priced in. Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts. A fairly wide model range (R$20.78 to R$47.22) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Key figures of Banco Mercantil do Brasil S.A

How large is the market capitalisation of Banco Mercantil do Brasil S.A (BMEB3)?
The market capitalisation of Banco Mercantil do Brasil S.A is R$6.7B (≈ $1.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Banco Mercantil do Brasil S.A (BMEB3)?
The price-to-sales ratio of Banco Mercantil do Brasil S.A is 1.19 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Banco Mercantil do Brasil S.A (BMEB3)?
Earnings per share at Banco Mercantil do Brasil S.A are R$8.06 (price ÷ EPS = P/E 6.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Banco Mercantil do Brasil S.A (BMEB3)?
The dividend yield of Banco Mercantil do Brasil S.A is 2.0% (payout 12.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Banco Mercantil do Brasil S.A (BMEB3)?
The net margin of Banco Mercantil do Brasil S.A is 14.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Banco Mercantil do Brasil S.A (BMEB3)?
The return on equity (ROE) of Banco Mercantil do Brasil S.A is 32.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Banco Mercantil do Brasil S.A (BMEB3)?
On an EBIT basis the return on assets of Banco Mercantil do Brasil S.A is 3.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Banco Mercantil do Brasil S.A (BMEB3)?
The operating margin of Banco Mercantil do Brasil S.A is 24.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Banco Mercantil do Brasil S.A (BMEB3)?
Revenue at Banco Mercantil do Brasil S.A is growing +16.6% versus a year earlier (3y avg +43.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Banco Mercantil do Brasil S.A (BMEB3)?
Earnings per share at Banco Mercantil do Brasil S.A are growing +2.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Banco Mercantil do Brasil S.A (BMEB3) generate?
The free cash flow of Banco Mercantil do Brasil S.A is R$1.6B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Banco Mercantil do Brasil S.A (BMEB3) carry?
The net debt of Banco Mercantil do Brasil S.A is R$6.1B (fiscal year 2025, ≈ 3.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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