Mercantile Bank (DHA:MERCANBANK) Margin of Safety % (DCF Earnings Based): -16.54% (As of Jun. 30, 2026)


DHA:MERCANBANK Mercantile Bank PLC DHA:MERCANBANK
68 GF Score
Price BDT7.40
GF Value BDT8.36
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Mercantile Bank Margin of Safety % (DCF Earnings Based)?

Mercantile Bank DHA:MERCANBANK -1.33% 68 Margin of Safety % (DCF Earnings Based) is -16.54% as of Jun. 30, 2026. GuruFocus rates DHA:MERCANBANK with a GF Score™ of 68/100 and a GF Value™ of BDT8.36 (Modestly Undervalued). The stock has 3 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-30), Mercantile Bank's Predictability Rank is 3.5-Stars. Mercantile Bank's intrinsic value calculated from the Discounted Earnings model is BDT6.35 and current share price is BDT7.40. Consequently,

Mercantile Bank's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -16.54%.

Mercantile Bank Margin of Safety % (DCF Earnings Based) Competitor Comparison

For the Banks - Regional subindustry, Mercantile Bank's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Mercantile Bank Margin of Safety % (DCF Earnings Based) vs Banks Industry

For the Banks industry and Financial Services sector, Mercantile Bank's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Mercantile Bank's Margin of Safety % (DCF Earnings Based) falls into.


DHA:MERCANBANK
68GF Score
Mercantile Bank PLC DHA:MERCANBANK
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Mercantile Bank Margin of Safety % (DCF Earnings Based) Calculation

Mercantile Bank's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(6.35-7.40)/6.35
=-16.54 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -16.54% mean?
Mercantile Bank (DHA:MERCANBANK) has a Margin of Safety % (DCF Earnings Based) of -16.54% as of Jun. 30, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Mercantile Bank.
Is Mercantile Bank's Margin of Safety % (DCF Earnings Based) too high?
Mercantile Bank's current Margin of Safety % (DCF Earnings Based) is -16.54%. Overall, Mercantile Bank has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercantile Bank's Margin of Safety % (DCF Earnings Based) compare to competitors?
Mercantile Bank's Margin of Safety % (DCF Earnings Based) of -16.54% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Banks company?
A good Margin of Safety % (DCF Earnings Based) depends on the Banks industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Mercantile Bank. Mercantile Bank's current Margin of Safety % (DCF Earnings Based) is -16.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercantile Bank stock overvalued right now?
Based on GuruFocus' analysis, Mercantile Bank (DHA:MERCANBANK) is currently considered Modestly Undervalued. The stock's GF Value™ is BDT8.36, compared to a current price of BDT7.40 — trading 11.5% below its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -16.54%. Mercantile Bank's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Mercantile Bank (DHA:MERCANBANK), the current Margin of Safety % (DCF Earnings Based) is -16.54% as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Mercantile Bank (DHA:MERCANBANK) Overvalued in 2026?

Based on GuruFocus' analysis, Mercantile Bank stock appears to be undervalued. The current stock price of BDT7.40 is trading 11.5% below its estimated GF Value™ of BDT8.36. GuruFocus considers Mercantile Bank to be Modestly Undervalued.

Key valuation signals for DHA:MERCANBANK:

  • Margin of Safety % (DCF Earnings Based): -16.54%
  • GF Value™: BDT8.36 vs. price of BDT7.40 (11.5% below fair value)
  • GF Score™: 68/100 with 3 warning signs

No single metric tells the full story. See the DHA:MERCANBANK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Mercantile Bank Business Description

Address 61, Dilkusha Commercial Area, Dhaka, BGD
Mercantile Bank PLC is a commercial bank that engages in providing banking and financial services. It offers a range of services such as SME financing, Retail Banking, Corporate Banking, Foreign Trade, NRB banking, Treasury instruments services, and E-banking, among others. Its operating segments comprise Commercial Banking including Off-shore Banking Units, Islamic Banking Window Operations, Mercantile Bank Securities Limited; MBL Assets Management Limited, and Mercantile Exchange House (UK) Ltd.
68GF Score

Get the complete analysis for DHA:MERCANBANK

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

BDT7.40
Price
BDT8.36
GF Value