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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Banco Mercantil do BrasilBSP:BMEB3 +0.98%74 Peter Lynch Fair Value is R$108.02 as of Jul. 22, 2026, which is 100% below its 10-year median of 0.69. GuruFocus rates BSP:BMEB3 with a GF Score™ of 74/100 and a GF Value™ of R$41.49 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 873 Banks companies, Banco Mercantil do Brasil ranks better than 84.77% on this metric.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, Banco Mercantil do Brasil's PEG is 1. Banco Mercantil do Brasil's 5-Year TTM Book Value Growth Rate is 16.56.
Banco Mercantil do Brasil's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2026 was R$6.52. Therefore, the Peter Lynch Fair Value for today is R$108.02.
The historical rank and industry rank for Banco Mercantil do Brasil's Peter Lynch Fair Value or its related term are showing as below:
BSP:BMEB3'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.36 Med: 0.69 Max: 1.37
Current: 0.48
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Banco Mercantil do Brasil was 1.37. The lowest was 0.36. And the median was 0.69.
BSP:BMEB3's Price-to-Peter-Lynch-Fair-Value is ranked better than 84.77% of 873
companies
in the Banks industry
Industry Median: 1.13
vs BSP:BMEB3: 0.48
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
Banco Mercantil do Brasil (BSP:BMEB3) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of Book Value per share over the past 5 years, which is 16.56 instead of 15 in this case.
Banco Mercantil do Brasil's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
51.50
/
108.02
=
0.48
* 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.
Banco Mercantil do Brasil Peter Lynch Fair Value Related Terms
Banco Mercantil do Brasil Peter Lynch Fair Value Historical Data
* 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.
Banco Mercantil do Brasil Peter Lynch Fair Value Chart
Banco Mercantil do Brasil Peter Lynch Fair Value Competitor Comparison
For the Banks - Regional subindustry, Banco Mercantil do Brasil's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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.
Banco Mercantil do Brasil Price-to-Peter-Lynch-Fair-Value vs Banks Industry
For the Banks industry and Financial Services sector, Banco Mercantil do Brasil's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where Banco Mercantil do Brasil's Price-to-Peter-Lynch-Fair-Value falls into.
Banco Mercantil do Brasil's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was R$6.52.
* Note that for companies that do not have enough quarterly data to calculate the 5-Year TTM EBITDA Growth Rate, we use the annual data for the calculation.
* 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.
** Please be aware that the 5-Year TTM Book Value Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data is the latest quarter data. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of R$108.02 mean?
Banco Mercantil do Brasil (BSP:BMEB3) has a Peter Lynch Fair Value of R$108.02 as of Jul. 22, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Banco Mercantil do Brasil and its competitors. This is 15555% above median its historical median of 0.69. Over the past decade, Banco Mercantil do Brasil's Peter Lynch Fair Value has ranged from 0.36 to 1.37. According to the industry distribution chart, Banco Mercantil do Brasil ranks #133 out of 873 companies in the Banks industry, placing it in the top 15.2%.
Is Banco Mercantil do Brasil's Peter Lynch Fair Value too high?
Banco Mercantil do Brasil's current Peter Lynch Fair Value of R$108.02 is 15555% above median its 10-year median of 0.69. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 1.37. Based on the distribution chart, Banco Mercantil do Brasil ranks #133 out of 873 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Banco Mercantil do Brasil has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Banco Mercantil do Brasil's Peter Lynch Fair Value compare to competitors?
According to the Banks industry distribution chart, Banco Mercantil do Brasil ranks #133 out of 873 companies for Peter Lynch Fair Value. This places Banco Mercantil do Brasil in the top 15% of its industry — outperforming the majority of peers. The industry median Peter Lynch Fair Value is 1.13. Historically, Banco Mercantil do Brasil's own Peter Lynch Fair Value has ranged from 0.36 to 1.37 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Peter Lynch Fair Value for a Banks company?
The median Peter Lynch Fair Value among Banks companies is 1.13, based on 873 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value 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 Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Banco Mercantil do Brasil and its competitors. For the Banks industry, the median Peter Lynch Fair Value is 1.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco Mercantil do Brasil's current Peter Lynch Fair Value is R$108.02, which is 15555% above median its own 10-year median of 0.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco Mercantil do Brasil stock overvalued right now?
Based on GuruFocus' analysis, Banco Mercantil do Brasil (BSP:BMEB3) is currently considered Modestly Overvalued. The stock's GF Value™ is R$41.49, compared to a current price of R$51.50 — trading 24.1% above its estimated fair value. The current Peter Lynch Fair Value is R$108.02, which is 15555% above median its 10-year median of 0.69. Banco Mercantil do Brasil's overall GF Score™ is 74/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For Banco Mercantil do Brasil (BSP:BMEB3), the current Peter Lynch Fair Value is R$108.02 as of Jul. 22, 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 Banco Mercantil do Brasil (BSP:BMEB3) Overvalued in 2026?
Based on GuruFocus' analysis, Banco Mercantil do Brasil stock appears to be overvalued.
The current stock price of R$51.50 is trading 24.1% above its estimated GF Value™ of R$41.49.
GuruFocus considers Banco Mercantil do Brasil to be Modestly Overvalued.
Key valuation signals for BSP:BMEB3:
Peter Lynch Fair Value: R$108.02 (15555% above median its 10-year median of 0.69)
GF Value™: R$41.49 vs. price of R$51.50 (24.1% above fair value)
No single metric tells the full story. See the BSP:BMEB3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Banco Mercantil do Brasil SA offers commercial banking services. It offers personal and corporate credit cards, lease financing, business financing services, Internet banking, and other financial services. The company offers checking and savings accounts, and time deposits and funds; payroll-deductible loans, personal loans, overdraft facilities, credit cards, and vehicle financing services; private pension, insurance, and capitalization products and services; and collection, payment of taxes and fees to individuals.
74GF Score
Get the complete analysis for BSP:BMEB3
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