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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-08-10), Banco Mercantil do Brasil's 1-Year Sharpe Ratio is 1.11.
Banco Mercantil do Brasil (BSP:BMEB3) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Banco Mercantil do Brasil 1-Year Sharpe Ratio Related Terms
Banco Mercantil do Brasil 1-Year Sharpe Ratio Competitor Comparison
For the Banks - Regional subindustry, Banco Mercantil do Brasil's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Banco Mercantil do Brasil's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Banco Mercantil do Brasil's 1-Year Sharpe Ratio falls into.
Banco Mercantil do Brasil 1-Year Sharpe Ratio Calculation
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Banco Mercantil do Brasil (BSP:BMEB3) has a 1-Year Sharpe Ratio of 1.11 as of Aug. 10, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Banco Mercantil do Brasil and its competitors.
Is Banco Mercantil do Brasil's 1-Year Sharpe Ratio too high?
Banco Mercantil do Brasil's current 1-Year Sharpe Ratio is 1.11. Overall, Banco Mercantil do Brasil has a GF Score™ of 59/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Banco Mercantil do Brasil's 1-Year Sharpe Ratio compare to competitors?
Banco Mercantil do Brasil's 1-Year Sharpe Ratio of 1.11 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 1-Year Sharpe Ratio for a Banks company?
A good 1-Year Sharpe Ratio depends on the Banks industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Banco Mercantil do Brasil and its competitors. Banco Mercantil do Brasil's current 1-Year Sharpe Ratio is 1.11. 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$40.41, compared to a current price of R$50.86 — trading 25.9% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.11. Banco Mercantil do Brasil's overall GF Score™ is 59/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Banco Mercantil do Brasil (BSP:BMEB3), the current 1-Year Sharpe Ratio is 1.11 as of Aug. 10, 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$50.86 is trading 25.9% above its estimated GF Value™ of R$40.41.
GuruFocus considers Banco Mercantil do Brasil to be Modestly Overvalued.
Key valuation signals for BSP:BMEB3:
1-Year Sharpe Ratio: 1.11
GF Value™: R$40.41 vs. price of R$50.86 (25.9% 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.
59GF Score
Get the complete analysis for BSP:BMEB3
1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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