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Banco Mercantil do BrasilBSP:BMEB3 +0.98%73 5-Year Yield-on-Cost % is 22.84 as of Jul. 22, 2026, which is 25% below its 10-year median of 30.61. GuruFocus rates BSP:BMEB3 with a GF Score™ of 73/100 and a GF Value™ of R$41.49 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,251 Banks companies, Banco Mercantil do Brasil ranks better than 96.16% on this metric.
The historical rank and industry rank for Banco Mercantil do Brasil's 5-Year Yield-on-Cost % or its related term are showing as below:
BSP:BMEB3'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.45 Med: 30.61 Max: 93.87
Current: 22.84
During the past 13 years, Banco Mercantil do Brasil's highest Yield on Cost was 93.87. The lowest was 2.45. And the median was 30.61.
BSP:BMEB3's 5-Year Yield-on-Cost % is ranked better than 96.16% of 1251
companies
in the Banks industry
Industry Median: 3.88
vs BSP:BMEB3: 22.84
Banco Mercantil do Brasil (BSP:BMEB3) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Banco Mercantil do Brasil 5-Year Yield-on-Cost % Related Terms
Banco Mercantil do Brasil 5-Year Yield-on-Cost % Competitor Comparison
For the Banks - Regional subindustry, Banco Mercantil do Brasil's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Banco Mercantil do Brasil's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Banco Mercantil do Brasil's 5-Year Yield-on-Cost % falls into.
Banco Mercantil do Brasil 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Banco Mercantil do Brasil (BSP:BMEB3) has a 5-Year Yield-on-Cost % of 22.84 as of Jul. 22, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Banco Mercantil do Brasil and its competitors. This is 25% below median its historical median of 30.61. Over the past decade, Banco Mercantil do Brasil's 5-Year Yield-on-Cost % has ranged from 2.45 to 93.87. According to the industry distribution chart, Banco Mercantil do Brasil ranks #48 out of 1251 companies in the Banks industry, placing it in the top 3.8%.
Is Banco Mercantil do Brasil's 5-Year Yield-on-Cost % too high?
Banco Mercantil do Brasil's current 5-Year Yield-on-Cost % of 22.84 is 25% below median its 10-year median of 30.61. Over the past 10 years, this metric has ranged from a low of 2.45 to a high of 93.87. The Banks industry median 5-Year Yield-on-Cost % is 3.88. Banco Mercantil do Brasil's value of 22.84 is 488.7% above this industry median. Based on the distribution chart, Banco Mercantil do Brasil ranks #48 out of 1251 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 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Banco Mercantil do Brasil's 5-Year Yield-on-Cost % compare to competitors?
According to the Banks industry distribution chart, Banco Mercantil do Brasil ranks #48 out of 1251 companies for 5-Year Yield-on-Cost %. This places Banco Mercantil do Brasil in the top 4% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.88. Banco Mercantil do Brasil's value of 22.84 is 488.7% above this benchmark. Historically, Banco Mercantil do Brasil's own 5-Year Yield-on-Cost % has ranged from 2.45 to 93.87 over the past decade. While the company's 10-year median is 30.61 vs. the industry median of 3.88, Banco Mercantil do Brasil has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.88, based on 1,251 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Banco Mercantil do Brasil's current 5-Year Yield-on-Cost % of 22.84 is 488.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Banco Mercantil do Brasil and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco Mercantil do Brasil's current 5-Year Yield-on-Cost % is 22.84, which is 25% below median its own 10-year median of 30.61. 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 5-Year Yield-on-Cost % is 22.84, which is 25% below median its 10-year median of 30.61 and 488.7% above the Banks industry median of 3.88. Banco Mercantil do Brasil's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Banco Mercantil do Brasil (BSP:BMEB3), the current 5-Year Yield-on-Cost % is 22.84 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:
5-Year Yield-on-Cost %: 22.84 (25% below median its 10-year median of 30.61)
GF Value™: R$41.49 vs. price of R$51.50 (24.1% above fair value)
Industry Position: 488.7% above the Banks median (#48 of 1251)
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.
73GF Score
Get the complete analysis for BSP:BMEB3
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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