Is Bank Bradesco (BBDO) a good stock to buy?
Our tested checks disagree with each other, so the answer depends on something further down the page rather than on any one measure.
What each rating means, in numbers
Business quality — Middling. Passes 3 of the 6 health checks we can measure — things like making a profit, turning it into cash, and not piling on debt. Across 131,000 company-quarters the weakest scorers went on to fail at 5.4% against 1.4% for the strongest, in every era and all twelve sectors.
How wild is the price? — Average. The share price swings about 39% in a typical year, which puts it in the middling. Out of every 100 companies that swung like this, about 1.5 went bankrupt within the year. Across the three periods we tested that ran from 0.2% to 3.0%.
What "tested" means here, and why there is no score out of 100
Tested means the read was measured against what actually happened afterwards, on a history that keeps the companies that were later delisted, using only figures that had been filed on the day they are used. Survival was ranked on companies that really did fail. What an owner keeps was tested across the universe from 2011 to 2025.
The full record of everything we have tested is on the research pages.
Which benchmark. Over the period we tested, the median listed company returned +5.8% a year while the S&P 500 returned about +13.9% — the index is weighted by size and was carried by a handful of enormous winners. So "beats the index" and "beats the other companies you could have bought" are different questions. Where a read says it picks better companies, it means the second one. None of these gets you an index fund's return, and we would rather say that than imply otherwise.
The quality read is the strongest thing we have tested: 131,000 company-quarters across 5,300 companies, where the weakest scorers went on to fail at 5.4% against 1.4% for the strongest, holding in every era and all twelve sectors. It still says less likely to break, not likely to beat the market — every band in that study lost to the index at the median, because the median listed company does.
Each read is shown on its own rather than merged into a single score, so you can see which part is strong and which is weak instead of taking an average on trust.
▾ What goes into the smart-money reading
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend, DCF applicability). See the Financial Health section for the full balance-sheet read.
Chance the S&P 500 falls 10% or more in the next three months.
Counted from every day since 2006. Says nothing about BBDO — see the board for how it is measured.
📍 Where to start on this page, and what to look at first
How to read BBDO (bank / insurer)
BBDO generates real cash flow, but the DCF here is a low-confidence estimate — the value is sensitive to how we normalize cash flow, cyclicality, and secular/industry risk. Treat the DCF as one input, then pressure-test it against the reverse-DCF, leverage, and the operating trends below.
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1
Bank / Insurance lens (P/TBV + ROE) ↓
Price-to-tangible-book versus return-on-equity is how analysts actually judge a bank cheap or rich.
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2
Financial-health screens ↓
Watch the trend in profitability and asset quality, not the (not-applicable) bankruptcy score.
Is Bank Bradesco (BBDO) overvalued?
Macro: Neutral / mid-cycleAbout fairly priced: within 5% of what we think the business is worth.
BBDO trades at $3.92 vs an estimated intrinsic value of $4.07 — a 3.7% gap.
Not investment advice. The model can be wrong. Verify the assumptions in the sections below and consider consulting a licensed advisor for significant decisions.
What return would BBDO pay as a bond?
Not measurable here. Banks and insurers have no owner-earnings coupon in the operating sense — their deposits and float are the business. The bank lens (book value + return on equity) is the comparable read. See the cross-company ranking →
What this rating means
What the rating says — Inside every range. The current price sits inside each method's range — roughly fair on this blended view.
What it does not say — Not a forecast. This shows where today's price sits against several different ways of valuing the business. Where the methods disagree, the spread itself is the useful part - it tells you how much the answer depends on which one you trust.
Football field: where does the price sit?
Both bars below come from our own cash-flow model — one tries a range of growth rates, one shows our three scenarios. A third bar comparing BBDO with similar companies appears only when there are enough close peers to trust it, and there aren't here. So this shows how much the answer depends on growth, not a set of independent checks.
Industry multiples sourced from: industry: Banks. See the Peer Basket section below for the peer comparison and its limited-comparables caveat.
How does BBDO stack up against its closest peers?
We take the 8 same- or closely-related-industry companies closest in size to BBDO and check what investors are paying for each dollar of their revenue (or profits). If BBDO is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, FCF yield (in the table) is usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 8 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|
| WF | WOORI FINANCIAL GROUP INC. | Banks | $51.3B | — | 4.2% |
| SHG | SHINHAN FINANCIAL GROUP CO LTD | Banks | $30.1B | — | 8.2% |
| VYLD | JPMORGAN CHASE & CO | Banks | $82.8B | — | 65.9% |
| SMFG | SUMITOMO MITSUI FINANCIAL GROUP, I | Banks | $85.3B | — | — |
| BNY | Bank of New York Mellon Corp | Banks | $97.5B | — | 5.4% |
| VLYPN | VALLEY NATIONAL BANCORP | Banks | $14.3B | — | 4.1% |
| VLYPP | VALLEY NATIONAL BANCORP | Banks | $13.9B | — | 4.2% |
| VLYPO | VALLEY NATIONAL BANCORP | Banks | $13.9B | — | 4.2% |
How to value a bank (not a DCF question)
A bank's economic engine is the shareholder equity on its balance sheet — what the accountants say is left over after all loans, deposits, and liabilities are netted out. The bank earns a percentage on that equity each year (its ROE). So the two questions are: (1) what are you paying per dollar of equity (Price / Book)? and (2) how much is that equity actually earning (ROE)? Free cash flow doesn't work here — banks lend out their cash for a living.
Why it matters: For banks and insurers, book value is the regulatory capital they earn returns on. P/B is the cleanest comparison: 1.0× means buying the bank at the same price the accountants say it's worth.
Reference: 0.8–1.2× = fair for average bank · 1.5–2.0× = solid franchise · >2.5× = premium · <0.8× = potentially cheap or distress
Full explanation →
Around $1 = fair for an average bank.
Higher than plain ROE because the denominator excludes goodwill. Compare it with P/TBV above, not with P/B.
Why it matters: For a bank, ROE is the engine. A bank earning 15% on equity will compound book value at ~15%/year if it retains earnings. Combined with P/B, ROE tells you whether a premium price is supported by returns.
Reference: <8% = weak · 10–12% = solid · 15%+ = excellent · >20% sustained = exceptional franchise
Full explanation →
Why it matters: For banks especially, ROA isolates underwriting and operating efficiency from leverage. Two banks with identical ROE may have very different ROAs — one earning it cleanly, one earning it on borrowed money.
Reference: <0.8% = weak · 1.0–1.2% = solid · >1.5% = excellent (very rare for big banks)
Full explanation →
ROA differs from ROE because banks borrow ~10× their equity. Big asset base, smaller equity sliver.
Why it matters: High P/E = market expects fast growth or you are overpaying. Low P/E = market expects slow growth or the stock is cheap (sometimes for good reason).
Reference: 12–20 for mature businesses · 25–50 for growth · 80+ for speculative
Full explanation →
Note: this lens skips Altman Z-Score and Piotroski F-Score (validated on industrial companies, not banks). For deeper bank-specific health analysis: check the 10-K's Tier 1 capital ratio, Non-Performing Loan ratio, and CET1 — these are what regulators actually monitor.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
What these health ratings mean, in numbers
Business quality — Middling. Passes 3 of the 6 health checks we can measure — making a profit, turning it into cash, not piling on debt, not issuing shares. Across 131,000 company-quarters the weakest scorers went on to fail at 5.4% within a year against 1.4% for the strongest, and that held in every era and all twelve sectors. It says "less likely to break", not "likely to beat the market".
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Altman Z was calibrated on industrial firms and doesn't apply to banks — the balance sheet is dominated by loans and securities, not working capital. See the Bank Valuation Lens above for P/TBV, ROTCE, P/B, ROE and ROA — the measures analysts in that industry actually use.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
Piotroski F was built for non-financial firms (gross margin, asset turnover and current ratio all assume an industrial cost structure). For banks the equivalent quality signals are the efficiency ratio, net interest margin and provision coverage — see the Bank Valuation Lens above.
What if you assume different inputs?
Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 10.0%, the figure our model used for BBDO. Open Advanced to also change beta, growth and the rate path.
Note: the calculator opens at our published value of $4.07 — it is initialised to the same scenario-weighted result, so the two match exactly on load. The moment you move a slider, the value below becomes a single-path what-if at your assumptions (not the three-scenario weighting), which is why it can differ from the headline once you've touched it.
9.7% — beta-based (CAPM), from this stock's BetaBeta — How much the stock moves when the overall market moves. 1.0 = moves with the market; 1.5 = moves 50% more than the market.
Why it matters: Higher beta = more volatile = should demand higher discount rate. Low beta stocks (utilities, consumer staples) move less.
Reference: Most stocks 0.5–1.5 · Defensives ~0.3 · High-vol tech ~1.5–2.0
Full explanation → of 0.94. The safe Treasury rate plus a premium scaled by how much more (or less) volatile the stock is than the market.
10.0% — sector/quality tier. A simpler hurdle set by industry and business durability: lower for stable, wide-moat companies; higher for speculative or micro-caps.
The headline value and this calculator start at 10.0% — the more conservative sector/quality rate (we use the more conservative sector/quality rate when model applicability is limited or the balance sheet is stretched). Drag the slider to the other rate to see the full range.
BBDO is valued with a bank residual-income model. The calculator above starts from that published value and shows how it moves with the discount rate and long-run growth; it does not rebuild the model year by year. The sector lens shows the measures that matter most for this kind of business.
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⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
The model estimates Bradesco's intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation → at $4.07 per share, indicating the current price of $3.16 is 3.7% below intrinsic value (a 3.7% discount / margin of safetyMargin of Safety — How much room there is between the current price and intrinsic value, in your favor.
Why it matters: Benjamin Graham's core idea: only buy when there is enough discount that you can be wrong about your assumptions and still not lose money.
Reference: 20%+ is the classic Graham target · 30%+ for higher-risk companies
Full explanation →); equivalently the intrinsic value is about 29% ABOVE the price. The market is likely discounting the stock due to its negative operating cash flow of -$11.2 billion in the latest fiscal year and rising long-term debt from $4.765 billion to $7.1 billion. The biggest risk to our model's base assumptions is that operating cash flow continues to decline from its current negative level, rather than improving as implicitly assumed.
As of 8 days ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Improvement in operating cash flow in upcoming quarters
- Stabilization or reduction in total debt levels
- Growth in net interest income and fee income
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Net income grew +31% to $4.28B.
- Free cash flow is negative at -$12.10B — the cash burn widened vs last year.
Management & Leadership
Bradesco's executive team includes Marcello Francesco Di, Vinicius Urias Favarao, and Silvana Rosa Machado, all serving as Executive Officers. The filings do not explicitly list a Chief Executive Officer or Chief Financial Officer among the provided officers.
Executive Officer
Executive Officer
What They Make
Bradesco is a major Brazilian financial institution offering a wide range of banking services. Its primary payers are individuals and businesses utilizing its credit, investment, and insurance products.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
The market prices Bradesco at a 3.7% discount to the model's intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation →, likely reflecting concerns over its financial health. Specifically, the latest fiscal year shows negative operating cash flow of -$11.2 billion and long-term debt rising from $4.765 billion to $7.1 billion. These deteriorating health signals suggest the market is pricing in a material multi-year contraction in per-share cash flow, rather than the model's assumed +7.9% growth rate.
Three Scenarios, Weighted
| Scenario | IV | Upside from today's price | Weight |
|---|---|---|---|
| Conservative | $3.36 | -14.3% | 40% |
| Base | $4.22 | 7.7% | 35% |
| Optimistic | $4.99 | 27.3% | 25% |
| Weighted | $4.07 | 3.8% | 100% |
Reading the last column: it is the move from today's price to each value (IV ÷ price − 1). The headline "premium/discount to model IV" measures the same gap from the value's side (price ÷ IV − 1), so the two percentages differ in size and sign by construction — e.g. a price 8% above value is a value 7.4% below price.
Business Model & Valuation
How They Make Money
Residual Income Low
Balance-sheet financial (Banks): residual income model - book value is meaningful anchor.
▾ Why is DCF applicability "Low" for BBDO?
- The latest single-year FCF sits materially below the normalized figure the model uses, a sign of cyclicality.
- Individual business-segment drivers are not forecast separately — the model works off consolidated cash flow only.
Because of this, we headline the more conservative discount rate and urge you to weight the reverse-DCF, leverage, and operating trends alongside the DCF.
Show advanced inputs
| Sector Default | 8.0% |
What this model does NOT do: this is a consolidated residual-income (book value and returns) model. Standalone segment assumptions: none. It does not project net interest income and fee-income lines independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Net income has been positive for 5 out of the last 5 years, indicating consistent profitability.
Geography & Markets
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)52.9NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (2 notes — click to expand/collapse)
Guardrail Notes (2)
- Financial sector: using residual income model. IV = Book Value + PV(excess earnings).
- Foreign private issuer (files 20-F): the share count is the ordinary-share count from the filing and the ADS-to-ordinary ratio for this listing is not on file. Market cap and per-share figures assume 1 ADS = 1 ordinary share and may be off by the true ratio.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Bank Bradesco's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | — | 4.3B | $0.38 |
| 2024 | — | 3.3B | $0.62 |
| 2023 | — | 2.9B | $0.28 |
| 2022 | — | 4.2B | $0.41 |
| 2021 | — | 4.3B | $0.42 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC | Free Cash Flow |
|---|---|---|---|---|
| 2025 | -11.2B | 899.5M | — | -12.1B |
| 2024 | 9.4B | 428.3M | — | 8.9B |
| 2023 | -35.6M | 391.1M | — | -426.7M |
| 2022 | 9.6B | 473.1M | — | 9.2B |
| 2021 | -18.9B | 214.8M | — | -19.2B |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a EPS basis (residual-income model), not this single year.
Balance Sheet
| Total Assets | 425.4B |
| Total Liabilities | 392.8B |
| Equity | 32.6B |
| Total Debt | 7.1B |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.
The questions people ask about BBDO
Is Bank Bradesco (BBDO) a good stock to buy?
Bank Bradesco (BBDO) is priced about where our model puts it ($3.92 against $4.07). A good buy at a fair price depends on the business holding up: see the growth the price assumes, the financial-health checks and insider activity on this page. This is educational research from SEC filings, not investment advice.
Is Bank Bradesco (BBDO) overvalued?
Bank Bradesco (BBDO) trades at $3.92, within about 5% of our $4.07 estimate, so it looks fairly priced rather than overvalued or undervalued. This is educational research from SEC filings, not investment advice.
What is BBDO's intrinsic value?
Our model estimates BBDO is worth about $4.07 per share, built from the cash the business is expected to generate, taken from its SEC filings. The market price is $3.92.
Where do these numbers come from?
From Bank Bradesco's own SEC filings (10-K and 10-Q), Form 4 insider filings and daily market prices. Every figure on the page links to how it was calculated, and the model's weak spots are listed next to its results.