BAP
Credicorp Ltd.
$370.21
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 9.1% below fair value
You pay
$370.21
Bear
$282.60
Fair
$407.40
Bull
$465.82
Bear
$282.60
-23.7%
ROTCE 16.3% → 2.43x TBV
Fair
$407.40
+10.0%
ROTCE 21.8% → 3.50x TBV
Bull
$465.82
+25.8%
ROTCE 25.0% → 4.00x TBV
Adjust Assumptions
21.8%
9.1%
Key Value Driver
ROTCE (21.8%) vs. cost of equity (9.1%)
Implied Market Multiple
3.18x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (15 analysts)
$434.33
Divergence from AlphaVal
6%
Summary
With ROTCE of 21.8% vs. 9.1% cost of equity, fair P/TBV is 3.50x on $116.46 tangible book, implying $407.40 per share.
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Financial statements were converted from PEN into USD using USDPEN at 0.2906 USD per PEN.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly