Wednesday, July 27, 2011
ITUB3 - Itau
From Itau site I got the following numbers:
Avrg ROE last 10 Years: 28.5%
Avrg ROE last 3 Years: 23.0%
Let's be conservative and consider that Itau can maintain 20% profitability from here now on. As net equity amounts now for BRL 63.7 billions, earnings can be expected to be around 12.7 (last year was 13.3).
So, at current market value P/E is less than 10!
Would you bother to take a share in this excelent asset?
Using the same reasoning, BBDC3 would be trading now for 8.8 its earnings.
It's a matter of taste!
And BBAS3 for less than 7.0 (and I'm using ROE of 20%, although avrg ROE is over 25% since 2005).
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1 comments:
I think BBDC3 is the most interesting among the three. Bradesco has a strong insurance business and is not controlled by the government. Also, Bradesco has a long and good relationship with Banco do Brasil, that results in ELO and the sharing of ATMs.
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