Banco de Chile (BCH)
Valuation Overview•Is Banco de Chile Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Moderate quality score of 47/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is cautious, forecasting potential downside with steady expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
BCH demonstrates strong business quality with robust profitability and healthy margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 50.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $30.3B | -34.9% | — | — | +2.6% | |
| EBITDA | $363.4B | — | -4.0% | — | — | |
| Net Income | $265.5B | -4.5% | -6.2% | — | +6.9% | |
| EPS (Diluted) | $524.00 | -1.3% | -6.2% | +24.3% | +7.0% | |
| Free Cash Flow | -$753.0B | +16.3% | +106.0% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 87.4% | 66.5% | 64.6% | 62.5% |
| Operating Margin | 50.0% | 39.1% | 38.8% | 33.1% |
| Net Margin | 39.4% | 31.1% | 31.1% | 26.6% |
| FCF Margin | -14.4% | 18.3% | 30.6% | 8.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.58 | $0.60 | +3.4% | ||
| Q1'26 | $0.60 | $0.58 | -3.3% | ||
| Q4'25 | $0.62 | $0.60 | -3.2% | ||
| Q3'25 | $0.63 | $0.64 | +1.6% | ||
| Q2'25 | $0.58 | $0.97 | +67.2% | ||
| Q1'25 | $0.65 | $0.59 | -9.2% | ||
| Q4'24 | $0.65 | $0.61 | -6.2% | ||
| Q3'24 | $0.65 | $0.69 | +6.2% |
Total return is +43.6% (1Y), outperforming the benchmark by +18.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +11.0% | +1.7% | — |
| 1Y | +43.6% | +18.6% | +7.4% |
| 3YCAGR | +30.6% | +11.1% | +28.5% |
| 5YCAGR | +20.2% | +7.3% | +47.2% |
| 10YCAGR | +10.9% | -2.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Banco de Chile (BCH) valuation, health, and returns.
Banco de Chile is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -30.6% downside from DCF intrinsic value of $27.92)
Banco de Chile has multiple valuation anchors: DCF Intrinsic Value: $27.92 | Peer Relative Fair Value: $17387.11 | Wall Street Analyst Target: $37.50 (implying -6.7% upside). A convergence of these signals offers higher conviction.
Banco de Chile displays fair financial health with a composite quality score of 47/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 6.3%.
Banco de Chile pays a 5.2% dividend yield, covered by a 79% payout ratio with 1 years of growth, supplemented by a 0.0% buyback yield.
Banco de Chile's current growth trajectory is Decelerating. The company achieved -34.9% 1Y revenue growth and -1.3% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 9 analysts, beating EPS expectations in 58% of recent quarters with a 1-quarter streak. The consensus price target represents a -6.7% change from current levels.
Investment risks for Banco de Chile include: -24.6% 1-year max drawdown. Volatility risk is characterized by a beta of 1.16x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.