Banco Bilbao Vizcaya Argentaria, S.A.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$32.95
Market Price
$26.98
Undervalued By
18.1%
Method: Excess-return (residual income) bank model: $13.25 book value/ADR share (from P/B 2.14 and $28.36 price); 18.9% ROE (reported); 10% cost of equity (EM-exposed global bank); 4% long-run growth. Value = BVPS x (ROE-g)/(r-g).
Reasoning: BBVA is a genuine operating company - Banco Bilbao Vizcaya Argentaria's NYSE-listed sponsored ADR (1:1 ratio); its high, sustainable ROE (Q1'26 ROTE ~22%) driven by strong Mexico/Spain franchises justifies a residual-income premium-to-book valuation rather than a generic FCF DCF.