Banco Santander-Chile

AI-generated fair value estimate for this company.

Method: Residual-income-consistent dividend discount model: normalized EPS of $2.564 per ADR (TTM net income $1.22B / ~475.8M ADR-equivalent units implied by market cap / price); assumed sustainable ROE of 18% (in line with Chilean banks' historically high returns on equity) and 4.5% long-run earnings growth imply a 75% sustainable payout ratio; 10.5% cost of equity (Chile country-risk premium over USD risk-free plus bank-sector risk); value = EPS1 x payout / (cost of equity - g) = $33.49 per ADR.

Reasoning: Banco Santander-Chile is a large, well-covered NYSE-listed bank ADR with strong, consistently reported profitability (recent 'strong financial results' commentary), so a bank-appropriate residual-income dividend discount model using a high but realistic sustainable ROE and Chile-specific cost of equity is more reliable than a generic corporate DCF for valuing a lending institution.