Banco Santander (Brasil) S.A.

AI-generated fair value estimate for this company.

Method: Residual-income-consistent dividend discount model: normalized EPS of $0.714 per ADR (TTM net income $2.67B / 3.74B ADR-equivalent shares); assumed sustainable ROE of 16% and 6% long-run USD-denominated earnings growth (reflecting Brazil's higher nominal growth/inflation environment) imply a 62.5% sustainable payout ratio; 13% cost of equity (Brazil sovereign and currency risk premium plus bank-sector risk); value = EPS1 x payout / (cost of equity - g) = $6.76 per ADR.

Reasoning: Banco Santander Brasil is a large NYSE-listed bank ADR (PE ~8x, ~5.1% dividend yield) operating in a high-nominal-growth but higher-risk Brazilian market, so a residual-income dividend discount model with an elevated cost of equity to reflect Brazil country/currency risk, offset by a correspondingly higher nominal earnings-growth assumption, is the most appropriate bank-specific valuation method.