Stock fact sheet · data as of
Banco Bradesco S.A. (BBD): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · Brazil · ADR · High Growth
Is BBD undervalued?
BBD has a margin of safety of 91%: the stock closed at 4.03 on 16 Oct 2026 against a GLS average fair value of 44.33. 8 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 8 models disagree widely: Lynch gives 4.04 while 10 Cap gives 205.95. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files BBD under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for BBD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 28.23 | +601% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 11.93 | +196% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 4.04 | +0% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 29.63 | +635% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 205.95 | +5010% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 47.92 | +1089% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 21.60 | +436% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 5.38 | +33% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -175.65 | -4459% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 4.05 | +0% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - BBD passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 6.4 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are thin or negative - ROIC 2.4%, ROE 13.3%, ROA 1.0% - with debt at 4.45 times equity and a free-cash-flow yield of 55.6%. Debt of 4.45 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is high at 8.09% (payout ratio 49%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 1/10, insider activity 9/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 29 Sep 2026.
| Piotroski F-score | 5 / 9 | ROIC | 2.4% |
|---|---|---|---|
| GLS Moat | 6.4 / 10 | ROE | 13.3% |
| Debt / equity | 4.45 | ROA | 1.0% |
| Free-cash-flow yield | 55.6% | Payout ratio | 49% |
| Institutions | 1 / 10 | Insiders · Congress | 9 · 5 / 10 |
Wheel Score 86: Prime
BBD scores 86 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (11/20), the GLS moat (10/15), the option premium on offer (20/20) and how easily the stock trades (20/20).
Implied volatility is 57% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 257,109 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 41.8M shares a day on a market cap of $43.5B, with a beta of 0.23 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 91% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 10 / 15 | moat 6.4/10 | |
| Premium | 20 / 20 | implied volatility 57% | |
| Stability | 20 / 20 | 41.8M shares/day, $43.5B cap, beta 0.23 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Banco Bradesco S.A. reports earnings on 22 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 5 Nov 2026 (0.0024 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to Banco Bradesco S.A. by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BSBR Banco Santander (Brasil) S.A. | 5.59 | 22.36 | +75% | 71Good | $41.9B |
| KB KB Financial Group Inc. | 117.88 | 54,728.61 | +100% | 79Good | $41.7B |
| FITB Fifth Third Bancorp | 50.35 | 64.33 | +22% | 82Prime | $45.7B |
| BBDO Banco Bradesco S.A. | 3.59 | 42.28 | +92% | 39No options | $40.1B |
| FITBI Fifth Third Bancorp | 25.36 | 45.99 | +45% | 39No options | $50.5B |
| NWG NatWest Group plc | 17.47 | 60.29 | +71% | 84Prime | $34.7B |
| HBANL Huntington Bancshares Incorporated | 24.82 | 22.07 | -12% | 39No options | $34.2B |
| TFC Truist Financial Corporation | 45.57 | 84.17 | +46% | 85Prime | $55.7B |
| HBANZ Huntington Bancshares Incorporated | 18.56 | 16.29 | -14% | 25No options | $33.4B |
| SHG Shinhan Financial Group Co., Ltd. | 70.71 | 123,755.24 | +100% | 85Prime | $33.3B |
| MTB M&T Bank Corporation | 218.65 | 334.98 | +35% | 83Prime | $31.6B |
| HBANM Huntington Bancshares Incorporated | 19.48 | 19.52 | +0% | 39No options | $31.1B |
⚖ Compare BBD with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about BBD
Is BBD undervalued right now?
By the GLS models, yes: at 4.03 the stock is 91% below the average fair value of 44.33 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of BBD and what does it mean?
BBD scores 86 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for BBD?
44.33 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Banco Bradesco S.A. report earnings next?
The next earnings report is due on 22 Oct 2026 (after the close), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does BBD have listed options, and how liquid are they?
Yes. The nightly snapshot found 240 listed contracts with 257,109 open interest across all expiries and implied volatility of 57% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.