Stock fact sheet · data as of
Banco de Chile (BCH): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · Chile · ADR · Speculative / Distressed
Is BCH undervalued?
BCH has a margin of safety of 99%: the stock closed at 39.10 on 16 Oct 2026 against a GLS average fair value of 4,791.92. 6 of the 9 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.
There is a wide gap between Lynch (21.47) and DDM (29,421.36). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files BCH under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for BCH
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 | 35.39 | -9% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 123.90 | +217% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 62.42 | +60% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 21.47 | -45% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 95.56 | +144% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 13,129.83 | +33480% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 210.00 | +437% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 29,421.36 | +75146% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 27.33 | -30% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -79,696.71 | -203928% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 39.00 | -0% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Banco de Chile scores only 3 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. On durability BCH scores 6.2/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 5.9%, ROE 17.8%, ROA 2.2% - with debt at 2.03 times equity and a free-cash-flow yield of 1.7%. Debt of 2.03 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 5.22% (payout ratio 83%). 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. Revenue comes mainly from Retail Segment 100% (fiscal year FY2024).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | 5.9% |
|---|---|---|---|
| GLS Moat | 6.2 / 10 | ROE | 17.8% |
| Debt / equity | 2.03 | ROA | 2.2% |
| Free-cash-flow yield | 1.7% | Payout ratio | 83% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 45: Weak
With a Wheel Score of 45 Banco de Chile sits in the Weak band, capped at 45 because the engine files it as Speculative / Distressed. The parts - Value 25/25, Health 7/20, Moat 9/15, Premium 20/20, Stability 16/20 - show where: Health (7/20) scores lowest.
Implied volatility is 41% 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. Chain open interest is thin - 1,495 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 392k shares a day on a market cap of $19.7B, with a beta of 0.12 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 99% margin of safety | |
| Health | 7 / 20 | Piotroski 3/9 | |
| Moat | 9 / 15 | moat 6.2/10 | |
| Premium | 20 / 20 | implied volatility 41% | |
| Stability | 16 / 20 | 392k shares/day, $19.7B cap, beta 0.12 |
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 de Chile reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
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 de Chile 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 |
|---|---|---|---|---|---|
| KEY KeyCorp | 19.94 | 26.98 | +26% | 80Prime | $21.5B |
| FCNCO First Citizens BancShares, Inc. | 18.40 | 2,871.18 | +99% | 39No options | $22.2B |
| FCNCB First Citizens BancShares, Inc. | 1,680.00 | 5,724.12 | +71% | 39No options | $22.4B |
| EWBC East West Bancorp, Inc. | 126.26 | 179.24 | +30% | 88Prime | $17.3B |
| RF Regions Financial Corporation | 26.89 | 34.44 | +22% | 87Prime | $22.9B |
| CIB Grupo Cibest S.A. | 97.65 | 164,799.35 | +100% | 90Prime | $23.1B |
| FCNCN First Citizens BancShares, Inc. Depositary Shares, each representing a 1/40th interest in a share of 6.625% Non-Cumulative Perpetual Preferred Stock, Series E | 22.96 | 2,881.25 | +99% | 39No options | $23.2B |
| FCNCP First Citizens BancShares, Inc. | 17.60 | 2,869.41 | +99% | 39No options | $23.5B |
| FCNCA First Citizens BancShares, Inc. | 2,097.20 | 6,195.01 | +66% | 79Good | $23.7B |
| BSAC Banco Santander-Chile | 32.82 | 2,521.93 | +99% | 81Prime | $15.5B |
| CFG Citizens Financial Group, Inc. | 63.43 | 89.86 | +29% | 86Prime | $26.7B |
| PNFP Pinnacle Financial Partners, Inc. | 92.85 | 178.16 | +48% | 84Prime | $14.0B |
⚖ Compare BCH with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about BCH
Is BCH undervalued right now?
By the GLS models, yes: at 39.10 the stock is 99% below the average fair value of 4,791.92 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of BCH and what does it mean?
BCH scores 45 out of 100 (Weak). 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 BCH?
4,791.92 per share as of 16 Oct 2026 - the simple average of the 9 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 de Chile report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does BCH have listed options, and how liquid are they?
Yes. The nightly snapshot found 90 listed contracts with 1,495 open interest across all expiries and implied volatility of 41% 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.