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Recent share performance and business scale
Banco Bilbao Vizcaya Argentaria (BME:BBVA) has drawn investor attention after a period of mixed share performance, with the stock down about 4% over the past month and roughly 1% over the past 3 months.
Over longer horizons, the total return is about 47% over the past year, roughly 2.4x over 3 years and about 3.7x over 5 years. This gives investors a sense of how recent moves compare with its multi year track record.
The bank reports annual revenue of approximately €32,611.0m and net income of about €10,405.0m, with annual revenue growth of 9.16% and net income growth of 5.78%, indicating a sizeable and profitable business.
BBVA’s operations are diversified across several regions, including Spain, Mexico, Turkey and South America. This can matter for how you think about risk, currency exposure and the sources of future earnings.
See our latest analysis for Banco Bilbao Vizcaya Argentaria.
At a share price of €18.875, BBVA has eased in the short term, with the share price down 4.45% over the past month. Its 1 year total shareholder return of 46.75% points to strong longer term momentum that recent weakness has cooled.
If BBVA’s recent pullback has you thinking about where else capital might work hard, it could be a good moment to scan for other robust financials using our 99 top founder-led companies
So with BBVA’s share price easing recently, yet the stock still up strongly over the past year and trading below some valuation estimates, should you see this as an undervalued entry point or a sign markets already expect more growth?
Most Popular Narrative: 10% Undervalued
The most followed narrative sees Banco Bilbao Vizcaya Argentaria trading below an estimated fair value of €20.97, compared with the latest close at €18.88. It builds a detailed case around earnings power, capital returns and regional exposure.
BBVA is well-positioned to benefit from the continued expansion of the middle class and rising financial inclusion in high-growth emerging markets like Mexico and Turkey, fueling sustained loan growth and fee-generating activity, positively impacting top-line revenue and long-term earnings potential.
Curious what earnings path is baked into that fair value, or how margins and future P/E assumptions fit together? The narrative spells out a tight set of revenue, profit and valuation targets that you may want to test against your own views.
Result: Fair Value of €20.97 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this depends on emerging market exposure not being hit by political or currency shocks, and on digital investments avoiding costly execution setbacks.
Find out about the key risks to this Banco Bilbao Vizcaya Argentaria narrative.
Next Steps
With both risks and rewards in play, does the current narrative fully align with how you see BBVA’s outlook and risk profile? Act while the data is fresh in mind by reviewing the 4 key rewards and 3 important warning signs
Looking for more investment ideas?
If BBVA has sharpened your focus on quality opportunities, do not stop here. Broaden your watchlist now so you are not late to the next idea.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BBVA.MC.
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