Is Banco Latinoamericano de Comercio Exterior SA overvalued or undervalued?

As of 24 February 2025, the valuation grade for Banco Latinoamericano de Comercio Exterior SA moved from fair to very attractive, indicating a strong improvement in its valuation outlook. The company appears undervalued, especially when considering its P/E ratio of 7, which is significantly lower than peers like Inter & Co., Inc. with a P/E of 18.88 and Nicolet Bankshares, Inc. at 15.08. Additionally, the PEG ratio of 0.45 further supports this undervaluation, suggesting that the stock is priced favorably relative to its growth prospects.
In comparison to its peers, Banco Latinoamericano's Price to Book Value stands at 1.09, while the industry average is not specified, indicating a competitive position. The company's return on equity (ROE) of 15.08% also highlights its efficiency in generating profits from shareholders' equity. Notably, Banco Latinoamericano has outperformed the S&P 500 over multiple periods, with a year-to-date return of 33.82% compared to the S&P 500's 12.22%, and a remarkable 5-year return of 268.42% versus 96.61% for the index, reinforcing its attractive valuation.