As of 2025-05-21, the Fair Value of Banco BPM SpA (BAMI.MI) is 46.66 EUR. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 9.97 EUR, the upside of Banco BPM SpA is 367.9%.

Is BAMI.MI a good investment?

With the market price of 9.97 EUR and our fair value calculation, Banco BPM SpA (BAMI.MI) is a good investment. Investing in BAMI.MI stocks now will result in a potential gain of 367.9%.

9.97 EUR

Stock Price

46.66 EUR

Fair Price

FAIR VALUE CALCULATION

BAMI.MI Fair Value

Peter Lynch's formula is:

BAMI.MI Fair Value

= Earnings Growth Rate x TTM EPS

BAMI.MI Fair Value

= 25 x 1.87

BAMI.MI Fair Value

= 46.66

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

	Historical Earnings

	12-2020	12-2021	12-2022	12-2023	12-2024	5Y Avg
Net income	20.9	569.1	685.05	1,264.45	1,920.39	892
YoY growth	-97.4%	2623%	20.4%	84.6%	51.9%	536.5%

BAMI.MI Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
Banco BPM SpA	15,109	1.9	46.66	367.9%
AIB Group plc	15,624	1	10.2	52%
Santander Bank Polska SA	52,689	52.7	1,316.57	155.3%
Bank of Ireland Group PLC	11,613	1.6	7.81	-34.1%
Bper Banca SpA	10,833	1	24.41	220.4%
Eurobank Ergasias Services and Holdings SA	9,791	0.4	1.97	-26.1%
Banco Comercial Portugues SA	9,603	0.1	1.5	136%
National Bank of Greece SA	9,467	1.2	30.09	190.7%
Alpha Bank SA	6,308	0.4	1.84	-31.3%
Virgin Money UK PLC	2,819	23.3	582.89	167.9%

BAMI.MI Fair Value - Key Data

Market Cap (mil)	15,109
P/E	5.3x
Forward P/E	7.8x

EPS	1.87
Avg earnings growth rate	536.5%
TTM earnings	2,828

BAMI.MI Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.