The estimated intrinsic value of Banco Macro S.A. (BMA) using a Book Value × Return on Equity (P/B × ROE) model is $212.35 (based on the recommended P/B × ROE method), compared to the current stock price of $81.61. This suggests the stock may be undervalued by 160.2% relative to its intrinsic value.

For banks and financial institutions, traditional DCF models are unreliable because cash flows are heavily influenced by lending and deposit activities. Instead, SharesGrow uses a Book Value × ROE model: Intrinsic Value = Book Value Per Share × (Return on Equity ÷ Cost of Equity) × Growth Adjustment. This approach values the firm based on how efficiently it generates returns on shareholders' equity relative to its cost of capital — the standard methodology used by institutional investors for bank valuation.

The valuation uses a CAPM-derived discount rate of 4.62% (CAPM-derived from beta of 0.66). For comparison, the standard 20-year DCF model produces: Net Income (NI): $1,986,555.16.

• Negative or near-zero cash flow. The company is currently generating little or no Operating Cash Flow (OCF) or Free Cash Flow (FCF). A Discounted Cash Flow (DCF) model cannot produce a meaningful valuation when the starting cash flow is negative, while analysts may price in an expected turnaround or recovery in future cash flows.
• Using Trailing Twelve Months (TTM) data. Our model is using the most recent four quarters of data, which may not yet reflect the full earnings trajectory that analysts are forecasting. If the company is in a growth phase, TTM cash flows may understate future potential.