Is Credicorp (NYSE:BAP) Undervalued Following Stronger Earnings Growth?
Why Credicorp’s latest earnings matter for investors
Credicorp (BAP) released second quarter and first half 2026 results on 13 August, highlighting year over year growth in net interest income and net income that points to stronger profitability versus the prior period.
See our latest analysis for Credicorp.
The share price of Credicorp has eased in the very short term, with a 1 day share price return that declined 2.09% and a 30 day share price return that fell 3.15%. However, the 90 day share price return of 19.79%, year to date share price return of 32.08%, and 1 year total shareholder return of 56.64% point to positive momentum that builds over longer periods.
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Credicorp’s earnings and strong longer term share price run set the stage for a simple question: Is most of the easy upside already in the rear view mirror, or does the current valuation still leave meaningful room ahead?
Most Popular Narrative: 6.5% Undervalued
Credicorp’s most followed narrative places fair value at $404.48 compared with the last close of $378.28, which implies some upside still embedded in the model.
Ongoing investments in digital platforms, AI, and end to end automation are boosting operational efficiency, enabling scalable service delivery with lower marginal costs, which is expected to further improve the group's net margin as revenue from digital channels grows.
Want a clearer picture of why this narrative still sees upside for Credicorp at today’s price? The core hinges on faster revenue expansion and firm margins working together with a future earnings multiple that assumes investors continue to pay up for that profile.
Result: Fair Value of $404.48 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the Credicorp narrative could be tested if Peru’s political or regulatory backdrop worsens, or if rapid Yape lending growth weakens asset quality and margins.
Find out about the key risks to this Credicorp narrative.
Another view on Credicorp’s valuation
The first fair value estimate for Credicorp leans on detailed future earnings assumptions and arrives at a price of $404.48, which suggests the stock is undervalued versus the last close of $378.28.
On a simple P/E basis the picture is less clear. Credicorp trades at 13.8x earnings, which is richer than the US Banks industry on 12.1x but below a peer average of 16.9x. It also sits under a fair ratio of 16.1x that our work suggests the market could move toward over time. For investors, that mix hints at some upside but also points to the risk that the P/E could compress toward the industry level instead. Which outcome feels more realistic given your own expectations for Credicorp’s growth and risk profile?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Given the mix of optimism and caution around Credicorp today, it makes sense to move quickly and test the numbers yourself. To weigh both sides of the story and see what stands out most to you, start with 3 key rewards and 3 important warning signs.
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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.
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