About CREDICORP LTD
Credicorp Ltd., a financial service holding company, provides various financial, insurance, and health services and products primarily in Peru and internationally. The company's Universal Banking segment offers deposits and current accounts, and various credits and financial instruments to individuals and legal entities. Its Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transportation, marine vessels, automobile, life, health, and pensions, as well as provides private pension fund management services.
The company's Microfinance segment manages loans, credits, deposits, and current accounts of the small and microenterprises. Its Investment Banking and Wealth Management segment offers its services to corporations, institutional investors, governments, and foundations; engages in structuring and placement of issues in the primary market, as well as the execution and negotiation of operations in the secondary market; and structures securitization processes for corporate customers and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.
BAP operates in the Finance, Insurance, And Real Estate | Banking | approximately 37,000 employees | led by CEO Gianfranco Piero Ferrari de las Casas.
The $12.2B question: What happens when a company this good becomes this expensive?
On Wall Street, there are companies that move money, and then there are companies that are the money. CREDICORP LTD falls squarely into the latter category — a financial infrastructure so embedded in the global economy that to bet against it feels almost like betting against commerce itself.
At $12.2B in market capitalization, CREDICORP LTD (BAP) currently ranks #232 in our quantitative model, with a composite score of 76.0/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives BAP the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 37/100 | 30% | Moderate |
| Value | 85/100 | 15% | Attractive |
| Momentum | 93/100 | 25% | Accelerating |
| Investment | 38/100 | 10% | Low |
| Stability | 85/100 | 10% | Fortress |
| Short Interest | 49/100 | 10% | Normal |
The quality score of 37/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 8.6%
- Net Margin: 27.0%
- Gross Margin: N/A
These aren't just good numbers. They're the kind of numbers that make BAP a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like BAP."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. BAP is quality defined.
- Momentum is real. With a momentum score of 93/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 9.5x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
CREDICORP LTD is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, BAP is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 76.0/100 | Rank: #232 of 3,571 stocks
Sector: Financials
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.