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Julius Baer Gruppe AG BAER

Rating as of

Morningstar’s Analysis

Valuation
Currency in CHF
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Increasing Julius Baer’s FVE to CHF 69 From CHF 57, Modeling Higher Assets Under Management

Johann Scholtz, CFA Equity Analyst

Analyst Note

| Johann Scholtz, CFA |

After updating our model, we increase our fair value estimate for Julius Baer to CHF 69 per share from CHF 57 per share previously. We keep our wide economic moat rating. On a midcycle basis we estimate that Julius Baer can generate a return on tangible equity of 20%, comfortably ahead of the 8% we estimate for its cost of capital.

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Company Profile

Business Description

Julius Baer was founded in 1890 and expanded significantly in 2005 when it acquired three Swiss private banks and Global Asset Management, or GAM, from its far larger Swiss rival, UBS. In 2009 Baer spun off GAM as a separately listed firm. The acquisition of Merril Lynch's wealth management operations outside of the U.S. in 2012 increased Baer's assets under management by 40% and increased its footprint outside of Europe. Julius Baer is currently the largest pure-play private bank in Switzerland and the third-largest Swiss private bank. Baer provides private banking services principally to individuals in Switzerland and Europe and increasingly in Asia and other emerging markets.

Contact
Bahnhofstrasse 36
Zurich, 8010, Switzerland
T +41 588881111
Sector Financial Services
Industry Asset Management
Most Recent Earnings
Fiscal Year End Dec 31, 2021
Stock Type
Employees 6,667

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