Julius Bär BAER.SW
What does Julius Bär do?
Julius Baer is a Swiss bank headquartered in Zurich that specializes in wealth management for affluent private clients. Its offering includes investment advice and discretionary mandates, securities trading and advisory, structured products, and access to funds and private market investments. In addition, the group offers wealth planning, family office services and lending solutions, such as Lombard loans and mortgages.
Sources of income are mainly recurring fees on assets under management, transaction-based income from trading and product business, and net interest income from lending and deposit business. The company has an international footprint, with client relationships in Switzerland, Europe, Asia and the Americas. In terms of competition, Julius Baer positions itself as a pure-play wealth manager without investment banking and with an open product platform. Competitors are large universal banks with private banking divisions as well as specialized private banks and independent asset managers.
Score profile
Rank vs. Asset Management (35 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Julius Bär ranks in the middle in the group Asset Management (5.1/10). On growth, the company ranks among the best in the group Asset Management (8.1/10). On valuation (higher = cheaper), the stock ranks above average in the group Asset Management (6.7/10). On financial strength, Julius Bär ranks above average in the group Asset Management (6.1/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 11.4x | 12.0x | better than 60 % |
| Trailing P/E | 12.9x | 14.2x | better than 69 % |
| PEG ratio | 0.8x | 1.1x | better than 72 % |
| Price/sales | 3.5x | 3.5x | better than 50 % |
| Price/book | 2.0x | 3.2x | better than 71 % |
| Revenue growth | 25.7% | 9.8% | better than 81 % |
| Earnings growth | 127.5% | 6.2% | better than 81 % |
| Gross margin | 0.0% | 49.8% | better than 9 % |
| Operating margin | 39.0% | 33.5% | better than 72 % |
| Net margin | 27.0% | 21.0% | better than 72 % |
| Return on equity | 16.2% | 16.2% | better than 50 % |
| Debt/equity | 0.0% | 42.6% | better than 96 % |
| Free cash flow yield | 0.0% | 3.6% | better than 25 % |
| Dividend yield | 3.6% | 2.8% | – |
| Payout ratio | 46.9% | 41.6% | – |
| Beta | 0.83 | 1.20 | – |
Valuation: what is Julius Bär worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Julius Bär a model range of 75.06 CHF to 113.36 CHF per share.
17 analysts, average rating “Buy”, average price target 77.03 CHF (+7.7%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The level and development of client assets under management, which depend on net new money inflows and market performance, determine fee income.
- Client activity in the financial markets influences trading and product income as well as demand for advice.
- The level of interest rates affects net interest income from deposits and loans, and cost efficiency affects profitability.
Risks
- Market declines reduce the value of assets under management and thus directly the fee-based income.
- Credit defaults on concentrated Lombard or real estate financing can cause impairments and damage reputation.
- Strict regulation, compliance and legal risks in cross-border business, as well as the loss of client advisors, can impair the business.
What to look for with Julius Bär
The gross margin on assets under management together with the cost/income ratio shows how profitably the company converts client assets into income and profit.