The Undervalued Opportunity in the Mexican Stock Exchange (BMV): A Strategic Play on Dual Listings and Economic Resilience

The Mexican Stock Exchange (BMV) has long been a cornerstone of Latin America’s financial landscape, but 2025 marks a pivotal inflection point. As global investors recalibrate portfolios amid shifting trade dynamics and nearshoring trends, the BMV’s dual-listed financial infrastructure companies are emerging as a compelling, undervalued opportunity. This analysis explores how Mexico’s strategic market reforms, coupled with valuation discrepancies between domestic and U.S. listings, create a unique window for investors seeking exposure to a high-growth emerging market.

Dual Listings: Bridging Markets and Valuations

The trend of dual listings—where Mexican firms trade on both the BMV and U.S. exchanges—is accelerating. According to a report by Bloomberg, four of the five companies in the BMV’s current IPO pipeline are considering dual listings, a strategy that allows firms to tap into the liquidity of U.S. markets while retaining domestic visibility [1]. This is particularly evident in sectors like telecommunications and retail, where giants such as América Móvil (AMX) and Fomento Económico Mexicano (FMX) are listed on both the BMV and the New York Stock Exchange (NYSE) [3].

Valuation gaps between these listings are striking. For instance, CEMEX (CEMEXCPO) saw a 21% surge in its BMV share price in Q3 2025, outpacing its NYSE counterpart [2]. The broader Mexican market, as measured by the S&P/BMV IPC index, has a trailing price-to-earnings (PE) ratio of 13.6x, significantly lower than the S&P 500’s 22x [4]. This discrepancy suggests that U.S. investors may be underestimating the growth potential of Mexican firms, particularly in infrastructure and financial services.

Economic Resilience: A Foundation for Growth

Mexico’s financial infrastructure firms are uniquely positioned to benefit from structural reforms and digital transformation. The BMV’s partnership with Nasdaq and Amazon Web Services (AWS) to modernize post-trade systems has enhanced operational efficiency and cybersecurity, aligning the exchange with global standards [5]. Additionally, the government’s “Plan México” initiative, launched in early 2025, aims to attract $50 billion in foreign direct investment (FDI) over six years by prioritizing sectors like logistics, energy, and fintech [6].

Regulatory reforms further bolster resilience. Mexico’s alignment with Basel III has strengthened capital adequacy for banks, while innovations like Open Banking and Banking as a Service (BaaS) are expanding financial inclusion. These factors create a stable environment for firms like Grupo México (GMBXF), which operates in mining, logistics, and transportation, and has a robust balance sheet with a net debt-to-EBITDA ratio of 0.1x [3].

Undervalued Opportunities: Case Studies

1. Fomento Económico Mexicano (FMX): Dual-listed on the BMV and NYSE, FMX is the largest Coca-Cola bottler in the world and a leader in convenience retail. Its trailing PE ratio of 32.09 on the NYSE contrasts with the BMV’s 13.6x average, suggesting potential undervaluation in U.S. markets [7].
2. Grupo México (GMBXF): With a market cap of $44.7 billion and a P/E ratio of 12.72, this diversified infrastructure giant has demonstrated resilience, even as its transportation division faced headwinds from the migrant crisis [3].
3. México Infrastructure Partners F1 (FEXI21): Though not NYSE-listed, this BMV-domiciled firm exemplifies the sector’s potential, with a market cap of MXN 21.03 billion and a dividend yield of 0.73% [8].

Risks and Mitigants

While Mexico’s economic resilience is strong, challenges persist. The World Bank projects GDP growth of 1.5% in 2025, revised downward due to U.S. tariff threats and inflationary pressures [9]. However, dual-listed firms benefit from cross-border diversification, reducing exposure to local volatility. For example, América Móvil’s international operations in Latin America and Europe provide a buffer against domestic economic slowdowns [3].

Conclusion: A Strategic Imperative

The BMV’s dual-listed financial infrastructure companies represent a rare convergence of undervaluation, growth potential, and economic resilience. As Mexico modernizes its financial systems and attracts nearshoring investments, these firms are poised to outperform. Investors who act now can capitalize on valuation gaps while positioning themselves for long-term gains in a market that is rapidly aligning with global standards.

Source:
[1] BMV Head Expects More Mexican Firms to Dual List in the US [https://www.bloomberg.com/news/articles/2025-09-04/bmv-head-expects-more-mexican-firms-to-dual-list-in-the-us]
[2] CEMEX. de (BMV:CEMEXCPO) stock performs better than ... [https://simplywall.st/stocks/mx/materials/bmv-cemex-cpo/cemex-de-shares/news/cemex-de-bmvcemexcpo-stock-performs-better-than-its-underlyi-1]
[3] Mexican Stocks List 2025 - Best Publicly Traded Companies [https://bullishbears.com/mexican-stocks/]
[4] Mexican (IPC) Market Analysis & Valuation - Updated Today [https://simplywall.st/markets/mx]
[5] Grupo BMV Partners with Nasdaq to Enhance Mexican Market Infrastructure [https://www.nasdaq.com/newsroom/grupo-bmv-partners-nasdaq-enhance-mexican-market-infrastructure]
[6] Mexican Government Releases "Plan México" | Insights [https://www.jonesday.com/en/insights/2025/02/mexican-government-releases-plan-mexico]
[7] Fomento Economico Mexicano S.A.B De C.V PE Ratio [https://macrotrends.net/stocks/charts/FMX/fomento-economico-mexicano-sab-de-cv/pe-ratio]
[8] BMV:FEXI21 Statistics [https://stockanalysis.com/quote/bmv/FEXI21/statistics/]
[9] Mexico's M&A revival faces uncertain future in 2025 [https://mergers.whitecase.com/highlights/mexicos-ma-revival-faces-uncertain-future-in-2025]