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Bradespar SA
BOVESPA:BRAP4

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Bradespar SA
BOVESPA:BRAP4
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Price: 22.94 BRL 1.46%
Market Cap: R$9B

P/FCFE

13
Current
45%
More Expensive
vs 3-y average of 9

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
13
=
Market Cap
R$9.6B
/
Free Cash Flow to Equity
R$691.7m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
13
=
Market Cap
R$9.6B
/
Free Cash Flow to Equity
R$691.7m

Valuation Scenarios

Bradespar SA is trading above its 3-year average

If P/FCFE returns to its 3-Year Average (9), the stock would be worth R$15.86 (31% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-35%
Maximum Upside
No Upside Scenarios
Average Downside
27%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 13 R$22.94
0%
3-Year Average 9 R$15.86
-31%
5-Year Average 8.5 R$14.98
-35%
Industry Average 9.9 R$17.43
-24%
Country Average 10.6 R$18.72
-18%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
BR
Bradespar SA
BOVESPA:BRAP4
9B BRL 13 8
ZA
Kumba Iron Ore Ltd
JSE:KIO
100.1B ZAR 6.4 6.9
BR
Vale SA
BOVESPA:VALE3
339.1B BRL 12.5 25.2
US
Nucor Corp
NYSE:NUE
51.5B USD -589.5 29.9
LU
ArcelorMittal SA
AEX:MT
37.5B EUR -37.5 13.7
AU
Fortescue Metals Group Ltd
ASX:FMG
60.5B AUD 10 11.2
AU
Fortescue Ltd
XMUN:FVJ
36.9B EUR 10.1 11.4
US
Steel Dynamics Inc
NASDAQ:STLD
33.1B USD 61.3 24.2
IN
JSW Steel Ltd
NSE:JSWSTEEL
3.1T INR 30.2 41.2
IN
Tata Steel Ltd
NSE:TATASTEEL
2.6T INR 88.4 28.7
KR
Posco Holdings Inc
KRX:005490
34.9T KRW 434.1 53.1

Market Distribution

In line with most companies in Brazil
Percentile
56th
Based on 332 companies
56th percentile
13
Low
0.1 — 7.9
Typical Range
7.9 — 17.3
High
17.3 —
Distribution Statistics
Brazil
Min 0.1
30th Percentile 7.9
Median 10.6
70th Percentile 17.3
Max 51 841.7

Bradespar SA
Glance View

Bradespar SA, a prominent name in the Brazilian investment landscape, operates not merely as a traditional investment holding company, but as a strategic player deeply intertwined with the country's industrial fabric. Emerging from the reorganization of Bradesco Group, Bradespar holds a significant stake in Vale SA, one of the world's largest mining companies. This stake is central to its operations, shaping both its strategic direction and financial performance. By leveraging its influence in Vale, Bradespar aligns its growth trajectory with the booming demand for minerals, especially iron ore, which is pivotal to countries undergoing rapid infrastructural development. Through dividends and capital appreciation from its equity investments, particularly in Vale, Bradespar generates substantial revenue, essential for its consolidation in the market. What sets Bradespar apart is its ability to navigate the ebb and flow of global commodities cycles, acting almost like a barometer for the Brazilian economy's health. As iron ore prices swell and recede, Bradespar's financial health echoes these shifts, making it a reflection of both opportunity and risk within the commodities realm. Unlike diversified conglomerates, Bradespar’s focused investment strategy allows it to concentrate expertise and resources on its core assets. This strategic concentration ensures that Bradespar isn't merely a passive shareholder, but an active participant aiming to enhance the value of its holdings. Financial maneuvering and prudent investment management maintain its position, allowing Bradespar to chart a course that capitalizes on Brazil's natural resource influence while maintaining the flexibility to adapt to economic shifts.

BRAP4 Intrinsic Value
13.54 BRL
Overvaluation 41%
Intrinsic Value
Price R$22.94
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