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Raia Drogasil SA
BOVESPA:RADL3

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Raia Drogasil SA
BOVESPA:RADL3
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Price: 21.94 BRL 2.28% Market Closed
Market Cap: R$38.4B

EV/IC

2.6
Current
18%
Cheaper
vs 3-y average of 3.1

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.6
=
Enterprise Value
R$45B
/
Invested Capital
R$17.7B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.6
=
Enterprise Value
R$45B
/
Invested Capital
R$17.7B

Valuation Scenarios

Raia Drogasil SA is trading below its 3-year average

If EV/IC returns to its 3-Year Average (3.1), the stock would be worth R$26.75 (22% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-75%
Maximum Upside
+28%
Average Downside
24%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2.6 R$21.94
0%
3-Year Average 3.1 R$26.75
+22%
5-Year Average 3.3 R$28.18
+28%
Industry Average 0.6 R$5.56
-75%
Country Average 0.8 R$6.61
-70%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close

Market Distribution

Higher than 92% of companies in Brazil
Percentile
92nd
Based on 496 companies
92nd percentile
2.6
Low
0 — 0.6
Typical Range
0.6 — 1
High
1 —
Distribution Statistics
Brazil
Min 0
30th Percentile 0.6
Median 0.8
70th Percentile 1
Max 36.6

Raia Drogasil SA
Glance View

Market Cap
38.4B BRL
Industry
Retail

Raia Drogasil SA, Brazil's pharmaceutical titan, stands as a testament to the transformative power of strategic mergers and innovative retail management. Born out of the merger of Drogasil and Droga Raia, two of Brazil's enduring pharmacy chains, the company today operates an extensive network of retail stores across the nation. This strategic merger in 2011 was not merely a consolidation of operations but a fusion of distinct corporate cultures and expertise, aimed at enhancing operational efficiencies and expanding market share. By leveraging economies of scale, Raia Drogasil has entrenched itself as a formidable force in Brazil's healthcare retail sector, boasting a strong presence in both high-density urban centers and emerging markets in Brazil. The company's business model is built on a robust mix of health and wellness products, encompassing everything from prescription medications to over-the-counter remedies and personal care items. Raia Drogasil has adeptly positioned itself to capitalize on Brazil's growing healthcare demands, thanks to its comprehensive product offerings and strategic store locations. Each store functions as both a destination for health-conscious consumers and a vital link in the greater logistical chain that ensures timely product availability. By intertwining brick-and-mortar retail with digital innovation, Raia Drogasil not only drives revenue through traditional sales channels but also through its dynamic e-commerce platform. This synergy allows the company to tap into the evolving preferences of tech-savvy consumers, thereby making Raia Drogasil a leader in seamlessly integrating shopping experiences that cater to modern customer expectations.

RADL3 Intrinsic Value
18.1 BRL
Overvaluation 18%
Intrinsic Value
Price R$21.94
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