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Bradespar SA
BOVESPA:BRAP3

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Bradespar SA
BOVESPA:BRAP3
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Price: 19.41 BRL -3.58% Market Closed
Market Cap: R$8.1B

EV/FCFF

12.7
Current
53%
More Expensive
vs 3-y average of 8.3

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
12.7
=
Enterprise Value
R$9.1B
/
Free Cash Flow to Firm
R$691.7m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
12.7
=
Enterprise Value
R$9.1B
/
Free Cash Flow to Firm
R$691.7m

Valuation Scenarios

Bradespar SA is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (8.3), the stock would be worth R$12.69 (35% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-35%
Maximum Upside
+24%
Average Downside
10%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 12.7 R$19.41
0%
3-Year Average 8.3 R$12.69
-35%
5-Year Average 8.2 R$12.52
-35%
Industry Average 15.7 R$24.01
+24%
Country Average 13.4 R$20.48
+6%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
BR
Bradespar SA
BOVESPA:BRAP3
9.3B BRL 12.7 8.3
ZA
Kumba Iron Ore Ltd
JSE:KIO
98.3B ZAR 4.9 6.7
BR
Vale SA
BOVESPA:VALE3
360.2B BRL 24.6 24.6
US
Nucor Corp
NYSE:NUE
50.9B USD -293.7 29.3
AU
Fortescue Metals Group Ltd
ASX:FMG
61.9B AUD 11.3 11.3
AU
Fortescue Ltd
XMUN:FVJ
37.9B EUR 11.5 11.7
LU
ArcelorMittal SA
AEX:MT
37.3B EUR 102.9 13.6
IN
JSW Steel Ltd
NSE:JSWSTEEL
3.1T INR 25.3 41.7
US
Steel Dynamics Inc
NASDAQ:STLD
32.5B USD 54.3 23.7
IN
Tata Steel Ltd
NSE:TATASTEEL
2.7T INR 20.8 29.4
KR
Posco Holdings Inc
KRX:005490
35.5T KRW -26.8 53.7

Market Distribution

In line with most companies in Brazil
Percentile
39th
Based on 365 companies
39th percentile
11
Low
0.2 — 8.2
Typical Range
8.2 — 24.4
High
24.4 —
Distribution Statistics
Brazil
Min 0.2
30th Percentile 8.2
Median 13.4
70th Percentile 24.4
Max 1 667.2

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.

BRAP3 Intrinsic Value
18.67 BRL
Overvaluation 4%
Intrinsic Value
Price R$19.41
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