BRF SA
BOVESPA:BRFS3

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BRF SA
BOVESPA:BRFS3
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Price: 17.95 BRL -5.38% Market Closed
Market Cap: R$28.6B

EV/OCF

2.8
Current
44%
Cheaper
vs 3-y average of 5

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
2.8
=
Enterprise Value
R$35.5B
/
Operating Cash Flow
R$12.8B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
2.8
=
Enterprise Value
R$35.5B
/
Operating Cash Flow
R$12.8B

Valuation Scenarios

BRF SA is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (5), the stock would be worth R$31.99 (78% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+219%
Average Upside
123%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 2.8 R$17.95
0%
3-Year Average 5 R$31.99
+78%
5-Year Average 6.7 R$43.03
+140%
Industry Average 4.3 R$27.65
+54%
Country Average 8.9 R$57.25
+219%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
BR
BRF SA
BOVESPA:BRFS3
28.8B BRL 2.8 8
JP
Goyo Foods Industry Co Ltd
TSE:2230
53.2T JPY 324 870.4 540 752.8
CH
Nestle SA
SIX:NESN
205.8B CHF 15.7 23.2
US
Mondelez International Inc
NASDAQ:MDLZ
73.8B USD 20.3 30.1
FR
Danone SA
PAR:BN
43.3B EUR 13 23.8
ZA
Tiger Brands Ltd
JSE:TBS
48.7B ZAR 19.4 12.8
US
Hershey Co
NYSE:HSY
38.8B USD 18.8 44
CN
Muyuan Foods Co Ltd
SZSE:002714
237.6B CNY 13.3 24.3
CN
Foshan Haitian Flavouring and Food Co Ltd
SSE:603288
231.2B CNY 25.4 32.8
ZA
Avi Ltd
JSE:AVI
32.7B ZAR 10.7 12.7
CH
Chocoladefabriken Lindt & Spruengli AG
SIX:LISN
23.8B CHF 47.2 32.4

Market Distribution

Lower than 95% of companies in Brazil
Percentile
5th
Based on 434 companies
5th percentile
2.8
Low
0.2 — 5.8
Typical Range
5.8 — 12.8
High
12.8 —
Distribution Statistics
Brazil
Min 0.2
30th Percentile 5.8
Median 8.9
70th Percentile 12.8
Max 3 401.7

BRF SA
Glance View

Market Cap
28.6B BRL
Industry
Food Products

BRF SA, a powerhouse in the global food industry, is a Brazilian multinational company that has cultivated a robust presence in the production and distribution of fresh and processed foods. Founded through the merger of notable Brazilian food companies Sadia and Perdigão, BRF's core business revolves around poultry, pork, and processed food products. It operates across the entire supply chain, from animal feed production, farming, and meat processing to branding and retail marketing. The company's integration strategy allows it to maintain stringent control over quality and cost, ensuring efficiency and meeting consumer demand with precision. Through innovation, BRF constantly looks for ways to diversify its product portfolio, focusing on both traditional and value-added products that cater to a wide array of tastes and dietary preferences worldwide. In the bustling global marketplace, BRF carves its niche by leveraging Brazil’s rich agricultural resources and strategic geographic location, facilitating smoother export channels. The company has a significant stake in not just the Brazilian market but extends its reach globally, with a firm foothold in numerous international markets across the Middle East, Asia, Europe, and the Americas. Revenue streams are bolstered by the combination of its robust domestic operations and its strategic international partnerships, including joint ventures that enhance distribution capabilities. As a global entity, BRF consistently invests in research and development to adapt to the ever-evolving consumer preferences, ensuring that sustainability and innovation remain at the forefront of its operational ethos. This adaptability and resourcefulness underpin BRF's enduring success in the competitive global food sector.

BRFS3 Intrinsic Value
21.62 BRL
Undervaluation 17%
Intrinsic Value
Price R$17.95
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