Braskem SA
BOVESPA:BRKM5

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Braskem SA
BOVESPA:BRKM5
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Price: 8.44 BRL -1.63% Market Closed
Market Cap: R$6.7B

EV/GP

13.3
Current
1%
Cheaper
vs 3-y average of 13.4

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
13.3
=
Enterprise Value
R$68.3B
/
Gross Profit
R$5.1B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
13.3
=
Enterprise Value
R$68.3B
/
Gross Profit
R$5.1B

Valuation Scenarios

Braskem SA is trading below its 3-year average

If EV/GP returns to its 3-Year Average (13.4), the stock would be worth R$8.52 (1% upside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-63%
Maximum Upside
+1%
Average Downside
18%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 13.3 R$8.44
0%
3-Year Average 13.4 R$8.52
+1%
5-Year Average 12 R$7.6
-10%
Industry Average 13.3 R$8.42
0%
Country Average 4.9 R$3.11
-63%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
P/E Multiple
Earnings Growth PEG
BR
Braskem SA
BOVESPA:BRKM5
Average P/E: 83.3
Negative Multiple: -1.2
N/A N/A
SA
Saudi Basic Industries Corporation SJSC
SAU:2010
Negative Multiple: -8.8 N/A N/A
ID
Chandra Asri Pacific PT Tbk
OTC:PTPIF
41.8
N/A N/A
ID
Chandra Asri Petrochemical Tbk PT
IDX:TPIA
26
N/A N/A
US
Dow Inc
NYSE:DOW
Negative Multiple: -10.3 N/A N/A
UK
LyondellBasell Industries NV
NYSE:LYB
Negative Multiple: -30.6 N/A N/A
TW
Nan Ya Plastics Corp
TWSE:1303
157.1
138%
1.1
CN
Hengli Petrochemical Co Ltd
SSE:600346
17
N/A N/A
KR
LG Chem Ltd
KRX:051910
Negative Multiple: -17.1 N/A N/A
CN
Rongsheng Petrochemical Co Ltd
SZSE:002493
176.8
82%
2.2
CN
G
Guangzhou Tinci Materials Technology Co Ltd
SZSE:002709
81
92%
0.9

Market Distribution

Higher than 90% of companies in Brazil
Percentile
90th
Based on 434 companies
90th percentile
13.3
Low
0.3 — 3.1
Typical Range
3.1 — 6.9
High
6.9 —
Distribution Statistics
Brazil
Min 0.3
30th Percentile 3.1
Median 4.9
70th Percentile 6.9
Max 121

Braskem SA
Glance View

Market Cap
6.7B BRL
Industry
Chemicals

Braskem SA stands as a dynamic force in the global petrochemical industry, emerging from a robust foundation in Brazil's industrial landscape. Formed in 2002 through the strategic merger of six chemical companies linked to Odebrecht and the Mariani Group, Braskem leveraged the combined expertise and resources of its predecessors to scale rapidly. The company's operations are deeply integrated across the petrochemical value chain. By transforming raw materials like ethylene and propylene into a diverse array of thermoplastics, Braskem taps into various industry needs, ranging from packaging solutions to automotive components. Its production facilities, strategically located near sources of raw materials, allow for efficient conversion and logistics, reinforcing its position in the Americas and beyond. Braskem's growth narrative is marked by its innovative approach to sustainability, particularly through its ambitious investments in bio-based ethylene derived from sugarcane. This “green” polyethylene, a pioneering move in the industry, not only caters to environmentally conscious markets but also positions the company as a leader in sustainable practices. Financially, Braskem's revenue streams are diversified through its international presence, with a significant portion derived from exports, benefiting from a competitive cost structure thanks largely to Brazil's abundant raw material resources. By continually refining its production processes and expanding its portfolio of high-value-added products, Braskem not only maintains its market relevance but also ensures a steady flow of revenue across different economic cycles.

BRKM5 Intrinsic Value
70.8 BRL
Undervaluation 88%
Intrinsic Value
Price R$8.44
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