Update shared on 01 Nov 2025
Fair value Decreased 8.18%Analysts have revised Raízen's fair value estimate downward by approximately R$0.18. They cite updated projections for revenue growth and a reduced discount rate in their latest evaluation.
What's in the News
- Raízen and Fomento Econ mico Mexicano, S.A. de C.V. amicably terminated their joint venture in Brazil, redistributing assets and allowing both firms to focus on separate retail strategies. Raízen retains all Shell Select convenience stores, while FEMSA keeps OXXO stores and the Cajamar distribution center. The transaction is cash neutral for both parties (Key Developments).
- Raízen S.A. has been added to the Brazil Small Cap Index (Key Developments).
- Raízen S.A. has been removed from the Brazil Mid-Large Cap Index (Key Developments).
Valuation Changes
- Fair Value Estimate: Lowered from R$2.16 to R$1.98, reflecting a downward revision in the company's valuation.
- Discount Rate: Reduced significantly from 27.29% to 21.45%, indicating an updated risk assessment.
- Revenue Growth: Changed from a projected increase of 3.58% to a decrease of 1.56% in the latest evaluation.
- Net Profit Margin: Increased slightly from 5.79% to 5.84%.
- Future P/E (Price-to-Earnings) Ratio: Decreased from 3.16x to 2.62x, suggesting a lower expected earnings multiple.
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