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Brazilian (BOVESPA) Market Analysis & Valuation
UpdatedDec 23, 2024
DataAggregated Company Financials
Companies343
- 7D-2.1%
- 3M-8.5%
- 1Y-11.7%
- YTD-11.7%
Over the last 7 days, the market has dropped 2.1%, driven by a pullback of 5.3% in the Industrials sector. In the last 12 months the market is down 12%. Earnings are forecast to grow by 13% annually.
Market Valuation and Performance
Has the Brazilian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 23 Dec 2024 | R$4.2t | R$4.6t | R$481.2b | 8.4x | 8.7x | 0.9x |
| Wed, 20 Nov 2024 | R$4.4t | R$4.6t | R$478.1b | 9.3x | 9.2x | 1x |
| Fri, 18 Oct 2024 | R$4.5t | R$4.4t | R$428.9b | 9.7x | 10.5x | 1x |
| Sun, 15 Sep 2024 | R$4.7t | R$4.4t | R$427.1b | 10.5x | 10.9x | 1.1x |
| Tue, 13 Aug 2024 | R$4.6t | R$4.4t | R$421.4b | 10.4x | 10.8x | 1x |
| Thu, 11 Jul 2024 | R$4.4t | R$4.3t | R$446.4b | 9.9x | 9.9x | 1x |
| Sat, 08 Jun 2024 | R$4.3t | R$4.4t | R$447.0b | 9.8x | 9.7x | 1x |
| Mon, 06 May 2024 | R$4.5t | R$4.3t | R$454.8b | 10.2x | 10x | 1x |
| Wed, 03 Apr 2024 | R$4.6t | R$4.3t | R$459.1b | 10.5x | 9.9x | 1x |
| Fri, 01 Mar 2024 | R$4.7t | R$4.4t | R$456.9b | 10.5x | 10.2x | 1.1x |
| Sun, 28 Jan 2024 | R$4.6t | R$4.3t | R$466.8b | 11.4x | 9.8x | 1.1x |
| Tue, 26 Dec 2023 | R$4.7t | R$4.4t | R$467.0b | 11.9x | 10.1x | 1.1x |
| Thu, 23 Nov 2023 | R$4.5t | R$4.4t | R$468.0b | 10.8x | 9.6x | 1x |
| Sat, 21 Oct 2023 | R$4.1t | R$4.5t | R$504.1b | 10.3x | 8.2x | 0.9x |
| Mon, 18 Sep 2023 | R$4.4t | R$4.5t | R$505.2b | 11.1x | 8.6x | 1x |
| Wed, 16 Aug 2023 | R$4.3t | R$4.5t | R$503.6b | 11.3x | 8.6x | 1x |
| Fri, 14 Jul 2023 | R$4.4t | R$4.6t | R$552.8b | 11.7x | 8x | 1x |
| Sun, 11 Jun 2023 | R$4.4t | R$4.6t | R$554.5b | 12x | 7.9x | 1x |
| Tue, 09 May 2023 | R$4.0t | R$4.6t | R$569.2b | 10.2x | 7.1x | 0.9x |
| Thu, 06 Apr 2023 | R$3.9t | R$4.6t | R$595.6b | 9.5x | 6.5x | 0.8x |
| Sat, 04 Mar 2023 | R$4.0t | R$4.6t | R$604.9b | 9.4x | 6.6x | 0.9x |
| Mon, 30 Jan 2023 | R$4.3t | R$4.5t | R$628.4b | 10x | 6.8x | 0.9x |
| Wed, 28 Dec 2022 | R$4.1t | R$4.5t | R$628.4b | 9.5x | 6.6x | 0.9x |
| Fri, 25 Nov 2022 | R$4.2t | R$4.5t | R$630.1b | 9.6x | 6.7x | 0.9x |
| Sun, 23 Oct 2022 | R$4.7t | R$4.4t | R$635.1b | 9.6x | 7.5x | 1.1x |
| Tue, 20 Sep 2022 | R$4.5t | R$4.4t | R$635.3b | 9.5x | 7.1x | 1x |
| Thu, 18 Aug 2022 | R$4.6t | R$4.4t | R$642.7b | 9.4x | 7.1x | 1x |
| Sat, 16 Jul 2022 | R$4.0t | R$4.2t | R$682.1b | 7.9x | 5.9x | 0.9x |
| Mon, 13 Jun 2022 | R$4.3t | R$4.2t | R$683.7b | 8.4x | 6.3x | 1x |
| Wed, 11 May 2022 | R$4.4t | R$4.1t | R$671.4b | 8.9x | 6.5x | 1.1x |
| Fri, 08 Apr 2022 | R$5.0t | R$4.0t | R$626.5b | 10.2x | 8x | 1.3x |
| Sun, 06 Mar 2022 | R$4.9t | R$3.9t | R$618.7b | 9.6x | 7.9x | 1.3x |
| Tue, 01 Feb 2022 | R$4.8t | R$3.8t | R$614.9b | 10.1x | 7.8x | 1.3x |
| Thu, 30 Dec 2021 | R$4.6t | R$3.8t | R$615.5b | 10.6x | 7.4x | 1.2x |
Price to Earnings Ratio
7.4x
Current Market PE
- Investors are relatively neutral on the Brazilian market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 8.3x.
Past Earnings Growth
- The earnings for Brazilian listed companies have declined 7.9% per year over the last three years.
- Meanwhile revenues for these companies have grown 6.2% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Sector Trends
Which sectors have driven the changes within the Brazilian Market?
| BR Market | -2.07% | |
| Telecom | 0.023% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
| Utilities | -0.31% | |
| Real Estate | -0.33% | |
| Financials | -0.36% | |
| Tech | -0.45% | |
| Consumer Discretionary | -0.98% | |
| Healthcare | -1.37% | |
| Energy | -2.75% | |
| Consumer Staples | -3.45% | |
| Materials | -3.81% | |
| Industrials | -5.34% | |
Sector PE
- Investors favour the Industrials sector the most for future growth, which is trading close to its 3-year average PE ratio of 24.4x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 22.1%, which is higher than its past year's earnings growth of 15.4% per year.
- The Energy sector is the least preferred by investors for future growth. Although, investor sentiment seems to have improved given that it's trading above its 3-year average of 4.1x.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 25% over the next 5 years.
- This is better than its past earnings growth rate of 16% per year.
- In contrast, the Utilities industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| RENT3 Localiza Rent a Car | R$33.68 | 9.7% +R$3.2b | -47.8% | PE21.2x | Industrials | |
| CPFE3 CPFL Energia | R$32.51 | 2.8% +R$1.0b | -16.1% | PE6.8x | Utilities | |
| B3SA3 B3 - Brasil Bolsa Balcão | R$10.27 | 1.5% +R$809.1m | -29.2% | PE12.8x | Financials | |
| VIVT3 Telefônica Brasil | R$49.65 | 0.9% +R$734.7m | -7.3% | PE15.1x | Telecom | |
| BBSE3 BB Seguridade Participações | R$36.53 | 0.9% +R$640.6m | 9.5% | PE8.3x | Financials |
