Narrative Update • Jun 03
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Brazilian (BOVESPA) Tech Sector Analysis
UpdatedJun 07, 2026
DataAggregated Company Financials
Companies9
- 7D-1.1%
- 3M-5.5%
- 1Y-14.2%
- YTD-13.1%
Over the last 7 days, the Tech industry has dropped 1.1%, driven by declines in Intelbras - Indústria de Telecomunicação Eletrônica Brasileira and Grupo Multi of 2.6% and 7.7%, respectively. However, the industry is down 14% over the past year. As for the next few years, earnings are expected to grow by 22% per annum.
Sector Valuation and Performance
Has the Brazilian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 07 Jun 2026 | R$28.5b | R$26.5b | R$1.6b | 7.5x | 18.3x | 1.1x |
| Tue, 05 May 2026 | R$28.8b | R$25.9b | R$1.3b | 13.8x | 21.5x | 1.1x |
| Thu, 02 Apr 2026 | R$30.3b | R$26.0b | R$1.5b | 13.4x | 19.9x | 1.2x |
| Sat, 28 Feb 2026 | R$31.9b | R$25.8b | R$1.3b | 9.7x | 24.9x | 1.2x |
| Mon, 26 Jan 2026 | R$37.0b | R$26.0b | R$1.3b | 8x | 28.9x | 1.4x |
| Wed, 24 Dec 2025 | R$34.0b | R$26.0b | R$1.3b | 8.1x | 26.5x | 1.3x |
| Fri, 21 Nov 2025 | R$36.4b | R$26.0b | R$1.3b | 8.7x | 28.4x | 1.4x |
| Sun, 19 Oct 2025 | R$32.7b | R$25.5b | R$1.3b | 27.8x | 25.2x | 1.3x |
| Tue, 16 Sep 2025 | R$35.1b | R$25.5b | R$1.3b | 29.8x | 27x | 1.4x |
| Thu, 14 Aug 2025 | R$34.0b | R$25.4b | R$1.3b | 28.8x | 26.1x | 1.3x |
| Sat, 12 Jul 2025 | R$34.1b | R$25.1b | R$1.2b | 20.9x | 29.2x | 1.4x |
| Mon, 09 Jun 2025 | R$33.6b | R$25.1b | R$1.2b | 20.5x | 28.7x | 1.3x |
| Wed, 07 May 2025 | R$31.5b | R$25.4b | R$1.2b | 9x | 27.1x | 1.2x |
| Fri, 04 Apr 2025 | R$29.5b | R$25.4b | R$1.2b | 8.4x | 24.9x | 1.2x |
| Sun, 02 Mar 2025 | R$31.3b | R$26.3b | R$1.2b | 12.5x | 26.5x | 1.2x |
| Tue, 28 Jan 2025 | R$28.7b | R$26.0b | R$1.2b | 12.5x | 24.4x | 1.1x |
| Thu, 26 Dec 2024 | R$27.2b | R$26.0b | R$1.2b | 13.4x | 23.2x | 1x |
| Sat, 23 Nov 2024 | R$30.6b | R$26.1b | R$957.1m | 17x | 32x | 1.2x |
| Mon, 21 Oct 2024 | R$31.4b | R$25.8b | R$863.0m | 21.4x | 36.4x | 1.2x |
| Wed, 18 Sep 2024 | R$33.2b | R$25.8b | R$863.0m | 22.9x | 38.4x | 1.3x |
| Fri, 16 Aug 2024 | R$32.7b | R$25.8b | R$975.4m | 22.3x | 33.6x | 1.3x |
| Sun, 14 Jul 2024 | R$33.5b | R$25.6b | R$917.8m | 13.2x | 36.5x | 1.3x |
| Tue, 11 Jun 2024 | R$33.3b | R$25.6b | R$917.7m | 13.4x | 36.3x | 1.3x |
| Thu, 09 May 2024 | R$33.3b | R$24.9b | R$522.4m | 9.6x | 63.8x | 1.3x |
| Sat, 06 Apr 2024 | R$32.6b | R$24.8b | R$473.3m | 12x | 68.9x | 1.3x |
| Mon, 04 Mar 2024 | R$33.9b | R$24.7b | R$573.9m | 12.6x | 59.1x | 1.4x |
| Wed, 31 Jan 2024 | R$40.3b | R$28.6b | R$1.2b | 13x | 34.1x | 1.4x |
| Fri, 29 Dec 2023 | R$43.0b | R$28.6b | R$1.2b | 13.7x | 36.4x | 1.5x |
| Sun, 26 Nov 2023 | R$40.7b | R$28.6b | R$1.2b | 12.6x | 34.5x | 1.4x |
| Tue, 24 Oct 2023 | R$36.1b | R$28.7b | R$1.5b | 14.7x | 24.8x | 1.3x |
| Thu, 21 Sep 2023 | R$39.6b | R$28.7b | R$1.5b | 16.1x | 27.2x | 1.4x |
| Sat, 19 Aug 2023 | R$41.4b | R$28.9b | R$1.5b | 18x | 28.2x | 1.4x |
| Mon, 17 Jul 2023 | R$42.1b | R$29.4b | R$1.6b | 20.6x | 26.2x | 1.4x |
| Wed, 14 Jun 2023 | R$44.0b | R$29.4b | R$1.6b | 19.2x | 27.4x | 1.5x |
Price to Earnings Ratio
27.4x
Current Industry PE
- Investors are pessimistic on the Brazilian Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 18.3x which is lower than its 3-year average PE of 31.9x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have declined 3.4% per year.
- This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.
Industry Trends
Which industries have driven the changes within the Brazilian Tech sector?
| BR Market | -2.80% | |
| Tech | -1.14% | |
| Software | 0.11% | |
| IT | -2.14% | |
| Communications | -2.42% | |
| Electronic Equipment and Components | -4.90% | |
| Tech Hardware | -8.43% | |
Industry PE
- Investors are most optimistic about the Software industry even though it's trading below its 3-year average PE ratio of 35.2x.
- Analysts expect its future annual earnings growth (20.7%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the IT industry, expecting annual earnings growth of 75% over the next 5 years.
- In contrast, the Electronic Equipment and Components industry is expected to see its earnings decline by 31% per year 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 | |
|---|---|---|---|---|---|
| TOTS3 TOTVS | R$33.10 | 0.09% +R$17.4m | -19.2% | PE22.5x | |
| WDCN3 Livetech da Bahia Indústria e Comércio | R$2.58 | 5.3% +R$8.2m | -19.6% | PS0.2x | |
| NGRD3 Neogrid Participações | R$33.93 | 1.4% +R$4.3m | 28.5% | PS1.1x |