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Brazilian (BOVESPA) Market Analysis & Valuation
UpdatedAug 16, 2024
DataAggregated Company Financials
Companies348
- 7D2.8%
- 3M4.4%
- 1Y9.7%
- YTD-1.1%
The market is up 2.8% over the last week, with the Financials sector leading the way, up 5.4%. In the last year, the market has climbed 9.7%. As for the next few years, earnings are expected to grow by 16% per annum.
Market Valuation and Performance
Has the Brazilian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 16 Aug 2024 | R$4.7t | R$4.4t | R$422.7b | 10.4x | 11.1x | 1.1x |
| Sun, 14 Jul 2024 | R$4.5t | R$4.3t | R$446.4b | 10x | 10x | 1x |
| Tue, 11 Jun 2024 | R$4.3t | R$4.4t | R$447.0b | 9.8x | 9.5x | 1x |
| Thu, 09 May 2024 | R$4.6t | R$4.4t | R$460.9b | 10.2x | 9.9x | 1x |
| Sat, 06 Apr 2024 | R$4.5t | R$4.3t | R$458.9b | 10.4x | 9.9x | 1x |
| Mon, 04 Mar 2024 | R$4.6t | R$4.3t | R$456.6b | 10.4x | 10.1x | 1.1x |
| Wed, 31 Jan 2024 | R$4.6t | R$4.3t | R$466.8b | 11.2x | 9.8x | 1.1x |
| Fri, 29 Dec 2023 | R$4.8t | R$4.4t | R$467.0b | 11.7x | 10.2x | 1.1x |
| Sun, 26 Nov 2023 | R$4.4t | R$4.4t | R$468.4b | 10.7x | 9.5x | 1x |
| Tue, 24 Oct 2023 | R$4.1t | R$4.5t | R$504.1b | 10.6x | 8.2x | 0.9x |
| Thu, 21 Sep 2023 | R$4.3t | R$4.5t | R$504.8b | 11.2x | 8.6x | 1x |
| Sat, 19 Aug 2023 | R$4.3t | R$4.5t | R$504.0b | 10.7x | 8.5x | 0.9x |
| Mon, 17 Jul 2023 | R$4.4t | R$4.6t | R$552.8b | 11.6x | 7.9x | 1x |
| Wed, 14 Jun 2023 | R$4.4t | R$4.6t | R$554.5b | 11.4x | 7.9x | 0.9x |
| Fri, 12 May 2023 | R$4.1t | R$4.6t | R$566.7b | 10.4x | 7.2x | 0.9x |
| Sun, 09 Apr 2023 | R$3.9t | R$4.6t | R$595.1b | 9.4x | 6.5x | 0.8x |
| Tue, 07 Mar 2023 | R$4.0t | R$4.6t | R$617.0b | 9.6x | 6.5x | 0.9x |
| Thu, 02 Feb 2023 | R$4.3t | R$4.5t | R$628.4b | 10x | 6.8x | 0.9x |
| Sat, 31 Dec 2022 | R$4.2t | R$4.5t | R$628.6b | 9.7x | 6.7x | 0.9x |
| Mon, 28 Nov 2022 | R$4.3t | R$4.5t | R$628.6b | 9.1x | 6.8x | 0.9x |
| Wed, 26 Oct 2022 | R$4.6t | R$4.4t | R$635.1b | 9.6x | 7.2x | 1x |
| Fri, 23 Sep 2022 | R$4.6t | R$4.4t | R$635.3b | 9.8x | 7.2x | 1x |
| Sun, 21 Aug 2022 | R$4.5t | R$4.4t | R$640.5b | 9.3x | 7x | 1x |
| Tue, 19 Jul 2022 | R$4.0t | R$4.2t | R$682.1b | 7.9x | 5.9x | 0.9x |
| Thu, 16 Jun 2022 | R$4.2t | R$4.2t | R$683.8b | 8.3x | 6.1x | 1x |
| Sat, 14 May 2022 | R$4.5t | R$4.1t | R$678.6b | 9x | 6.6x | 1.1x |
| Mon, 11 Apr 2022 | R$5.0t | R$4.0t | R$627.0b | 10x | 8x | 1.2x |
| Wed, 09 Mar 2022 | R$4.8t | R$3.9t | R$619.4b | 9.4x | 7.7x | 1.2x |
| Fri, 04 Feb 2022 | R$4.8t | R$3.8t | R$614.9b | 10.1x | 7.9x | 1.3x |
| Sun, 02 Jan 2022 | R$4.6t | R$3.8t | R$615.1b | 10.8x | 7.5x | 1.2x |
| Tue, 30 Nov 2021 | R$4.6t | R$3.8t | R$617.3b | 10.4x | 7.4x | 1.2x |
| Thu, 28 Oct 2021 | R$4.8t | R$3.5t | R$537.3b | 11.6x | 8.9x | 1.4x |
| Sat, 25 Sep 2021 | R$5.1t | R$3.5t | R$535.7b | 12.6x | 9.5x | 1.4x |
| Mon, 23 Aug 2021 | R$5.3t | R$3.5t | R$529.5b | 13.4x | 10x | 1.5x |
Price to Earnings Ratio
10x
Current Market PE
- Investors are optimistic on the Brazilian market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 11.1x which is higher than its 3-year average PE of 8.1x.
Past Earnings Growth
- The earnings for Brazilian listed companies have declined 7.2% per year over the last three years.
- Meanwhile revenues for these companies have grown 7.8% 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 | 2.83% | |
| Financials | 5.41% | |
| Energy | 4.41% | |
| Consumer Staples | 4.08% | |
| Healthcare | 3.18% | |
| Consumer Discretionary | 1.54% | |
| Utilities | 1.03% | |
| Real Estate | 0.80% | |
| Telecom | 0.73% | |
| Industrials | 0.42% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
| Tech | -0.76% | |
| Materials | -0.88% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth even though it's trading below its 3-year average PE ratio of 47.2x.
- Analysts expect its future annual earnings growth (27.8%) to be largely in line with prior year's earnings growth.
- The market's confidence could indicate that the market believes that analysts are underestimating future growth.
- 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 3.8x.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 28% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Materials sector is expected to see its earnings grow by 7.2% 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 | Sector | |
|---|---|---|---|---|---|---|
| WEGE3 WEG | R$52.70 | 6.0% +R$12.6b | 45.3% | PE37.9x | Industrials | |
| JBSS3 JBS | R$37.92 | 13.8% +R$10.2b | 97.4% | PE20.9x | Consumer Staples | |
| BBAS3 Banco do Brasil | R$28.15 | 6.0% +R$9.1b | 17.8% | PB0.9x | Financials | |
| ABEV3 Ambev | R$13.03 | 4.7% +R$9.1b | -9.3% | PE14.2x | Consumer Staples | |
| BPAC11 Banco BTG Pactual | R$36.19 | 4.8% +R$8.0b | 17.9% | PE15.7x | Financials |
