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Brazilian (BOVESPA) Market Analysis & Valuation
UpdatedJan 19, 2025
DataAggregated Company Financials
Companies345
- 7D2.6%
- 3M-8.3%
- 1Y-10.0%
- YTD1.6%
The market has climbed 2.6% in the last 7 days, lead by the Financials sector with a gain of 4.9%. Longer term the market is actually down 10.0% over the past year. As for the next few years, earnings are expected to grow by 12% 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 |
|---|---|---|---|---|---|---|
| Sun, 19 Jan 2025 | R$4.1t | R$4.6t | R$481.0b | 8.2x | 8.6x | 0.9x |
| Tue, 17 Dec 2024 | R$4.3t | R$4.6t | R$481.2b | 8.6x | 8.9x | 0.9x |
| Thu, 14 Nov 2024 | R$4.4t | R$4.5t | R$454.7b | 9x | 9.7x | 1x |
| Sat, 12 Oct 2024 | R$4.5t | R$4.4t | R$428.9b | 9.5x | 10.5x | 1x |
| Mon, 09 Sep 2024 | R$4.7t | R$4.4t | R$427.0b | 10x | 10.9x | 1.1x |
| Wed, 07 Aug 2024 | R$4.4t | R$4.4t | R$457.0b | 9.6x | 9.6x | 1x |
| Fri, 05 Jul 2024 | R$4.4t | R$4.3t | R$446.5b | 9.9x | 9.8x | 1x |
| Sun, 02 Jun 2024 | R$4.3t | R$4.3t | R$445.1b | 10x | 9.6x | 1x |
| Tue, 30 Apr 2024 | R$4.5t | R$4.3t | R$457.7b | 10.3x | 9.8x | 1x |
| Thu, 28 Mar 2024 | R$4.5t | R$4.3t | R$453.1b | 10.3x | 10x | 1x |
| Sat, 24 Feb 2024 | R$4.6t | R$4.4t | R$465.6b | 10.3x | 9.9x | 1.1x |
| Mon, 22 Jan 2024 | R$4.5t | R$4.3t | R$466.8b | 11.6x | 9.7x | 1x |
| Wed, 20 Dec 2023 | R$4.7t | R$4.4t | R$467.0b | 11.8x | 10.1x | 1.1x |
| Fri, 17 Nov 2023 | R$4.5t | R$4.4t | R$471.0b | 10.5x | 9.5x | 1x |
| Sun, 15 Oct 2023 | R$4.2t | R$4.5t | R$504.4b | 10.6x | 8.3x | 0.9x |
| Tue, 12 Sep 2023 | R$4.3t | R$4.5t | R$505.9b | 11.2x | 8.5x | 1x |
| Thu, 10 Aug 2023 | R$4.4t | R$4.5t | R$509.9b | 11.9x | 8.7x | 1x |
| Sat, 08 Jul 2023 | R$4.4t | R$4.6t | R$553.5b | 11.9x | 8x | 1x |
| Mon, 05 Jun 2023 | R$4.2t | R$4.6t | R$554.8b | 11.3x | 7.6x | 0.9x |
| Wed, 03 May 2023 | R$3.9t | R$4.6t | R$575.9b | 9.7x | 6.7x | 0.8x |
| Fri, 31 Mar 2023 | R$4.0t | R$4.6t | R$595.5b | 9.8x | 6.6x | 0.9x |
| Sun, 26 Feb 2023 | R$4.0t | R$4.6t | R$608.4b | 9.5x | 6.6x | 0.9x |
| Tue, 24 Jan 2023 | R$4.2t | R$4.5t | R$628.4b | 9.8x | 6.7x | 0.9x |
| Thu, 22 Dec 2022 | R$4.1t | R$4.6t | R$628.4b | 9.2x | 6.5x | 0.9x |
| Sat, 19 Nov 2022 | R$4.3t | R$4.5t | R$630.9b | 9.3x | 6.8x | 0.9x |
| Mon, 17 Oct 2022 | R$4.5t | R$4.4t | R$635.5b | 9.7x | 7x | 1x |
| Wed, 14 Sep 2022 | R$4.6t | R$4.4t | R$635.3b | 9.8x | 7.2x | 1x |
| Fri, 12 Aug 2022 | R$4.5t | R$4.3t | R$657.8b | 8.8x | 6.9x | 1.1x |
| Sun, 10 Jul 2022 | R$4.1t | R$4.2t | R$682.1b | 8.1x | 6x | 1x |
| Tue, 07 Jun 2022 | R$4.4t | R$4.2t | R$683.7b | 8.8x | 6.5x | 1x |
| Thu, 05 May 2022 | R$4.6t | R$4.0t | R$617.5b | 9.7x | 7.4x | 1.1x |
| Sat, 02 Apr 2022 | R$5.1t | R$4.0t | R$625.4b | 10.2x | 8.2x | 1.3x |
| Mon, 28 Feb 2022 | R$4.9t | R$3.9t | R$585.8b | 9.7x | 8.3x | 1.2x |
| Wed, 26 Jan 2022 | R$4.6t | R$3.8t | R$615.4b | 9.8x | 7.6x | 1.2x |
Price to Earnings Ratio
7.6x
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 | 2.55% | |
| Telecom | 5.20% | |
| Financials | 4.92% | |
| Materials | 4.07% | |
| Tech | 3.83% | |
| Utilities | 2.18% | |
| Industrials | 1.94% | |
| Healthcare | 1.71% | |
| Consumer Discretionary | 1.40% | |
| Energy | 0.75% | |
| Real Estate | 0.53% | |
| Information Technology | 0% | 0 |
| Financials | 0% | 0 |
| Health Care | 0% | 0 |
| Industrials | 0% | 0 |
| Consumer Staples | -1.22% | |
Sector PE
- Investors favour the Industrials sector the most for future growth, which is trading close to its 3-year average PE ratio of 24.5x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 21.2%, which is higher than its past year's earnings growth of 15.4% per year.
- The Consumer Discretionary sector is the least preferred by investors for future growth, which is trading below its 3-year average of 29.8x.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings growth rate of 16% per year.
- In contrast, the Utilities sector is expected to see its earnings decline by 4.2% 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 | |
|---|---|---|---|---|---|---|
| VALE3 Vale | R$54.49 | 5.8% +R$12.7b | -20.0% | PE4.8x | Materials | |
| BPAC11 Banco BTG Pactual | R$30.05 | 8.4% +R$11.0b | -18.4% | PE12.6x | Financials | |
| BBAS3 Banco do Brasil | R$25.35 | 4.7% +R$6.5b | -9.3% | PB0.8x | Financials | |
| SBSP3 Companhia de Saneamento Básico do Estado de São Paulo - SABESP | R$93.00 | 6.2% +R$3.7b | 22.4% | PE6.8x | Utilities | |
| VIVT3 Telefônica Brasil | R$49.10 | 4.8% +R$3.6b | -3.1% | PE14.9x | Telecom |
