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Brazilian (BOVESPA) Market Analysis & Valuation
UpdatedNov 14, 2024
DataAggregated Company Financials
Companies338
- 7D-1.9%
- 3M-5.3%
- 1Y-0.5%
- YTD-6.2%
Over the last 7 days, the market has dropped 1.9%, driven by pullbacks in the Financials and Materials sectors of 2.6% and 6.0%, respectively. Overall the market has been flat in the last year. 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 |
|---|---|---|---|---|---|---|
| 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 |
| Fri, 24 Dec 2021 | R$4.6t | R$3.8t | R$615.7b | 10.5x | 7.5x | 1.2x |
| Sun, 21 Nov 2021 | R$4.6t | R$3.8t | R$616.8b | 10.9x | 7.5x | 1.2x |
Price to Earnings Ratio
7.5x
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 9.7x which is higher than its 3-year average PE of 8.2x.
Past Earnings Growth
- The earnings for Brazilian listed companies have declined 9.7% per year over the last three years.
- Meanwhile revenues for these companies have grown 5.5% 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 | -1.85% | |
| Energy | 2.83% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
| Industrials | -0.18% | |
| Telecom | -0.79% | |
| Consumer Staples | -0.89% | |
| Utilities | -1.12% | |
| Real Estate | -1.86% | |
| Financials | -2.57% | |
| Healthcare | -3.76% | |
| Materials | -5.99% | |
| Consumer Discretionary | -6.55% | |
| Tech | -9.56% | |
Sector PE
- Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 27.4x.
- Analysts expect its future annual earnings growth (23.7%) 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 4.0x.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 25% over the next 5 years.
- However this is lower than its past earnings growth rate of 33% 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 | |
|---|---|---|---|---|---|---|
| EMBR3 Embraer | R$56.69 | 12.1% +R$4.5b | 190.7% | PE16x | Industrials | |
| ABEV3 Ambev | R$12.73 | 1.8% +R$3.6b | -7.1% | PE14.4x | Consumer Staples | |
| BPAC11 Banco BTG Pactual | R$33.96 | 2.0% +R$3.2b | -0.5% | PE14.8x | Financials | |
| RENT3 Localiza Rent a Car | R$45.18 | 5.9% +R$2.6b | -23.4% | PE28.5x | Industrials | |
| SBSP3 Companhia de Saneamento Básico do Estado de São Paulo - SABESP | R$94.50 | 3.3% +R$2.1b | 49.2% | PE6.9x | Utilities |
