WLM Participações e Comércio de Máquinas e Veículos S.A.

BOVESPA:WLMM3 Stock Report

Market Cap: R$1.1b

WLM Participações e Comércio de Máquinas e Veículos Valuation

Is WLMM3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WLMM3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WLMM3 (R$27) is trading above our estimate of fair value (R$1.9)

Significantly Below Fair Value: WLMM3 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WLMM3?

Key metric: As WLMM3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WLMM3. This is calculated by dividing WLMM3's market cap by their current earnings.
What is WLMM3's PE Ratio?
PE Ratio7.7x
EarningsR$139.52m
Market CapR$1.05b

Price to Earnings Ratio vs Peers

How does WLMM3's PE Ratio compare to its peers?

The above table shows the PE ratio for WLMM3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.9x
MILS3 Mills Locação Serviços e Logística
7.4x13.7%R$2.3b
ARML3 Armac Locação Logística e Serviços
11.5x27.6%R$2.6b
PEAB4 Companhia de Participações Aliança da Bahia
24.5xn/aR$803.7m
FRIO3 Metalfrio Solutions
51.9xn/aR$968.1m
WLMM3 WLM Participações e Comércio de Máquinas e Veículos
7.7xn/aR$1.1b

Price-To-Earnings vs Peers: WLMM3 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (23.9x).

Price to Earnings Ratio vs Industry

How does WLMM3's PE Ratio compare vs other companies in the Global Trade Distributors Industry?

22 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WLMM3 7.7xIndustry Avg. 14.8xNo. of Companies86PE01224364860+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WLMM3 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the Global Trade Distributors industry average (14.8x).

Price to Earnings Ratio vs Fair Ratio

What is WLMM3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WLMM3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WLMM3's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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