Veste Estilo Valuation

Is VSTE3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of VSTE3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VSTE3 (R$8.26) is trading below our estimate of fair value (R$27.81)

Significantly Below Fair Value: VSTE3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VSTE3?

Key metric: As VSTE3 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for VSTE3. This is calculated by dividing VSTE3's market cap by their current revenue.
What is VSTE3's PS Ratio?
PS Ratio	0.9x
Sales	R$1.08b
Market Cap	R$946.20m

VSTE3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	14.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does VSTE3's PS Ratio compare to its peers?

The above table shows the PS ratio for VSTE3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.2x
CAMB3 Cambuci	1x	n/a	R$456.4m
TECN3 Technos	1x	n/a	R$348.8m
GUAR3 Guararapes Confecções	0.5x	6.1%	R$4.1b
VIVA3 Vivara Participações	2.4x	14.7%	R$5.7b
VSTE3 Veste Estilo	0.9x	7.8%	R$946.2m

Price-To-Sales vs Peers: VSTE3 is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

How does VSTE3's PS Ratio compare vs other companies in the South American Luxury Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: VSTE3 is good value based on its Price-To-Sales Ratio (0.9x) compared to the South American Luxury industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is VSTE3's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VSTE3 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.9x
Fair PS Ratio	1.1x

Price-To-Sales vs Fair Ratio: VSTE3 is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

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.