d1000 Varejo Farma Participações Valuation

Q: What is the Fair Price of DMVF3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DMVF3 (R$6.38) is trading below our estimate of [[fair value]] (R$23.11)

Is DMVF3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 DMVF3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DMVF3 (R$6.38) is trading below our estimate of fair value (R$23.11)

Significantly Below Fair Value: DMVF3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DMVF3?

Key metric: As DMVF3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DMVF3. This is calculated by dividing DMVF3's market cap by their current earnings.
What is DMVF3's PE Ratio?
PE Ratio	10.2x
Earnings	R$31.59m
Market Cap	R$336.00m

DMVF3 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	0.3x
Enterprise Value/EBITDA	6.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does DMVF3's PE Ratio compare to its peers?

The above table shows the PE ratio for DMVF3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	23.5x
PNVL3 Dimed Distribuidora de Medicamentos	14x	23.4%	R$1.5b
PGMN3 Empreendimentos Pague Menos	11.4x	27.4%	R$1.8b
RADL3 Raia Drogasil	39.7x	24.8%	R$43.6b
HL Healthlead	28.9x	n/a	฿2.2b
DMVF3 d1000 Varejo Farma Participações	10.2x	n/a	R$336.0m

Price-To-Earnings vs Peers: DMVF3 is good value based on its Price-To-Earnings Ratio (10.2x) compared to the peer average (23.5x).

Price to Earnings Ratio vs Industry

How does DMVF3's PE Ratio compare vs other companies in the South American Consumer Retailing Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: DMVF3 is good value based on its Price-To-Earnings Ratio (10.2x) compared to the South American Consumer Retailing industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is DMVF3'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.

DMVF3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DMVF3'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.