Raia Drogasil Valuation

Is RADL3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 RADL3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RADL3 (R$26.09) is trading above our estimate of fair value (R$14.46)

Significantly Below Fair Value: RADL3 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RADL3?

Other financial metrics that can be useful for relative valuation.

RADL3 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/Revenue1.5x
Enterprise Value/EBITDA18x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does RADL3's PE Ratio compare to its peers?

The above table shows the PE ratio for RADL3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.4x
PGMN3 Empreendimentos Pague Menos
58.6x50.3%R$1.5b
PNVL3 Dimed Distribuidora de Medicamentos
13.7x20.3%R$1.5b
DMVF3 d1000 Varejo Farma Participações
16.6xn/aR$397.7m
GMAT3 Grupo Mateus
12.9x17.7%R$15.7b
RADL3 Raia Drogasil
42.6x22.6%R$44.7b

Price-To-Earnings vs Peers: RADL3 is expensive based on its Price-To-Earnings Ratio (42.6x) compared to the peer average (25.4x).


Price to Earnings Ratio vs Industry

How does RADL3's PE Ratio compare vs other companies in the South American Consumer Retailing Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a30.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a30.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RADL3 is expensive based on its Price-To-Earnings Ratio (42.6x) compared to the South American Consumer Retailing industry average (17.8x).


Price to Earnings Ratio vs Fair Ratio

What is RADL3'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.

RADL3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.6x
Fair PE Ratio25x

Price-To-Earnings vs Fair Ratio: RADL3 is expensive based on its Price-To-Earnings Ratio (42.6x) compared to the estimated Fair Price-To-Earnings Ratio (25x).


Analyst Price Targets

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

The above table shows the analyst RADL3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$26.09
R$29.93
+14.7%
9.6%R$33.40R$23.00n/a15
Jul ’25R$25.60
R$30.36
+18.6%
9.7%R$33.40R$23.00n/a14
Jun ’25R$25.07
R$30.50
+21.7%
10.1%R$34.00R$23.00n/a14
May ’25R$25.58
R$30.79
+20.4%
10.7%R$36.00R$23.00n/a14
Apr ’25R$26.80
R$31.00
+15.7%
8.4%R$35.00R$27.00n/a14
Mar ’25R$26.67
R$30.78
+15.4%
8.1%R$35.00R$27.00n/a13
Feb ’25R$25.12
R$31.35
+24.8%
6.8%R$35.00R$27.00n/a13
Jan ’25R$29.40
R$31.32
+6.5%
8.9%R$38.00R$27.00n/a13
Dec ’24R$28.05
R$31.32
+11.6%
8.9%R$38.00R$27.00n/a13
Nov ’24R$24.83
R$31.70
+27.7%
7.2%R$36.00R$28.00n/a13
Oct ’24R$27.62
R$31.51
+14.1%
8.7%R$38.00R$27.50n/a13
Sep ’24R$27.54
R$30.40
+10.4%
11.0%R$38.00R$25.00n/a14
Aug ’24R$28.88
R$29.92
+3.6%
10.2%R$35.58R$25.00n/a14
Jul ’24R$29.60
R$28.12
-5.0%
11.1%R$35.58R$23.08R$25.6015
Jun ’24R$28.62
R$28.06
-2.0%
11.4%R$35.58R$23.08R$25.0715
May ’24R$25.27
R$26.89
+6.4%
9.7%R$33.65R$23.08R$25.5816
Apr ’24R$23.51
R$26.56
+13.0%
11.2%R$34.62R$22.12R$26.8016
Mar ’24R$21.63
R$26.08
+20.6%
10.6%R$31.73R$22.12R$26.6716
Feb ’24R$23.63
R$26.08
+10.4%
10.6%R$31.73R$22.12R$25.1216
Jan ’24R$22.81
R$26.26
+15.1%
10.1%R$31.73R$22.12R$29.4016
Dec ’23R$21.97
R$26.18
+19.2%
10.1%R$31.73R$22.12R$28.0517
Nov ’23R$25.10
R$25.78
+2.7%
10.5%R$30.77R$22.12R$24.8317
Oct ’23R$21.86
R$25.50
+16.7%
11.4%R$30.77R$21.15R$27.6217
Sep ’23R$21.39
R$25.56
+19.5%
12.6%R$30.77R$21.15R$27.5415
Aug ’23R$20.96
R$24.85
+18.5%
12.1%R$29.81R$21.15R$28.8814
Jul ’23R$18.23
R$25.08
+37.6%
12.5%R$31.73R$21.15R$29.6014

Analyst Forecast: Target price is less than 20% higher than the current share price.


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