Porto Seguro Valuation

Is PSSA3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 PSSA3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PSSA3 (R$37.2) is trading above our estimate of fair value (R$35.28)

Significantly Below Fair Value: PSSA3 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for PSSA3?

Other financial metrics that can be useful for relative valuation.

PSSA3 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/Revenue0.7x
Enterprise Value/EBITDA4.6x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does PSSA3's PE Ratio compare to its peers?

The above table shows the PE ratio for PSSA3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.3x
CXSE3 Caixa Seguridade Participações
12.6x12.9%R$43.2b
BBSE3 BB Seguridade Participações
8x2.9%R$68.1b
CSAB4 Companhia de Seguros Alianca da Bahia
23.2xn/aR$305.2m
8230 Al Rajhi Company for Cooperative Insurance
45.7x28.2%ر.س17.6b
PSSA3 Porto Seguro
9.6x7.3%R$24.1b

Price-To-Earnings vs Peers: PSSA3 is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (22.4x).


Price to Earnings Ratio vs Industry

How does PSSA3's PE Ratio compare vs other companies in the South American Insurance Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PSSA3 is expensive based on its Price-To-Earnings Ratio (9.6x) compared to the South American Insurance industry average (8.4x).


Price to Earnings Ratio vs Fair Ratio

What is PSSA3'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.

PSSA3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ratio9.4x

Price-To-Earnings vs Fair Ratio: PSSA3 is expensive based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (9.4x).


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 PSSA3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$37.20
R$39.91
+7.3%
9.9%R$45.00R$33.00n/a11
Oct ’25R$36.33
R$39.91
+9.9%
9.9%R$45.00R$33.00n/a11
Sep ’25R$34.06
R$37.30
+9.5%
8.4%R$42.00R$33.00n/a10
Aug ’25R$30.85
R$35.30
+14.4%
5.8%R$39.00R$33.00n/a10
Jul ’25R$30.57
R$34.95
+14.3%
6.3%R$39.00R$32.00n/a11
Jun ’25R$30.35
R$35.15
+15.8%
6.3%R$39.00R$32.00n/a10
May ’25R$29.96
R$34.55
+15.3%
7.3%R$39.00R$30.00n/a10
Apr ’25R$30.86
R$34.55
+12.0%
7.3%R$39.00R$30.00n/a10
Mar ’25R$28.61
R$32.75
+14.5%
6.6%R$35.00R$28.00n/a10
Feb ’25R$26.79
R$32.75
+22.2%
6.6%R$35.00R$28.00n/a10
Jan ’25R$28.74
R$32.65
+13.6%
6.8%R$35.00R$28.00n/a10
Dec ’24R$28.49
R$32.30
+13.4%
6.4%R$35.00R$28.00n/a10
Nov ’24R$25.61
R$31.88
+24.5%
7.9%R$36.00R$27.00n/a8
Oct ’24R$26.29
R$32.00
+21.7%
8.3%R$36.00R$27.00R$36.338
Sep ’24R$26.10
R$31.78
+21.8%
7.4%R$35.00R$27.00R$34.069
Aug ’24R$28.14
R$31.22
+11.0%
9.4%R$35.00R$25.00R$30.859
Jul ’24R$28.12
R$30.67
+9.1%
8.6%R$35.00R$25.00R$30.579
Jun ’24R$23.77
R$29.56
+24.3%
7.3%R$32.00R$25.00R$30.359
May ’24R$25.13
R$29.65
+18.0%
6.3%R$32.00R$26.00R$29.9610
Apr ’24R$23.52
R$29.65
+26.1%
6.3%R$32.00R$26.00R$30.8610
Mar ’24R$26.11
R$29.86
+14.4%
6.4%R$32.00R$26.00R$28.6111
Feb ’24R$25.46
R$28.50
+11.9%
10.4%R$32.00R$23.00R$26.7911
Jan ’24R$23.15
R$28.32
+22.3%
11.4%R$32.00R$23.00R$28.7411
Dec ’23R$23.97
R$29.50
+23.1%
18.0%R$43.00R$23.00R$28.4911
Nov ’23R$23.41
R$27.95
+19.4%
21.6%R$43.00R$21.00R$25.6110
Oct ’23R$21.13
R$28.05
+32.7%
21.4%R$43.00R$21.00R$26.2910

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


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