Eucatex S.A. Indústria e Comércio

BOVESPA:EUCA4 Stock Report

Market Cap: R$1.4b

Eucatex Indústria e Comércio Valuation

Is EUCA4 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 EUCA4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EUCA4 (R$13.99) is trading below our estimate of fair value (R$35.95)

Significantly Below Fair Value: EUCA4 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EUCA4?

Key metric: As EUCA4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EUCA4. This is calculated by dividing EUCA4's market cap by their current earnings.
What is EUCA4's PE Ratio?
PE Ratio3.3x
EarningsR$393.80m
Market CapR$1.38b

Price to Earnings Ratio vs Peers

How does EUCA4's PE Ratio compare to its peers?

The above table shows the PE ratio for EUCA4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.5x
DXCO3 Dexco
18.8x32.4%R$6.2b
RANI3 Irani Papel e Embalagem
13.7x16.4%R$1.7b
VITT3 Vittia
11.7x28.2%R$832.0m
DEXP3 Dexxos Participações
5.7x7.2%R$958.8m
EUCA4 Eucatex Indústria e Comércio
3.3xn/aR$1.4b

Price-To-Earnings vs Peers: EUCA4 is good value based on its Price-To-Earnings Ratio (3.3x) compared to the peer average (12.5x).

Price to Earnings Ratio vs Industry

How does EUCA4's PE Ratio compare vs other companies in the Global Forestry Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.15.6x25.7%
EUCA4 Eucatex Indústria e Comércio
 3.3xn/aUS$238.09m
EUCA4 3.3xIndustry Avg. 15.6xNo. of Companies33PE01632486480+
9 CompaniesEstimated GrowthMarket Cap
Industry Avg.15.6x25.7%
EUCA4 Eucatex Indústria e Comércio
 3.3xn/aUS$238.09m
No more companies

Price-To-Earnings vs Industry: EUCA4 is good value based on its Price-To-Earnings Ratio (3.3x) compared to the Global Forestry industry average (15.6x).

Price to Earnings Ratio vs Fair Ratio

What is EUCA4'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.

EUCA4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EUCA4'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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