Cia de Ferro Ligas da Bahia - FERBASA Valuation

Q: What is the Fair Price of FESA4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FESA4 (R$7.93) is trading above our estimate of [[fair value]] (R$6.9)

Is FESA4 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 FESA4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FESA4 (R$7.93) is trading above our estimate of fair value (R$6.9)

Significantly Below Fair Value: FESA4 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FESA4?

Key metric: As FESA4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FESA4. This is calculated by dividing FESA4's market cap by their current earnings.
What is FESA4's PE Ratio?
PE Ratio	10.5x
Earnings	R$256.27m
Market Cap	R$3.22b

FESA4 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	1.3x
Enterprise Value/EBITDA	10.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does FESA4's PE Ratio compare to its peers?

The above table shows the PE ratio for FESA4 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	8.5x
USIM5 Usinas Siderúrgicas de Minas Gerais	8.3x	12.4%	R$7.4b
PATI4 Panatlantica	10.1x	n/a	R$652.3m
CMIN3 CSN Mineração	7.4x	-27.5%	R$28.0b
GGBR4 Gerdau	8.4x	1.1%	R$40.2b
FESA4 Cia de Ferro Ligas da Bahia - FERBASA	10.5x	n/a	R$3.2b

Price-To-Earnings vs Peers: FESA4 is expensive based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (8.5x).

Price to Earnings Ratio vs Industry

How does FESA4's PE Ratio compare vs other companies in the South American Metals and Mining Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: FESA4 is expensive based on its Price-To-Earnings Ratio (10.5x) compared to the South American Metals and Mining industry average (8.2x).

Price to Earnings Ratio vs Fair Ratio

What is FESA4'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.

FESA4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FESA4'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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