Raízen Valuation

Is RAIZ4 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 RAIZ4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RAIZ4 (R$3.02) is trading above our estimate of fair value (R$1.88)

Significantly Below Fair Value: RAIZ4 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RAIZ4?

Other financial metrics that can be useful for relative valuation.

RAIZ4 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/Revenue0.3x
Enterprise Value/EBITDA5.3x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does RAIZ4's PE Ratio compare to its peers?

The above table shows the PE ratio for RAIZ4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.4x
VBBR3 Vibra Energia
4.2x-16.8%R$25.9b
LREN3 Lojas Renner
14.9x15.4%R$16.9b
SBFG3 Grupo SBF
7.7x8.0%R$3.5b
CEAB3 C&A Modas
10.6x10.6%R$2.9b
RAIZ4 Raízen
33.4x35.8%R$31.4b

Price-To-Earnings vs Peers: RAIZ4 is expensive based on its Price-To-Earnings Ratio (33.4x) compared to the peer average (9.4x).


Price to Earnings Ratio vs Industry

How does RAIZ4's PE Ratio compare vs other companies in the Global Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RAIZ4 is expensive based on its Price-To-Earnings Ratio (33.4x) compared to the Global Specialty Retail industry average (16.4x).


Price to Earnings Ratio vs Fair Ratio

What is RAIZ4'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.

RAIZ4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.4x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: RAIZ4 is expensive based on its Price-To-Earnings Ratio (33.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).


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 RAIZ4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$3.02
R$5.19
+71.9%
14.1%R$7.00R$4.40n/a13
Oct ’25R$3.11
R$5.19
+67.0%
14.1%R$7.00R$4.40n/a13
Sep ’25R$3.21
R$5.31
+65.3%
13.8%R$7.00R$4.40n/a14
Aug ’25R$2.97
R$5.41
+82.1%
15.9%R$7.00R$4.00n/a14
Jul ’25R$2.98
R$5.63
+89.0%
16.2%R$7.00R$4.40n/a13
Jun ’25R$2.85
R$5.78
+102.6%
14.9%R$7.00R$4.40n/a12
May ’25R$3.06
R$5.86
+91.4%
14.2%R$7.00R$4.60n/a12
Apr ’25R$3.36
R$6.04
+79.8%
14.8%R$8.00R$5.00n/a12
Mar ’25R$3.57
R$6.04
+69.2%
14.8%R$8.00R$5.00n/a12
Feb ’25R$3.82
R$6.08
+59.2%
12.9%R$8.00R$5.00n/a12
Jan ’25R$4.03
R$6.03
+49.6%
13.1%R$8.00R$5.00n/a13
Dec ’24R$3.66
R$6.08
+66.0%
12.4%R$8.00R$5.00n/a13
Nov ’24R$3.75
R$5.98
+59.4%
13.1%R$8.00R$5.00n/a13
Oct ’24R$3.58
R$5.98
+67.0%
13.1%R$8.00R$5.00R$3.1113
Sep ’24R$3.63
R$5.98
+64.6%
14.1%R$8.00R$5.00R$3.2112
Aug ’24R$4.16
R$6.02
+44.6%
14.2%R$8.00R$5.00R$2.9712
Jul ’24R$4.40
R$5.92
+34.6%
14.0%R$8.00R$5.00R$2.9813
Jun ’24R$3.76
R$5.78
+53.8%
15.6%R$8.00R$4.90R$2.8513
May ’24R$3.19
R$5.94
+86.3%
16.2%R$8.00R$4.90R$3.0614
Apr ’24R$2.85
R$6.26
+119.5%
15.4%R$8.00R$4.90R$3.3614
Mar ’24R$3.02
R$6.51
+115.7%
15.2%R$8.00R$5.00R$3.5715
Feb ’24R$3.15
R$6.93
+120.0%
14.9%R$9.00R$5.00R$3.8214
Jan ’24R$3.74
R$7.18
+91.9%
17.4%R$10.00R$5.00R$4.0314
Dec ’23R$3.84
R$7.21
+87.9%
16.9%R$10.00R$5.00R$3.6614
Nov ’23R$4.51
R$7.35
+62.9%
16.3%R$10.00R$5.00R$3.7513
Oct ’23R$4.19
R$7.88
+87.9%
17.6%R$11.00R$6.50R$3.5812

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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