Atacadão Valuation

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

ATAA.Y ($5.09) is trading below our estimate of [[fair value]] ($12.23)

Is ATAA.Y 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ATAA.Y ($5.09) is trading below our estimate of fair value ($12.23)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ATAA.Y?

Key metric: As ATAA.Y is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ATAA.Y. This is calculated by dividing ATAA.Y's market cap by their current revenue.
What is ATAA.Y's PS Ratio?
PS Ratio	0.1x
Sales	R$113.95b
Market Cap	R$14.64b

ATAA.Y 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	0.3x
Enterprise Value/EBITDA	6.4x
PEG Ratio	10.4x

Price to Sales Ratio vs Peers

How does ATAA.Y's PS Ratio compare to its peers?

The above table shows the PS ratio for ATAA.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.5x
PSMT PriceSmart	0.5x	7.9%	US$2.7b
BJ BJ's Wholesale Club Holdings	0.6x	5.6%	US$12.9b
DADA Dada Nexus	0.3x	9.7%	US$348.1m
DLTR Dollar Tree	0.5x	3.1%	US$14.9b
ATAA.Y Atacadão	0.1x	6.0%	US$14.6b

Price-To-Sales vs Peers: ATAA.Y is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does ATAA.Y's PS Ratio compare vs other companies in the US Consumer Retailing Industry?

11 Companies	Price / Sales	Estimated Growth	Market Cap
WBA Walgreens Boots Alliance	0.05x	1.5%	US$7.55b
UNFI United Natural Foods	0.05x	0.1%	US$1.47b
SPTN SpartanNash	0.07x	1.4%	US$634.59m
YI 111	0.04x	10.8%	US$52.69m

11 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: ATAA.Y is good value based on its Price-To-Sales Ratio (0.1x) compared to the US Consumer Retailing industry average (0.4x).

Price to Sales Ratio vs Fair Ratio

What is ATAA.Y's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ATAA.Y PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate ATAA.Y's Price-To-Sales 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.