Vale SA Valuation
| VALEN Stock | MXN 180.79 1.21 0.66% |
At this time, the company appears to be overvalued. Vale SA has a current Real Value of 162.71 per share. The regular price of the company is 180.79. Our model measures the value of Vale SA from inspecting the company fundamentals such as Return On Equity of 0.52, shares outstanding of 5.13 B, and Operating Margin of 0.45 % as well as reviewing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Vale SA's price fluctuation is very steady at this time. Calculation of the real value of Vale SA is based on 3 months time horizon. Increasing Vale SA's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Vale stock is determined by what a typical buyer is willing to pay for full or partial control of Vale SA. Since Vale SA is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Vale Stock. However, Vale SA's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 180.79 | Real 162.71 | Hype 180.79 |
The intrinsic value of Vale SA's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Vale SA's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Vale SA helps investors to forecast how Vale stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Vale SA more accurately as focusing exclusively on Vale SA's fundamentals will not take into account other important factors: Vale SA Total Value Analysis
Vale SA is at this time expected to have takeover price of 1.74 T with market capitalization of 1.59 T, debt of 11.15 B, and cash on hands of 6.47 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Vale SA fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.74 T | 1.59 T | 11.15 B | 6.47 B |
Vale SA Investor Information
About 22.0% of the company outstanding shares are owned by institutional investors. The book value of Vale SA was at this time reported as 39.52. The company has Price/Earnings (P/E) ratio of 387.81. Vale SA recorded earning per share (EPS) of 91.44. The entity last dividend was issued on the 22nd of September 2020. The firm had 2:1 split on the September 13, 2007. Based on the key measurements obtained from Vale SA's financial statements, Vale SA is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Vale SA Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Vale SA has an asset utilization ratio of 60.94 percent. This suggests that the Company is making 0.61 for each dollar of assets. An increasing asset utilization means that Vale SA is more efficient with each dollar of assets it utilizes for everyday operations.Vale SA Ownership Allocation
Vale SA shows a total of 5.13 Billion outstanding shares. About 77.51 % of Vale SA outstanding shares are held by general public with 0.009 (%) owned by insiders and only 22.48 % by institutional holders. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Vale SA Profitability Analysis
The company reported the revenue of 54.5 B. Net Income was 121.23 B with profit before overhead, payroll, taxes, and interest of 176.26 B.About Vale SA Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Vale SA. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Vale SA based exclusively on its fundamental and basic technical indicators. By analyzing Vale SA's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Vale SA's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Vale SA. We calculate exposure to Vale SA's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Vale SA's related companies.Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil. VALE S operates under Industrial Metals Minerals classification in Mexico and is traded on Mexico Stock Exchange.
8 Steps to conduct Vale SA's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Vale SA's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Vale SA's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Vale SA's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Vale SA's revenue streams: Identify Vale SA's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Vale SA's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Vale SA's growth potential: Evaluate Vale SA's management, business model, and growth potential.
- Determine Vale SA's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Vale SA's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Other Information on Investing in Vale Stock
Vale SA financial ratios help investors to determine whether Vale Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Vale with respect to the benefits of owning Vale SA security.