GGB Relative Valuation
GGB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GGB is overvalued; if below, it's undervalued.
Historical Valuation
Gerdau SA (GGB) is now in the Fair zone, suggesting that its current forward PE ratio of 8.21 is considered Fairly compared with the five-year average of 5.99. The fair price of Gerdau SA (GGB) is between 2.96 to 4.04 according to relative valuation methord.
Relative Value
Fair Zone
2.96-4.04
Current Price：3.70
Fair
8.21
PE
1Y
3Y
5Y
Trailing
Forward
4.21
EV/EBITDA
Gerdau SA. (GGB) has a current EV/EBITDA of 4.21. The 5-year average EV/EBITDA is 3.63. The thresholds are as follows: Strongly Undervalued below 2.23, Undervalued between 2.23 and 2.93, Fairly Valued between 4.33 and 2.93, Overvalued between 4.33 and 5.03, and Strongly Overvalued above 5.03. The current Forward EV/EBITDA of 4.21 falls within the Historic Trend Line -Fairly Valued range.
6.96
EV/EBIT
Gerdau SA. (GGB) has a current EV/EBIT of 6.96. The 5-year average EV/EBIT is 5.13. The thresholds are as follows: Strongly Undervalued below 2.19, Undervalued between 2.19 and 3.66, Fairly Valued between 6.60 and 3.66, Overvalued between 6.60 and 8.08, and Strongly Overvalued above 8.08. The current Forward EV/EBIT of 6.96 falls within the Overvalued range.
0.53
PS
Gerdau SA. (GGB) has a current PS of 0.53. The 5-year average PS is 0.57. The thresholds are as follows: Strongly Undervalued below 0.38, Undervalued between 0.38 and 0.48, Fairly Valued between 0.67 and 0.48, Overvalued between 0.67 and 0.76, and Strongly Overvalued above 0.76. The current Forward PS of 0.53 falls within the Historic Trend Line -Fairly Valued range.
4.21
P/OCF
Gerdau SA. (GGB) has a current P/OCF of 4.21. The 5-year average P/OCF is 3.83. The thresholds are as follows: Strongly Undervalued below 2.32, Undervalued between 2.32 and 3.08, Fairly Valued between 4.59 and 3.08, Overvalued between 4.59 and 5.34, and Strongly Overvalued above 5.34. The current Forward P/OCF of 4.21 falls within the Historic Trend Line -Fairly Valued range.
11.84
P/FCF
Gerdau SA. (GGB) has a current P/FCF of 11.84. The 5-year average P/FCF is 8.79. The thresholds are as follows: Strongly Undervalued below -0.03, Undervalued between -0.03 and 4.38, Fairly Valued between 13.20 and 4.38, Overvalued between 13.20 and 17.61, and Strongly Overvalued above 17.61. The current Forward P/FCF of 11.84 falls within the Historic Trend Line -Fairly Valued range.
Gerdau SA (GGB) has a current Price-to-Book (P/B) ratio of 0.72. Compared to its 3-year average P/B ratio of 0.76 , the current P/B ratio is approximately -6.00% higher. Relative to its 5-year average P/B ratio of 0.94, the current P/B ratio is about -23.79% higher. Gerdau SA (GGB) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 13.17%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 15.25% , the current FCF yield is about -100.00% lower.
0.72
P/B
Median3y
0.76
Median5y
0.94
1.48
FCF Yield
Median3y
13.17
Median5y
15.25
Competitors Valuation Multiple
The average P/S ratio for GGB's competitors is 1.12, providing a benchmark for relative valuation. Gerdau SA Corp (GGB) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 5.35%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of GGB increased by 29.22% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.10 to 13.31.
The secondary factor is the Revenue Growth, contributed 5.35%to the performance.
Overall, the performance of GGB in the past 1 year is driven by P/E Change. Which is more unsustainable.
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