VALE Relative Valuation
VALE'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, VALE is overvalued; if below, it's undervalued.
Historical Valuation
Vale SA (VALE) is now in the Overvalued zone, suggesting that its current forward PE ratio of 7.13 is considered Overvalued compared with the five-year average of 5.29. The fair price of Vale SA (VALE) is between 9.01 to 12.02 according to relative valuation methord. Compared to the current price of 12.17 USD , Vale SA is Overvalued By 1.26%.
Relative Value
Fair Zone
9.01-12.02
Current Price：12.17
1.26%
Overvalued
7.13
PE
1Y
3Y
5Y
Trailing
Forward
4.38
EV/EBITDA
Vale SA. (VALE) has a current EV/EBITDA of 4.38. The 5-year average EV/EBITDA is 3.76. The thresholds are as follows: Strongly Undervalued below 2.52, Undervalued between 2.52 and 3.14, Fairly Valued between 4.38 and 3.14, Overvalued between 4.38 and 5.00, and Strongly Overvalued above 5.00. The current Forward EV/EBITDA of 4.38 falls within the Overvalued range.
6.24
EV/EBIT
Vale SA. (VALE) has a current EV/EBIT of 6.24. The 5-year average EV/EBIT is 4.68. The thresholds are as follows: Strongly Undervalued below 2.76, Undervalued between 2.76 and 3.72, Fairly Valued between 5.64 and 3.72, Overvalued between 5.64 and 6.60, and Strongly Overvalued above 6.60. The current Forward EV/EBIT of 6.24 falls within the Overvalued range.
65.22
PS
Vale SA. (VALE) has a current PS of 65.22. The 5-year average PS is 1.95. The thresholds are as follows: Strongly Undervalued below -8.30, Undervalued between -8.30 and -3.17, Fairly Valued between 7.08 and -3.17, Overvalued between 7.08 and 12.20, and Strongly Overvalued above 12.20. The current Forward PS of 65.22 falls within the Strongly Overvalued range.
5.68
P/OCF
Vale SA. (VALE) has a current P/OCF of 5.68. The 5-year average P/OCF is 4.70. The thresholds are as follows: Strongly Undervalued below 3.02, Undervalued between 3.02 and 3.86, Fairly Valued between 5.54 and 3.86, Overvalued between 5.54 and 6.38, and Strongly Overvalued above 6.38. The current Forward P/OCF of 5.68 falls within the Overvalued range.
12.67
P/FCF
Vale SA. (VALE) has a current P/FCF of 12.67. The 5-year average P/FCF is 8.72. The thresholds are as follows: Strongly Undervalued below 3.21, Undervalued between 3.21 and 5.96, Fairly Valued between 11.48 and 5.96, Overvalued between 11.48 and 14.23, and Strongly Overvalued above 14.23. The current Forward P/FCF of 12.67 falls within the Overvalued range.
Vale SA (VALE) has a current Price-to-Book (P/B) ratio of 1.28. Compared to its 3-year average P/B ratio of 1.44 , the current P/B ratio is approximately -11.64% higher. Relative to its 5-year average P/B ratio of 1.77, the current P/B ratio is about -27.74% higher. Vale SA (VALE) has a Forward Free Cash Flow (FCF) yield of approximately 5.78%. Compared to its 3-year average FCF yield of 9.07%, the current FCF yield is approximately -36.34% lower. Relative to its 5-year average FCF yield of 13.51% , the current FCF yield is about -57.25% lower.
1.28
P/B
Median3y
1.44
Median5y
1.77
5.78
FCF Yield
Median3y
9.07
Median5y
13.51
Competitors Valuation Multiple
The average P/S ratio for VALE's competitors is 141.79, providing a benchmark for relative valuation. Vale SA Corp (VALE) exhibits a P/S ratio of 65.22, which is -54.00% above the industry average. Given its robust revenue growth of 8.95%, 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 VALE increased by 29.46% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.88 to 9.24.
The secondary factor is the Revenue Growth, contributed 8.95%to the performance.
Overall, the performance of VALE in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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