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 6.79 is considered Overvalued compared with the five-year average of 5.31. The fair price of Vale SA (VALE) is between 9.84 to 13.28 according to relative valuation methord. Compared to the current price of 13.30 USD , Vale SA is Overvalued By 0.15%.
Relative Value
Fair Zone
9.84-13.28
Current Price：13.30
0.15%
Overvalued
7.59
PE
1Y
3Y
5Y
Trailing
Forward
4.80
EV/EBITDA
Vale SA. (VALE) has a current EV/EBITDA of 4.80. The 5-year average EV/EBITDA is 3.79. The thresholds are as follows: Strongly Undervalued below 2.56, Undervalued between 2.56 and 3.17, Fairly Valued between 4.40 and 3.17, Overvalued between 4.40 and 5.01, and Strongly Overvalued above 5.01. The current Forward EV/EBITDA of 4.80 falls within the Overvalued range.
6.99
EV/EBIT
Vale SA. (VALE) has a current EV/EBIT of 6.99. The 5-year average EV/EBIT is 4.74. The thresholds are as follows: Strongly Undervalued below 2.79, Undervalued between 2.79 and 3.76, Fairly Valued between 5.71 and 3.76, Overvalued between 5.71 and 6.69, and Strongly Overvalued above 6.69. The current Forward EV/EBIT of 6.99 falls within the Strongly Overvalued range.
1.48
PS
Vale SA. (VALE) has a current PS of 1.48. The 5-year average PS is 1.48. The thresholds are as follows: Strongly Undervalued below 0.82, Undervalued between 0.82 and 1.15, Fairly Valued between 1.81 and 1.15, Overvalued between 1.81 and 2.14, and Strongly Overvalued above 2.14. The current Forward PS of 1.48 falls within the Historic Trend Line -Fairly Valued range.
5.96
P/OCF
Vale SA. (VALE) has a current P/OCF of 5.96. The 5-year average P/OCF is 4.72. The thresholds are as follows: Strongly Undervalued below 3.06, Undervalued between 3.06 and 3.89, Fairly Valued between 5.55 and 3.89, Overvalued between 5.55 and 6.38, and Strongly Overvalued above 6.38. The current Forward P/OCF of 5.96 falls within the Overvalued range.
15.81
P/FCF
Vale SA. (VALE) has a current P/FCF of 15.81. The 5-year average P/FCF is 8.83. The thresholds are as follows: Strongly Undervalued below 3.27, Undervalued between 3.27 and 6.05, Fairly Valued between 11.61 and 6.05, Overvalued between 11.61 and 14.40, and Strongly Overvalued above 14.40. The current Forward P/FCF of 15.81 falls within the Strongly Overvalued range.
Vale SA (VALE) has a current Price-to-Book (P/B) ratio of 1.38. Compared to its 3-year average P/B ratio of 1.43 , the current P/B ratio is approximately -3.49% higher. Relative to its 5-year average P/B ratio of 1.76, the current P/B ratio is about -21.37% higher. Vale SA (VALE) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 8.96%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 13.39% , the current FCF yield is about -100.00% lower.
1.41
P/B
Median3y
1.43
Median5y
1.76
5.33
FCF Yield
Median3y
8.96
Median5y
13.39
Competitors Valuation Multiple
The average P/S ratio for VALE's competitors is 1.68, providing a benchmark for relative valuation. Vale SA Corp (VALE) exhibits a P/S ratio of , which is -100.00% 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 60.34% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.88 to 10.19.
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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