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Added to YB: 2024-02-14

Pitch date: 2024-02-12

VALE [bearish]

Vale S.A.

-28.54%

current return

Author Info

No bio for this author

Company Info

Vale S.A., together with its subsidiaries, produces iron ore and nickel in Asia, the Americas, Europe, and internationally.

Market Cap

BRL 299.8B

Pitch Price

BRL 53.38

Price Target

N/A

Dividend

7.80%

EV/EBITDA

5.01

P/E

9.95

EV/Sales

1.81

Sector

Metals and Mining

Category

value

Show full summary:
[SHORT] Vale: Potential Value Trap Reliant On Weakening Chinese Iron Ore Demand

VALE: Cheap 5-6 P/E & 6% yield but major risks: China property slowdown may slash iron ore demand by 265Mt/yr, prices could hit $63/t (near breakeven) by 2028. Despite stimulus & India, Vale's income already at 2019 level. Dividend may not offset principal loss risk.

Read full article (6 min)