Professional
Added to YB: 2024-07-24
Pitch date: 2024-07-11
VALE [bullish]
Vale S.A.
+65%
current return
Author Info
No bio for this author
Company Info
Vale S.A., together with its subsidiaries, produces iron ore and nickel in Brazil, Asia, the Middle East, North Africa, Europe, the Americas, and Oceania.
Market Cap
BRL 339.6B
Pitch Price
BRL 9.78
Price Target
14.20 (-12%)
Dividend
6.88%
EV/EBITDA
5.47
P/E
24.63
EV/Sales
1.96
Sector
Metals and Mining
Category
value
Vale S.A.: In the Mining Sector, There's Value in Mineral Sands, Gold, Iron Ore, and Thermal Coal
Vale: No-moat iron ore miner, 19% below fair value. 80% EBIT from iron ore. Middling cost curve position. $14.20 PT. Risks: China demand, currency, tailings dam liabilities. Iron ore $70/t, copper $3.65/lb midcycle. Poor capital allocation history. 9.3% WACC, 6.5x EV/EBITDA multiple. Potential base metal asset rationalization.
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