Professional
Added to YB: 2024-07-24
Pitch date: 2024-07-11
VALE [bullish]
Vale S.A.
+32.07%
current return
Author Info
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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 9.61
Price Target
14.20 (+12%)
Dividend
7.80%
EV/EBITDA
5.01
P/E
9.95
EV/Sales
1.81
Sector
Metals and Mining
Category
value
Show full summary:
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.
Read full article (9 min)