Vale SA EBITDA vs. Current Valuation

VALE Stock  ARS 5,250  100.00  1.87%   
Based on the key profitability measurements obtained from Vale SA's financial statements, Vale SA may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Vale SA's ability to earn profits and add value for shareholders.
For Vale SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Vale SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Vale SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Vale SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Vale SA over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Vale SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vale SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vale SA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Vale SA Current Valuation vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Vale SA's current stock value. Our valuation model uses many indicators to compare Vale SA value to that of its competitors to determine the firm's financial worth.
Vale SA is rated first in ebitda category among its peers. It is rated first in current valuation category among its peers reporting about  424.48  of Current Valuation per EBITDA. Comparative valuation analysis is a catch-all model that can be used if you cannot value Vale SA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Vale SA's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Vale Current Valuation vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Vale SA

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
34.02 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Vale SA

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
14.44 T
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Vale Current Valuation vs Competition

Vale SA is rated first in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Other Industrial Metals & Mining industry is at this time estimated at about 15.39 Trillion. Vale SA totals roughly 14.44 Trillion in current valuation claiming about 94% of all equities under Other Industrial Metals & Mining industry.

Vale Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Vale SA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Vale SA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Vale SA's important profitability drivers and their relationship over time.

Use Vale SA in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Vale SA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vale SA will appreciate offsetting losses from the drop in the long position's value.

Vale SA Pair Trading

Vale SA Pair Trading Analysis

The ability to find closely correlated positions to Vale SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vale SA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Vale SA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Vale SA to buy it.
The correlation of Vale SA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Vale SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vale SA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Vale SA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Vale SA position

In addition to having Vale SA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Precious Metals ETFs
Precious Metals ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Precious Metals ETFs theme has 28 constituents at this time.
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Other Information on Investing in Vale Stock

To fully project Vale SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Vale SA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Vale SA's income statement, its balance sheet, and the statement of cash flows.
Potential Vale SA investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Vale SA investors may work on each financial statement separately, they are all related. The changes in Vale SA's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Vale SA's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.