Vale SA Valuation

XVALO Stock  EUR 9.80  0.11  1.14%   
At this time, the company appears to be overvalued. Vale SA has a current Real Value of €9.2 per share. The regular price of the company is €9.8. Our model measures the value of Vale SA from inspecting the company fundamentals such as Operating Margin of 0.45 %, shares outstanding of 4.64 B, and Return On Equity of 0.52 as well as reviewing its technical indicators and probability of bankruptcy.
Overvalued
Today
9.80
Please note that Vale SA's price fluctuation is not too volatile at this time. Calculation of the real value of Vale SA is based on 3 months time horizon. Increasing Vale SA's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Vale stock is determined by what a typical buyer is willing to pay for full or partial control of Vale SA. Since Vale SA is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Vale Stock. However, Vale SA's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  9.8 Real  9.2 Hype  9.8 Naive  9.39
The intrinsic value of Vale SA's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Vale SA's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
9.20
Real Value
11.21
Upside
Estimating the potential upside or downside of Vale SA helps investors to forecast how Vale stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Vale SA more accurately as focusing exclusively on Vale SA's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
9.669.769.85
Details
Hype
Prediction
LowEstimatedHigh
7.799.8011.81
Details
Naive
Forecast
LowNext ValueHigh
7.389.3911.40
Details

Vale SA Total Value Analysis

Vale SA is at this time expected to have takeover price of 84.4 B with market capitalization of 73.51 B, debt of 19.85 B, and cash on hands of 6.47 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Vale SA fundamentals before making investing decisions based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
84.4 B
73.51 B
19.85 B
6.47 B

Vale SA Investor Information

About 43.0% of the company outstanding shares are owned by institutional investors. The book value of Vale SA was at this time reported as 39.52. The company last dividend was issued on the 13th of December 2022. Vale SA had 2:1 split on the 22nd of May 2006. Based on the key measurements obtained from Vale SA's financial statements, Vale SA is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.

Vale SA Asset Utilization

One of the ways to look at asset utilization of Vale is to check how much profit was generated for every dollar of assets it reports. Vale SA exercises its assets roughly 0.1484 %, realizing 0.15 cents for each euro of assets held by the company. A flourishing asset utilization indicates the company is being more effective with each euro of assets it has. In other words, asset utilization of Vale SA shows how effective it operates for each euro spent on its assets.

Vale SA Ownership Allocation

Vale SA shows a total of 4.64 Billion outstanding shares. 30% of Vale SA outstanding shares are owned by institutional holders. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.

Vale SA Profitability Analysis

The company reported the revenue of 237.09 B. Net Income was 4.11 B with profit before overhead, payroll, taxes, and interest of 176.26 B.

About Vale SA Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Vale SA. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Vale SA based exclusively on its fundamental and basic technical indicators. By analyzing Vale SA's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Vale SA's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Vale SA. We calculate exposure to Vale SA's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Vale SA's related companies.
Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil. COMPANHIA VALE operates under Industrial Metals Minerals classification in Spain and is traded on Madrid SE C.A.T.S..

8 Steps to conduct Vale SA's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Vale SA's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Vale SA's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Vale SA's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Vale SA's revenue streams: Identify Vale SA's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Vale SA's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Vale SA's growth potential: Evaluate Vale SA's management, business model, and growth potential.
  • Determine Vale SA's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Vale SA's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Other Information on Investing in Vale Stock

Vale SA financial ratios help investors to determine whether Vale Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Vale with respect to the benefits of owning Vale SA security.