Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. Braskem's business operations consist of four production segments and one distribution segment: Basic Petrochemicals Unit, Polyolefins, Vinyls, United States and Europe, and Chemical distribution. The company is also engaged in the import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, as well as the provision of industrial services and the production, supply and sale of electric energy for its own use and use by other companies. The company was founded in 1972 and is based in Camacari, Brazil.
BAK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Braskem Sa with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Braskem Sa ranked in the 93th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for BAK, they are:
The company has produced more trailing twelve month cash flow than 95.8% of its sector Basic Materials.
36% of the company's capital comes from equity, which is greater than merely 22.92% of stocks in our cash flow based forecasting set.
Braskem Sa's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 10.19% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SIM, VALE, ZEUS, NUE, and DOW can be thought of as valuation peers to BAK, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.