VALE S.A. American Depositary Shares one common share (VALE) Company Bio
Vale S.A engages in the research, production, and sale of iron ore and pellets, nickel, fertilizer, copper, coal, manganese, ferroalloys, cobalt, platinum group metals, and precious metals in Brazil and internationally. The company was founded in 1942 and is based in Rio de Janeiro, Brazil.
VALE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VALE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Vale SA ranked in the 92th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 3526.33%. The most interesting components of our discounted cash flow analysis for Vale SA ended up being:
As a business, VALE is generating more cash flow than 95.19% of positive cash flow stocks in the Basic Materials.
Vale SA's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 20.64% of tickers in our DCF set.
Vale SA's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as VALE, try ZEUS, NUE, BECN, FMC, and BAK.