Gerdau SA Valuation
| GGBR4 Preferred Stock | BRL 17.58 0.13 0.74% |
At this time, the firm appears to be overvalued. Gerdau SA retains a regular Real Value of R$15.88 per share. The prevalent price of the firm is R$17.58. Our model calculates the value of Gerdau SA from evaluating the firm fundamentals such as Current Valuation of 54.97 B, return on equity of 0.3, and Return On Asset of 0.15 as well as inspecting its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Gerdau SA's price fluctuation is not too volatile at this time. Calculation of the real value of Gerdau SA is based on 3 months time horizon. Increasing Gerdau 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 Gerdau preferred stock is determined by what a typical buyer is willing to pay for full or partial control of Gerdau SA. Since Gerdau SA is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Gerdau Preferred Stock. However, Gerdau 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 17.58 | Real 15.88 | Hype 17.58 | Naive 16.97 |
The intrinsic value of Gerdau 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 Gerdau 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.
Estimating the potential upside or downside of Gerdau SA helps investors to forecast how Gerdau preferred 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 Gerdau SA more accurately as focusing exclusively on Gerdau SA's fundamentals will not take into account other important factors: Gerdau SA Total Value Analysis
Gerdau SA is currently projected to have takeover price of 54.97 B with market capitalization of 46.49 B, debt of 12.92 B, and cash on hands of 2.14 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 Gerdau SA fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
54.97 B | 46.49 B | 12.92 B | 2.14 B |
Gerdau SA Investor Information
About 50.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.08. Some equities with similar Price to Book (P/B) outperform the market in the long run. Gerdau SA recorded earning per share (EPS) of 8.05. The entity last dividend was issued on the 22nd of November 2022. The firm had 5:6 split on the 17th of April 2024. Based on the key measurements obtained from Gerdau SA's financial statements, Gerdau SA is not in a good financial situation at the moment. It has a very high risk of going through financial straits in March.Gerdau SA Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gerdau SA has an asset utilization ratio of 106.14 percent. This implies that the Company is making R$1.06 for each dollar of assets. An increasing asset utilization means that Gerdau SA is more efficient with each dollar of assets it utilizes for everyday operations.Gerdau SA Ownership Allocation
Gerdau SA has a total of 1.14 Billion outstanding shares. Over half of Gerdau SA's outstanding shares are owned by outside corporations. These outside corporations are typically referred to as corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Gerdau SA. Please watch out for any change in the institutional holdings of Gerdau SA as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.Gerdau SA Profitability Analysis
The company reported the revenue of 78.35 B. Net Income was 15.49 B with profit before overhead, payroll, taxes, and interest of 20.82 B.About Gerdau SA Valuation
The preferred stock valuation mechanism determines Gerdau SA's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Gerdau SA based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gerdau SA. We calculate exposure to Gerdau SA's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Gerdau SA's related companies.Gerdau S.A. provides steel-related products and services worldwide. The company was founded in 1901 and is based in Sao Paulo, Brazil. GERDAU PN operates under Steel classification in Brazil and is traded on Sao Paolo Stock Exchange.
8 Steps to conduct Gerdau SA's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Gerdau 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 Gerdau SA's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Gerdau SA's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Gerdau SA's revenue streams: Identify Gerdau SA's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Gerdau SA's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Gerdau SA's growth potential: Evaluate Gerdau SA's management, business model, and growth potential.
- Determine Gerdau 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 Gerdau 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.
Additional Tools for Gerdau Preferred Stock Analysis
When running Gerdau SA's price analysis, check to measure Gerdau SA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gerdau SA is operating at the current time. Most of Gerdau SA's value examination focuses on studying past and present price action to predict the probability of Gerdau SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gerdau SA's price. Additionally, you may evaluate how the addition of Gerdau SA to your portfolios can decrease your overall portfolio volatility.