JBS
Jbs N.V.
$12.47
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 69.6% below fair value
You pay
$12.47
Bear
$33.78
Fair
$41.02
Bull
$48.25
Bear
$33.78
+170.8%
$2.03 × 17x P/E
Fair
$41.02
+228.8%
$2.03 × 20x P/E
Bull
$48.25
+286.8%
$2.03 × 24x P/E
Adjust Assumptions
20.2x
2.03$
Key Value Driver
Normalized P/E multiple (20x base case)
Implied Market Multiple
6.1x
Summary
Applying a 20x P/E to adjusted EPS of $2.03, the base-case value is $41.02 per share.
Warnings
The company pays out 110% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Financial statements were converted from BRL into USD using USDBRL at 0.1951 USD per BRL.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples