JBS
JBS N.V.
$13.21
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 69.6% below fair value
You pay
$13.21
Bear
$35.78
Fair
$43.45
Bull
$51.12
Bear
$35.78
+170.9%
$2.15 × 17x P/E
Fair
$43.45
+228.9%
$2.15 × 20x P/E
Bull
$51.12
+287.0%
$2.15 × 24x P/E
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 $2.15, the base-case value is $43.45 per share.
Warnings
The company pays out 114% 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 0.1993 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