JBS
Jbs N.V.
$12.32
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 68.6% below fair value
You pay
$12.32
Bear
$32.36
Fair
$39.29
Bull
$46.22
Bear
$32.36
+162.5%
$1.95 × 17x P/E
Fair
$39.29
+218.8%
$1.95 × 20x P/E
Bull
$46.22
+275.0%
$1.95 × 24x P/E
Adjust Assumptions
20.2x
1.95$
Key Value Driver
Normalized P/E multiple (20x base case)
Implied Market Multiple
6.3x
Summary
Applying a 20x P/E to adjusted EPS of $1.95, the base-case value is $39.29 per share.
Warnings
The company pays out 115% 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 0.1869 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