JBS
Jbs N.V.
$11.95
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 72.2% below fair value
You pay
$11.95
Bear
$35.41
Fair
$42.99
Bull
$50.58
Bear
$35.41
+196.3%
$2.13 × 17x P/E
Fair
$42.99
+259.8%
$2.13 × 20x P/E
Bull
$50.58
+323.3%
$2.13 × 24x P/E
Key Value Driver
Normalized P/E multiple (20x base case)
Implied Market Multiple
5.6x
Summary
Applying a 20x P/E to adjusted EPS of $2.13, the base-case value is $42.99 per share.
Warnings
The company pays out 109% 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 0.1972 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