Braskem SA (BAK)

Market price: $1.19

2 valuation methods

What today’s price implies

This model grows free cash flow at the company's own recent rate of 1.7% a year for 3 years, then eases it down over the next 7 years to 2.5% — the rate a mature economy grows at, which is the standard ceiling for a perpetuity. For this DCF to equal today's price instead, free cash flow would have to grow 15.0% a year over that first 3-year period. That is the market's assumption, not ours.

How each method works

EV / EBITDA: $0.00 to $16.43 (midpoint $4.21)

Values the whole business at a peer multiple of its cash operating earnings (EBITDA) — the workhorse comparison for capital-intensive, profitable companies.

How it’s calculated
We take the company's cash operating earnings over the last twelve months (EBITDA — earnings before interest, taxes, depreciation and amortization) and multiply them by the range of EV/EBITDA multiples comparable companies currently trade at. That gives a value for the whole business (enterprise value); we then subtract net debt and anything owed ahead of common shareholders — minority interests in subsidiaries and preferred stock — and divide by shares outstanding to get a per-share range.
Why it fits this industry
Manufacturers differ widely in plant age and depreciation policy; EBITDA puts capital-intensive industrial peers on level footing.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A company can also deserve a multiple above or below its peers — faster growth, stronger margins, or higher risk all justify honest gaps.

EV / EBITDA = (7.34/10.96/14.79)× ebitda 721,752,322.13 ≈ 5,298,286,050.55/7,911,701,399.33/10,672,581,672.94 (enterprise_value); enterprise_value -> per share: equity (0/950,022,038.05/3,710,902,311.67) / 225,834,326 shares [EV bridge: minus net debt 6,880,188,131.29, minus minority interest & preferred 81,491,229.98]

EV / Revenue: $6.62 to $83.32 (midpoint $44.92)

Values the whole business at a peer multiple of sales — used when earnings are thin, volatile, or not yet meaningful, so revenue is the most reliable yardstick.

How it’s calculated
We multiply the company's last-twelve-month revenue by the range of EV/Revenue multiples its peer group trades at, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding for a per-share range.
Why it fits this industry
When profits are thin, volatile, or still to come, revenue is the most dependable figure a company reports — this method values the business on the scale of what it actually sells.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A pound of revenue is worth more at a high margin than a low one, so the peer group here is narrowed to companies earning a similar margin wherever enough of them exist. Where too few do, the bar falls back to the wider group and is the bluntest of the multiples — weigh it alongside the earnings-based bars.

EV / Revenue = (0.59/1.19/1.79)× revenue 14,433,368,382.39 ≈ 8,456,527,989.72/17,105,736,176.56/25,778,538,253.07 (enterprise_value); enterprise_value -> per share: equity (1,494,848,628.44/10,144,056,815.29/18,816,858,891.80) / 225,834,326 shares [EV bridge: minus net debt 6,880,188,131.29, minus minority interest & preferred 81,491,229.98]

4 methods not shown

Limited data — fewer than three valuation methods could be formed for this company; showing every method we can stand behind.

Debt is most of what funds this company — its shares are about 4% of its total enterprise value. The enterprise-value bars here (2) value the whole business and then subtract the debt, so a small difference in the business's value becomes a large one per share. That is arithmetic, not a fault in the estimate, but it is why those ranges are wide.