Don't Take a Position in Vale Stocks Without Knowing Its Fundamentals!

By Ken Smith • Saturday, May 18 15:11 • Permanent Link

Large-cap Basic Materials company Vale has moved 2.6% so far today on a volume of 26,159,710, compared to its average of 27,679,006. In contrast, the S&P 500 index moved 0.0%.

Vale trades -18.35% away from its average analyst target price of $15.91 per share. The 22 analysts following the stock have set target prices ranging from $11.0 to $19.0, and on average have given Vale a rating of buy.

Anyone interested in buying VALE should be aware of the facts below:

Vale's current price is -47.8% below its Graham number of $24.88, which implies the stock has a margin of safety
Vale has moved -5.1% over the last year, and the S&P 500 logged a change of 26.5%
Based on its trailing earnings per share of 1.81, Vale has a trailing 12 month Price to Earnings (P/E) ratio of 7.2 while the S&P 500 average is 15.97
VALE has a forward P/E ratio of 6.1 based on its forward 12 month price to earnings (EPS) of $2.13 per share
The company has a price to earnings growth (PEG) ratio of -0.34 — a number near or below 1 signifying that Vale is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 0.3 compared to its sector average of 2.07
Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.