Raia Drogasil (RADL3.SA)
Consumer · B3 · Brazil
Fundamentals
Valuation and ratings
Raia Drogasil trades at R$18.52, which is 59% above the R$7.51 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 50 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 24.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Raia Drogasil
Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics and dermocosmetics and specialty medicines in Brazil. The company sells its products through stores, telesales, and call centers. Raia Drogasil S.A. was founded in 1905 and is headquartered in São Paulo, Brazil.
RADL3.SA passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Raia Drogasil (RADL3.SA) undervalued?
Against our discounted cash flow estimate of R$7.51, RADL3.SA at R$18.52 is 59% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is RADL3.SA's P/E ratio?
RADL3.SA trades at 24.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.