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Companhia Brasileira de Alumínio (CBAV3) Fair Value & Analysis

Basic Materials · BR · Market cap R$7.0B

CB Companhia Brasileira de Alumínio CBAV3 · SA
PriceR$11.12
Fair ValueR$2.92
Upside-73.7%
Quality48/100
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Healthy Growth
Thin margins · 1.4% net margin
Moderate debt · generates free cash flow
0.41% dividend yield
Trails peers (1/14)
Narrow moat 33/100
Evidence: High Range R$2.04 – R$3.79 Share as image

Fair value as of: Jul 16, 2026

From 23 valuation models · updated 25 days ago

Share price +2.6% over the past month.

Below-average quality, and screening another 74% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (R$3.79). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (R$2.04 to R$3.79) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

R$21.23 R$2.83 Fair Value R$2.92 Jul 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range R$2.83 – R$21.23 · fair‑value band R$2.04 – R$3.79 · the R$11.12 price screens above the R$2.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Companhia Brasileira de Alumínio (CBAV3) currently trades at R$11.12, while our model-based Fair Value estimate is R$2.92, implying the stock looks roughly 73.7% overvalued today. The Quality Score stands at 48/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Companhia Brasileira de Alumínio generated revenue of R$8.8B at a net margin of 1.4%. Revenue declined 1.3% year over year. It earns a return on equity of 5.1%. Net debt stands at R$3.2B. Fundamentals as of Jul 16, 2026

Our scenario range runs from R$2.04 (bear case) to R$3.79 (bull case); at R$11.12, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 308% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 19% fair-value upside, at -74%, CBAV3 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF R$0.6900 R$2.95 80
Residual Income R$4.72 R$4.61 R$3.84 76
Rev-Margin DCF R$0.9400 R$3.29 74
All 23 models by family
DCF Models
FCF DCF R$0.8800 R$3.66 38
5Y Revenue Exit R$0.9400 R$3.52 39
5Y EBITDA Exit R$3.41 R$9.42 R$16.54 41
5Y P/E Exit R$0.9200 38
10Y Revenue Exit R$0.6500 R$3.12 36
10Y EBITDA Exit R$1.73 R$6.44 R$12.92 37
10Y P/E Exit R$1.17 35
Earnings-Based
Graham-Dodd R$1.26 R$4.10 R$5.48 54
Lynch FV R$0.9100 R$1.31 R$1.70 50
PEG = 1.0 R$0.9100 R$1.31 R$1.70 46
Dividend Discount
Gordon GGM R$1.28 R$2.55 R$3.86 70
DDM Multi-Stage R$1.28 R$2.12 R$2.69 61
Multiples
P/E Multiple R$2.37 R$3.16 R$3.95 63
P/S Multiple R$2.37 R$3.16 R$3.95 58
P/B Multiple R$2.37 R$3.16 R$3.95 55
EV/EBIT R$0.8700 R$2.19 53
EV/EBITDA R$7.14 R$11.00 R$14.86 54
EV/Revenue R$0.4900 R$1.97 43
Asset-Based
NCAV (Graham) R$3.30 R$4.42 R$6.59 50
Growth DCF
Growth DCF R$0.6900 R$2.95 80
Rev-Margin DCF R$0.9400 R$3.29 74
Economic Profit
Residual Income R$4.72 R$4.61 R$3.84 76
Growth Earnings
Growth-Adj P/E R$2.04 R$2.92 R$3.79 68

Widest divergence: Economic Profit (R$4.61) versus Growth DCF (R$0.6900). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) R$8.8B
Revenue growth (YoY) -1.3%
Net margin 1.4%
Return on equity 5.1%
Free cash flow R$205M FY2025
P/E ratio 56.9
More key figures
Operating margin 12.8%
EPS (TTM) R$0.1900
Dividend yield 0.4%
EPS growth (YoY) +0.5%
Net debt R$3.2B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 45 · Market factors (momentum, volatility) 70

Profitability 23
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 27
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 48
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 67
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Companhia Brasileira de Alumínio produces and sells aluminum products. The company provides bauxite, hydrate, alumina, molten aluminum, ingots, secondary ingots, slabs, billets, rod, caster rolls, and coils, sheets, and services. It also owns and operates hydroelectric power plants.

Full company description

Companhia Brasileira de Alumínio produces and sells aluminum products. The company provides bauxite, hydrate, alumina, molten aluminum, ingots, secondary ingots, slabs, billets, rod, caster rolls, and coils, sheets, and services. It also owns and operates hydroelectric power plants. It operates in Brazil, Netherlands, Canada, the United States, Mexico, Uruguay, Belgium, Germany, Spain, Paraguay, The United Kingdom, Argentina, Colombia, and Internationally. Companhia Brasileira de Alumínio was incorporated in 1941 and is headquartered in São Paulo, Brazil. Companhia Brasileira de Alumínio operates as a subsidiary of Votorantim S.A.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Companhia Brasileira de Alumínio reported revenue of R$8.8B in FY2025 versus R$8.4B in FY2021, a compound +1.1%/yr. Reported net income was R$121M in FY2025, compounding −36.5%/yr from FY2021.

Growth Quality 76/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
R$8.8B
Latest YoY
+7.5%
Avg. growth/yr (3Y)
−0.1%
Avg. growth/yr (5Y)
+10.2%
Avg. growth/yr (12Y)
+7.9%
Revenue +1.1%/yr
FY21 R$8.4B
FY22 R$8.8B
FY23 R$7.3B
FY24 R$8.2B
FY25 R$8.8B
Net income −36.5%/yr
FY21 R$743M
FY22 R$868M
FY23 −R$908M
FY24 −R$181M
FY25 R$121M

CBAV3 screens 74% overvalued. Compare with Shandong Hongqiao Aluminum Industry Holding →

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Cite: Fair Value Calculator (2026). "Companhia Brasileira de Alumínio Fair Value". https://www.fairvalue-calculator.com/stock/CBAV3

Peer Group

Aluminum · 83 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Below median
Fair Value upside −74% · Bottom 25%
Return on equity (TTM) 5% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 1% · Below median
Operating margin (TTM) 13% · Above median
Revenue growth -1% · Below median
Dividend yield (TTM) 0.4% · Below median
Debt / equity 0.96× · Higher than 75% of peers

Valuation Multiples vs Aluminum median · lower = cheaper

P/E (TTM) 56.9× · Pricier than 75% of peers
P/B 1.64× · Pricier than median
P/S (TTM) 0.80× · Pricier than median
P/FCF 6.7× · Pricier than median
EV/EBITDA 10.9× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 15
FUTURE 0 · sector 26
PAST 20 · sector 30
HEALTH 52 · sector 91
DIVIDEND 8 · sector 33

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aluminum stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Shandong Hongqiao Aluminum Industry Holding 002379 ¥18.54 ¥26.70 +44%
China Hongqiao Group 1378 HK$24.54 HK$45.53 +86%
Hindalco Industries Limited HINDALCO ₹955.80 ₹1,026 +7%
Aluminum Corporation 601600 ¥8.11 ¥12.58 +55%
Norsk Hydro ASA NHY kr 84.96 kr 58.10 -32%
Press Metal Aluminium Holdings 8869 8.02 MYR 3.88 MYR -52%
Alcoa Corporation AAI A$70.60 A$49.53 -30%
Yunnan Aluminium Co 000807 ¥25.12 ¥29.68 +18%
Henan Shenhuo Coal Industry and Electricity Power Co 000933 ¥25.51 ¥30.28 +19%
Tianshan Aluminum Group 002532 ¥11.99 ¥21.86 +82%

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Frequently asked questions

Is Companhia Brasileira de Alumínio (CBAV3) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of R$2.92 versus a price of R$11.12, about −74% (overvalued).
What is the fair value of CBAV3?
Our model-based fair value for Companhia Brasileira de Alumínio is R$2.92 (as of Jul 16, 2026), built from audited fundamentals. The current price is R$11.12.
What is the quality score of CBAV3?
Companhia Brasileira de Alumínio has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Companhia Brasileira de Alumínio (CBAV3)?
Companhia Brasileira de Alumínio reported trailing-twelve-month revenue of about R$8.8B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of CBAV3?
The net profit margin of Companhia Brasileira de Alumínio is about 1.4%, meaning it keeps roughly 1.4% of revenue as net income. Based on the latest reported figures.
Does Companhia Brasileira de Alumínio pay a dividend?
Companhia Brasileira de Alumínio currently shows a dividend yield of about 0.41% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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