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Vale S.A. (XVALO) Fair Value & Analysis

Basic Materials · ES · Market cap €53.5B · ISIN BRVALEACNOR0

What is Vale S.A. really worth?

VS Vale S.A. XVALO · MC
Price€13.08
Fair Value€6.62
Upside−49.4%
Quality57/100

A solid business, but trading 98% above our fair value of €6.62.

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Strengths

Moderate debt · generates free cash flow

Risks

!Weak Growth (revenue 5y −0.3 %/yr)
!Thin margins · 7.3% net margin
!Mixed vs. peers (7/12)
!Moderate moat 58/100
!Evidence only medium, so the estimate is less certain
!Weak on future: 14 out of 100
!Weak on past: 27 out of 100
Evidence: Medium Range €5.51 – €8.56

Fair value as of: Aug 20, 2026

From 23 valuation models · updated 16 days ago

Fair value updated Aug 20, 2026, revised from €7.67 to €6.62 (−13.7%) since Aug 13, 2026. Share price +1.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (€8.56). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

€14.94 €7.41 Fair Value €6.62 Dec 2020 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range €7.41 – €14.94 · fair‑value band €5.51 – €8.56 · the €13.08 price screens above the €6.62 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 20, 2026.

Full chart & analysis →

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Analysis

Vale S.A. (XVALO) currently trades at €13.08, while our model-based Fair Value estimate is €6.62, implying the stock looks roughly 97.5% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Basic Materials sector. Bull case: the Multiples group reads highest at a median of €10.05 per share, and 6 of the 23 models we run sit above the €13.08 price. Bear case: the Earnings-Based group reads lowest at €4.91, and 17 of the 23 models stay below the price. Evidence for this calculation is medium.

Revenue grew 2.7% year over year. It earns a return on equity of 6.8%. Net debt stands at €12.0B. The stock trades on a trailing P/E of 22.9. Fundamentals as of Aug 20, 2026

Our scenario range runs from €5.51 (bear case) to €8.56 (bull case); at €13.08, 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 about 13% below its 52-week high and 72% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −37% fair-value upside, at −49%, XVALO screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence €4.00 €6.79 €11.96 78
Growth DCF €4.33 €7.04 €11.67 76
Residual Income €6.55 €6.99 €7.62 76
All 23 models by family
DCF Models
FCF DCF best evidence €4.00 €6.79 €11.96 78
5Y Revenue Exit €5.04 €9.18 €15.22 70
5Y EBITDA Exit €12.95 €22.87 €36.02 73
5Y P/E Exit €3.60 €6.68 €10.38 69
10Y Revenue Exit €4.32 €7.38 €10.69 66
10Y EBITDA Exit €9.38 €15.84 €22.91 68
10Y P/E Exit €3.70 €5.83 €7.85 64
Earnings-Based
Graham-Dodd €4.02 €4.91 €5.53 67
EPV €16.06 €19.25 €22.05 74
Dividend Discount
Gordon GGM €7.85 €8.59 €9.72 69
DDM Multi-Stage €7.85 €9.85 €12.65 67
Multiples
P/E Multiple €7.54 €10.05 €12.56 63
P/S Multiple €7.54 €10.05 €12.56 58
P/B Multiple €7.54 €10.05 €12.56 55
EV/EBIT €24.71 €33.98 €43.25 66
EV/EBITDA €22.21 €30.64 €39.08 67
EV/Revenue €6.49 €10.60 €14.72 52
Asset-Based
NCAV (Graham) €3.94 €5.28 €7.89 54
Growth DCF
Growth DCF €4.33 €7.04 €11.67 76
Rev-Margin DCF €5.04 €9.35 €14.60 71
Economic Profit
Residual Income €6.55 €6.99 €7.62 76
ROIC Compounder €16.06 €20.11 €24.30 72
Growth Earnings
Growth-Adj P/E €5.37 €7.67 €9.97 67

Widest divergence: Multiples (€10.05) versus Earnings-Based (€4.91). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 22.9
P/S ratio 1.48 P/E × margin
EPS (TTM) €0.5700 price ÷ EPS = P/E 22.9
Dividend yield 6.8% payout 156%
Net margin 6.5% FY2025
Return on equity 6.8% TTM
More key figures
Profitability
Return on assets (EBIT) 18.5% avg 5y
Operating margin 28.1% TTM
Growth
Revenue growth (YoY) +2.7% 3y avg −3.9%
EPS growth (YoY) +22.0%
Balance sheet & cash flow
Free cash flow €3.1B FY2025
Net debt €12.0B FY2025 · ≈ 3.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 53 · Market factors (momentum, volatility) 69

Profitability 32
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 56
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 75
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 60
Price trend over the last 3–12 months (market factor)
52W Momentum 78
Distance to the 52-week high (market factor)
Net Issuance 91
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Vale S.A., together with its subsidiaries, produces iron ore and nickel in Brazil, Asia, the Middle East, North Africa, Europe, the Americas, and Oceania. The company operates in two segments, Iron Ore Solutions and Vale Base Metals.

Full company description

Vale S.A., together with its subsidiaries, produces iron ore and nickel in Brazil, Asia, the Middle East, North Africa, Europe, the Americas, and Oceania. The company operates in two segments, Iron Ore Solutions and Vale Base Metals. It extracts, produces, and distributes iron ore, iron ore pellets, briquettes, nickel, copper, other ferrous products, and by-products, including gold, silver, cobalt, platinum-group metals, and other base metals, as well as low-carbon critical minerals. The company also operates logistics systems and distribution centers, such as mining complexes, railways, and maritime terminals, ports, and ships; generates energy from hydroelectric, solar, and wind sources; and engages in greenfield mineral exploration. In addition, it is involved in research; and trading activities. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio De Janeiro, Brazil.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Vale S.A. reported revenue of $38.9B in FY2025 versus $54.5B in FY2021, a compound −8.1%/yr. Reported net income was $2.5B in FY2025, compounding +225.4%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€38.9B
Latest YoY
+2.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.3%
Avg. revenue growth/yr (6Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.6%
Value creation/yr We only publish this rate when it is defensible. Reason: rate outside our plausibility band
not computed
Revenue −8.1%/yr
FY21 $54.5B
FY22 $43.8B
FY23 $41.8B
FY24 $38.1B
FY25 $38.9B
Net income +225.4%/yr
FY21 $22.4M
FY22 $18.8M
FY23 $8.0B
FY24 $6.2B
FY25 $2.5B

XVALO screens 98% overvalued. Compare with BHP Group →

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Cite: Fair Value Calculator (2026). "Vale S.A. Fair Value". https://www.fairvalue-calculator.com/stock/XVALO

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Other Industrial Metals & Mining · 469 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 57 · Top 25%
Fair Value upside −49% · Below median
Return on equity (TTM) 7% · Above median
Return on assets 8% · Top 25%
Net margin (TTM) 7% · Top 25%
Operating margin (TTM) 28% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 6.8% · Top 25%
Debt / equity 0.61× · Higher than 75% of peers

Valuation Multiples vs Other Industrial Metals & Mining median · lower = cheaper

P/E (TTM) 22.9× · Pricier than median
P/FCF 20.0× · Pricier than median
PEG 0.29× · Cheaper than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE14 · sector 38
PAST27 · sector 0
HEALTH69 · sector 96
DIVIDEND100 · sector 38

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

Similar stocks

10 more Other Industrial Metals & Mining stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
BHP Group BHP A$66.84 A$42.16 −37%
Vale S.A VALE $15.31 $8.95 −42%
Saudi Arabian Mining Company 1211 65.50 SAR 33.87 SAR −48%
CMOC Group 603993 ¥18.42 ¥16.15 −12%
Teck Resources Limited TECK $69.34 $32.02 −54%
Hindustan Zinc Limited HINDZINC ₹573.00 ₹508.34 −11%
China Tungsten And Hightech Materials Co 000657 ¥66.76 ¥9.55 −86%
China Northern Rare Earth (Group) High-Tech Co 600111 ¥41.02 ¥10.59 −74%
Western Mining Co 601168 ¥37.85 ¥25.99 −31%
Boliden AB BOL kr 527.80 kr 461.48 −13%

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Frequently asked questions

Is Vale S.A. (XVALO) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of €6.62 versus a price of €13.08, about −49% upside (overvalued).
What is the fair value of XVALO?
Our model-based fair value for Vale S.A. is €6.62 (as of Aug 20, 2026), built from audited fundamentals. The current price: €13.08.
What is the quality score of XVALO?
Vale S.A. has a Quality Score of 57/100. 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 net profit margin of XVALO?
The net profit margin of Vale S.A. is about 7.3%, meaning it keeps roughly 7.3% of revenue as net income. Based on the latest reported figures.
Does Vale S.A. pay a dividend?
Vale S.A. currently shows a dividend yield of about 6.79% relative to its recent price (as of Aug 20, 2026).
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