Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Operating in Brazil, Grupo Casas Bahia S.A., along with its various subsidiaries, is a prominent retailer specializing in electronics, home appliances, and furniture. Beyond its core retail operations, the company offers a suite of financial services, including popular "buy now pay later" options and credit card services. It also provides extensive logistics solutions such as fulfillment and fullcommerce services, and even manufactures wooden furniture. Customers can additionally benefit from extended warranty and equipment installation services. The group reaches its diverse customer base through both physical retail stores and extensive e-commerce platforms, utilizing a portfolio of well-known brands like Casas Bahia, Ponto, Extra.com, Bartira, banQi, Rede Celer, ASAPLog, and CNT, supported by its distribution centers. Formerly known as Via S.A. until its name change in September 2023, Grupo Casas Bahia S.A. was established in 1946 and is headquartered in São Paulo, Brazil.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is of fair value on EV/EBITDA, undervalue
Target Price
The average target price of BHIA3.SA is 3.1 and suggests 191% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in