Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
PDG Realty S.A. Empreendimentos e Participações engages in real estate business in Brazil. The company is involved with the acquisition of land development; real estate development; and construction and sale of residential and commercial units, and land plots. It also offers services related to operations in the secondary market of residential mortgages and credits; and consulting services. In addition, it acquires and securitizes residential mortgage credits and credits from real estate operations and financing; issues certificates of real estate receivables; and conducts hedge operations in derivative markets to cover risks in its portfolio of residential mortgages and real estate loans. The company was incorporated in 1998 and is based in São Paulo, Brazil.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is underpriced on P/FCF.