- The two direct takeaways from Vale's 2021Q1 earnings call are the company's goal to achieve iron ore 400mtpy production and the CEO's claim that the company is currently undervalued.
- Analysts have previously suggested price targets between $22 and $25 by taking into account the 400mtpy iron ore production and 2020 prices, but Vale has achieved this price target.
- Therefore, this article examined the CEO's claim that Vale is still undervalued and found that the company is indeed undervalued on two grounds.
- These are a revised $27.40 intrinsic value and being priced at the lowest valuation compared to the nine other largest iron ore and nickel mining companies in the world.
For further details see:
Vale's CEO Was Right, This Stock Is An In-Trend And Undervalued Pick-And-Shovel Play