Latest Ratios: P/E Ratio 26.0x · EV/EBITDA 5.5x · ROE 7.2%. (2000–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $65.9B | $55.7B | $37.9B | $69.3B | $78.8B | $70.3B | $86.0B | $67.7B | $68.5B | $63.6B | $39.6B |
| Enterprise Value | $77.8B | $67.7B | $50.7B | $82.5B | $89.5B | $75.8B | $94.0B | $81.5B | $81.7B | $81.7B | $66.2B |
| P/E Ratio → | 26.02 | 22.47 | 6.47 | 8.67 | 4.19 | 3.13 | 16.59 | — | 9.99 | 11.65 | 9.90 |
| P/S Ratio | 1.72 | 1.46 | 1.00 | 1.66 | 1.80 | 1.29 | 2.17 | 1.88 | 1.87 | 1.87 | 1.44 |
| P/B Ratio | 1.87 | 1.62 | 1.10 | 1.70 | 2.11 | 1.99 | 2.47 | 1.74 | 1.53 | 1.38 | 0.97 |
| P/FCF | 21.52 | 18.20 | 13.13 | 9.41 | 13.05 | 3.40 | 8.52 | 7.83 | 7.52 | 7.37 | 27.31 |
| P/OCF | 7.29 | 6.16 | 4.03 | 5.17 | 6.86 | 2.74 | 6.00 | 5.59 | 5.31 | 5.11 | 6.19 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.77 | 1.33 | 1.97 | 2.04 | 1.39 | 2.38 | 2.26 | 2.23 | 2.41 | 2.41 |
| EV / EBITDA | 5.51 | 4.79 | 3.66 | 4.78 | 4.39 | 2.47 | 5.86 | 11.22 | 5.34 | 5.58 | 6.29 |
| EV / EBIT | 7.02 | 6.11 | 6.32 | 6.60 | 4.35 | 2.44 | 10.05 | 5.63 | 9.55 | 7.71 | 6.60 |
| EV / FCF | — | 22.12 | 17.56 | 11.21 | 14.82 | 3.67 | 9.31 | 9.43 | 8.96 | 9.48 | 45.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.4% | 34.4% | 36.2% | 42.3% | 45.2% | 60.1% | 55.6% | 47.2% | 39.6% | 38.1% | 35.8% |
| Operating Margin | 29.0% | 29.0% | 28.3% | 34.0% | 39.3% | 50.8% | 32.4% | 10.6% | 32.7% | 32.2% | 25.7% |
| Net Profit Margin | 6.5% | 6.5% | 16.2% | 19.1% | 42.9% | 41.2% | 12.3% | -4.6% | 18.8% | 16.2% | 14.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.2% | 7.2% | 16.4% | 20.4% | 51.7% | 64.0% | 13.2% | -4.0% | 15.1% | 12.6% | 10.4% |
| ROA | 3.0% | 3.0% | 7.1% | 8.8% | 21.3% | 24.7% | 5.3% | -1.8% | 7.3% | 5.6% | 4.2% |
| ROIC | 17.7% | 17.7% | 16.0% | 20.9% | 29.1% | 49.7% | 20.1% | 5.2% | 14.7% | 12.4% | 8.2% |
| ROCE | 16.0% | 16.0% | 14.7% | 18.7% | 23.4% | 36.5% | 16.5% | 4.9% | 14.5% | 12.6% | 8.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.56 | 0.56 | 0.51 | 0.41 | 0.41 | 0.49 | 0.62 | 0.54 | 0.42 | 0.49 | 0.75 |
| Debt / EBITDA | 1.37 | 1.37 | 1.28 | 0.97 | 0.76 | 0.56 | 1.34 | 2.91 | 1.24 | 1.54 | 2.94 |
| Net Debt / Equity | — | 0.35 | 0.37 | 0.32 | 0.29 | 0.16 | 0.23 | 0.35 | 0.29 | 0.39 | 0.65 |
| Net Debt / EBITDA | 0.85 | 0.85 | 0.92 | 0.76 | 0.53 | 0.18 | 0.50 | 1.90 | 0.86 | 1.24 | 2.53 |
| Debt / FCF | — | 3.92 | 4.43 | 1.79 | 1.77 | 0.27 | 0.79 | 1.60 | 1.45 | 2.11 | 18.37 |
| Interest Coverage | 7.12 | 7.12 | 7.05 | 9.33 | 17.26 | 16.01 | 3.39 | 3.97 | 5.55 | 3.23 | 4.66 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.15 | 1.15 | 1.03 | 1.28 | 1.12 | 1.47 | 1.67 | 1.23 | 1.68 | 1.45 | 2.01 |
| Quick Ratio | 0.78 | 0.78 | 0.68 | 0.96 | 0.80 | 1.18 | 1.39 | 0.92 | 1.19 | 1.15 | 1.71 |
| Cash Ratio | 0.48 | 0.48 | 0.38 | 0.25 | 0.35 | 0.78 | 0.98 | 0.59 | 0.64 | 0.48 | 0.38 |
| Asset Turnover | — | 0.44 | 0.47 | 0.45 | 0.50 | 0.61 | 0.43 | 0.39 | 0.41 | 0.34 | 0.28 |
| Inventory Turnover | 4.21 | 4.21 | 5.26 | 5.16 | 5.36 | 4.96 | 4.33 | 4.45 | 4.98 | 5.36 | 5.27 |
| Days Sales Outstanding | — | 36.45 | 33.17 | 44.37 | 46.55 | 32.04 | 52.58 | 38.24 | 38.86 | 60.76 | 70.31 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.5% | 6.4% | 10.1% | 8.1% | 8.4% | 19.2% | 3.9% | — | 4.8% | 2.3% | 0.6% |
| Payout Ratio | 144.6% | 144.6% | 62.2% | 70.1% | 35.1% | 60.1% | 68.6% | — | 48.3% | 26.4% | 6.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 4.5% | 15.4% | 11.5% | 23.9% | 32.0% | 6.0% | — | 10.0% | 8.6% | 10.1% |
| FCF Yield | 4.6% | 5.5% | 7.6% | 10.6% | 7.7% | 29.4% | 11.7% | 12.8% | 13.3% | 13.6% | 3.7% |
| Buyback Yield | 0.0% | 0.0% | 1.0% | 3.9% | 7.7% | 7.9% | 0.0% | 0.0% | 1.5% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.5% | 6.4% | 11.1% | 12.0% | 16.0% | 27.1% | 3.9% | 0.0% | 6.3% | 2.3% | 0.6% |
| Shares Outstanding | — | $4.3B | $4.3B | $4.4B | $4.6B | $5.0B | $5.1B | $5.1B | $5.2B | $5.2B | $5.2B |
Legal and Jurisdictional Overhang
According to current market data, VALE trades at a forward P/E of 7.41, which appears to incorporate a significant jurisdictional discount compared to Australian peers like BHP and Rio Tinto, likely reflecting persistent investor anxiety regarding legal liabilities and the volatility of the Brazilian operating environment.
The disparity between the TTM P/E of 25.98 and the forward multiple suggests that the market is pricing in a recovery in earnings, yet the valuation remains compressed relative to global peers. This suggests that investors are demanding a higher risk premium for the company's exposure to non-operational legal provisions and the cyclicality of the Chinese steel market.
Based on reported financial statements, VALE's ROIC has struggled to maintain momentum, hovering between 1.5% and 7.3% over the last ten quarters, which indicates that the company's ability to compound capital is frequently interrupted by non-recurring legal charges and the high cost of safety-related infrastructure investments.
The inconsistent ROIC trend suggests that while the core mining assets remain productive, the overall return on capital is diluted by the massive capital allocation toward dam decommissioning and remediation. This performance gap relative to peers like BHP, which consistently achieves higher returns, warrants further investigation into whether the company's current asset base can generate sustainable long-term value.
As evidenced by recent quarterly data, the company's cash conversion cycle has fluctuated between 25 and 44 days, suggesting that inventory management and the timing of receivables collection are creating meaningful friction in the company's ability to convert operational success into immediate cash for shareholders.
The volatility in the cash conversion cycle appears to be driven by the interplay between inventory buildup and the timing of large-scale logistics operations. Investors should monitor whether these inefficiencies are structural or merely a byproduct of the current commodity price environment, as they directly impact the company's ability to maintain a consistent dividend payout.
Based on an analysis of the company's financial structure, the P/E ratio is a fundamentally flawed metric for VALE, as it is frequently distorted by massive, non-recurring legal provisions that do not reflect the underlying cash-generating capacity of the company's high-grade iron ore assets.
Using P/E to evaluate this business model obscures the true operational health by including accounting charges related to historical tailings dam failures. Analysts should instead prioritize EV/EBITDA or FCF-based metrics, which better capture the company's ability to generate cash from its integrated mine-to-port logistics chain while stripping out the noise of legal settlements.
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying VALE stock.
Vale S.A.'s current P/E ratio is 26.0x. The historical average is 20.1x. This places it at the 86th percentile of its historical range.
Vale S.A.'s current EV/EBITDA is 5.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.9x.
Vale S.A.'s return on equity (ROE) is 7.2%. The historical average is 21.6%.
Based on historical data, Vale S.A. is trading at a P/E of 26.0x. This is at the 86th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Vale S.A.'s current dividend yield is 5.54% with a payout ratio of 144.6%.
Vale S.A. has 34.4% gross margin and 29.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Vale S.A.'s Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.