BrasilAgro - Companhia Brasileira de Propriedades Agrícola is an agribusiness company with a business model focused on acquiring, developing, and operating farms with agricultural potential. The company's main activity is the production of commodities, such as grains (soybeans and corn), sugar cane and cotton, and raising cattle for beef. The company operates a diverse portfolio of farms located in different regions of Brazil and Paraguay. A central part of its business strategy is the real estate valuation of its land, involving the transformation of degraded pasture areas into arable land and the subsequent partial or total sale of the farms for capital gains.
How many years of EBITDA are required to pay off the company's net debt considering the lease agreements, according to the official accounting standard IFRS16. As a market consensus, a value of up to 3 years of leverage is accepted for most companies.
How much the company's debt represents in % in relation to its equity. As a market consensus, a value less than or equal to 1 is accepted, above that leverage can end up hurting the final result at some point.
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