Brava Energia is an integrated Brazilian energy company, resulting from the merger of 3R Petroleum and Enauta, operating in the oil and gas sector. Its activities cover the exploration and production (upstream) of oil and natural gas, as well as refining, logistics, and trading of derivatives (downstream). Upstream operations are divided into onshore assets in the Potiguar and Recôncavo basins, and offshore assets, with fields such as Atlanta and Papa-Terra. The downstream segment focuses on the Potiguar Pole, which includes the Clara Camarão Refinery, a waterway terminal and natural gas processing units. Through this structure, Brava produces and sells crude oil, gas and various derivatives, such as fuel, gasoline and LPG, for domestic and international markets.
Market capitalization, or "market cap", is the aggregate market value of a company represented in a dollar amount. Since it represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares.
Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company's balance sheet.
The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company's enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. It's also called the enterprise value-to-sales multiple.
The enterprise value to earnings before interest, taxes, depreciation, and amortization ratio (EV/EBITDA) compares the value of a company—debt included—to the company's cash earnings less non-cash expenses. It's best to use the EV/EBITDA metric when comparing companies within the same industry or sector. Typically, when evaluating a company, an EV/EBITDA value below 10 is seen as healthy.
It follows the same logic as the EV/EBITDA indicator, but instead of EBITDA, EBIT is used, which considers non-cash D&A expenses in the company's operating result.
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