SLC Agrícola S.A. is one of Brazil's largest producers of agricultural commodities, with a business model focused on large scale agriculture. Its main activities are the cultivation, harvest and sale of cotton, soybeans and corn. The company also produces and sells soybeans and cotton seeds and has a complementary livestock operation. Its production units are located in several Brazilian Cerrado states, including Mato Grosso, Bahia and the MATOPIBA region. The company operates with a business model that combines owning its own land with the rental of land for planting, allowing for capital optimization and the expansion of cultivated land. The sale of production is linked to international prices, and the company uses hedging strategies to mitigate price and exchange risks.
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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