Petrobras: Illusion Of Cheapness

Roman Vitasek, CFA
510 Followers

Summary

  • Politics drives valuation.
  • Current profits seem unsustainable.
  • Investors are unwilling to close valuation gap.

Přední pohled na hlavní kancelář společnosti Petrobras Petroleo Brasileiro S.A. v Rio de Janeiru, Brazílie

caio acquesta/iStock Editorial via Getty Images

Overview

Petroleo Brasileiro SA (NYSE:PBR) is the biggest Brazilian company and top 7 integrated oil company in the world. During last two years, Petrobras showered its shareholders with dividends, which attracted a lot of attention not

This article was written by

510 Followers
I am a portfolio manager at IAD Investments, an asset management company based in Slovakia. My investment universe are Emerging Markets with the main focus on companies located in Central and Eastern Europe. My goal as a manager is to search for undervalued companies and mistakes in the markets and incorporate these views in the investment portfolio.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PBR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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