Latest Ratios: P/E Ratio 23.8x · EV/EBITDA 5.0x · 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 | $58.9B | $55.7B | $37.9B | $69.3B | $78.8B | $70.3B | $86.0B | $67.7B | $68.5B | $63.6B | $39.6B |
| Enterprise Value | $70.9B | $67.7B | $50.7B | $82.5B | $89.5B | $75.8B | $94.0B | $81.5B | $81.7B | $81.7B | $66.2B |
| P/E Ratio → | 23.83 | 22.47 | 6.47 | 8.67 | 4.19 | 3.13 | 16.59 | — | 9.99 | 11.65 | 9.90 |
| P/S Ratio | 1.54 | 1.46 | 1.00 | 1.66 | 1.80 | 1.29 | 2.17 | 1.88 | 1.87 | 1.87 | 1.44 |
| P/B Ratio | 1.71 | 1.62 | 1.10 | 1.70 | 2.11 | 1.99 | 2.47 | 1.74 | 1.53 | 1.38 | 0.97 |
| P/FCF | 19.26 | 18.20 | 13.13 | 9.41 | 13.05 | 3.40 | 8.52 | 7.83 | 7.52 | 7.37 | 27.31 |
| P/OCF | 6.52 | 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 | 5.02 | 4.79 | 3.66 | 4.78 | 4.39 | 2.47 | 5.86 | 11.22 | 5.34 | 5.58 | 6.29 |
| EV / EBIT | 6.40 | 10.69 | 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 | 4.07 | 4.07 | 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 | 6.1% | 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 | 4.2% | 4.5% | 15.4% | 11.5% | 23.9% | 32.0% | 6.0% | — | 10.0% | 8.6% | 10.1% |
| FCF Yield | 5.2% | 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 | 6.1% | 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 |
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 23.8x. 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 5.0x. 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 23.8x. 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 6.05% 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.
Key Metrics
Top Statement Risk
Legal provisions and Chinese demand
Deep Value Discount vs. Peers
Vale trades at a significant discount to peers, with a forward P/E of 8.28 versus BHP's 26.73 and Rio Tinto's 16.93, suggesting the market is pricing in substantial jurisdictional and legal risk.
The forward EV/EBITDA of 5.09 is less than half of BHP's 10.47, indicating the market expects Vale's future cash flows to be worth far less per dollar of earnings. This discount appears to reflect the persistent 'Brazil discount' and the overhang of tailings dam liabilities, which may be obscuring the value of its high-grade ore assets. The 5.6% dividend yield, nearly double that of Rio Tinto, further underscores the market's skepticism about the sustainability of its cash flows.
Gross Strength Masked by Net Erosion
A trailing net margin of 6.47% starkly contrasts with a gross margin of 34.37%, indicating that non-operational costs, likely legal provisions, are severely eroding Vale's underlying earning power.
The persistent gap between the 28.98% operating margin and the 6.47% net margin suggests that significant non-cash charges, such as those related to the Renova Foundation and Brumadinho remediation, are recurring and weigh heavily on reported profitability. This distortion makes the net margin a poor indicator of true operational efficiency. Investors should focus on the gross margin and operating margin as better reflections of the core mining business's cost discipline and pricing power.
Capital Returns Lagging Global Peers
Vale's ROIC of 3.9% in 2026Q2 is dramatically lower than Rio Tinto's 15.3% and BHP's 24.0%, suggesting its capital base is generating significantly less value than its primary competitors.
The low ROIC, despite a strong gross margin, points to a combination of factors: a large asset base burdened by legacy liabilities, high capital expenditure requirements for safety upgrades, and the dilutive effect of non-operational provisions on the equity base. The trend has been volatile, with ROIC swinging from 5.7% in 2024Q2 to 3.9% currently, indicating inconsistent capital efficiency. This underperformance is a key reason for the valuation discount relative to its Australian peers.
Stable Leverage Amidst Equity Volatility
The debt-to-equity ratio has remained stable between 0.42 and 0.56 over the last ten quarters, but this stability is partly an artifact of massive swings in the equity base due to provisions.
While the D/E ratio appears controlled, the underlying equity has been highly volatile, collapsing in 2025Q4 due to large net losses. This suggests that the headline leverage metric may not fully capture the balance sheet's true risk profile. The interest coverage ratio of 7.49x in 2026Q2 is adequate, but the negative coverage in 2025Q4 (-3.85x) highlights how quickly earnings can be overwhelmed by non-operational charges, potentially stressing debt service capacity in a downturn.
Adequate Buffer Sensitive to Cash Swings
The current ratio of 1.19 and quick ratio of 0.77 indicate a tight but adequate liquidity position, heavily dependent on cash generation which has been volatile.
The quick ratio below 1.0 suggests that Vale cannot cover all current liabilities without selling inventory, which is typical for a capital-intensive miner but leaves little room for error. The cash position has fluctuated significantly, from $3.8B to $7.4B over the period, making the liquidity buffer sensitive to working capital swings and the timing of large dividend payments. In a severe stress scenario, such as a sharp drop in iron ore prices, the company's ability to meet short-term obligations would rely heavily on its access to credit facilities.
The Misleading Net Margin
The net margin is the ratio most commonly misapplied to Vale, as it is heavily distorted by massive, non-cash legal provisions that do not reflect the operational cash-generating ability of its core iron ore business.
Analysts and investors often use net margin to gauge profitability, but for Vale, this metric is rendered nearly meaningless by recurring, multi-billion dollar charges related to historical dam failures. These provisions create a volatile and depressed net margin that obscures the strong underlying margins of the mining operations. A more appropriate metric for assessing core operational health is the gross margin or a 'Pro-forma EBITDA' margin that excludes these specific, non-recurring legal settlements.