Sector And Industry Analysis For Companies In The Brazilian Index IBrX 50 CNT.2

Summary

Currently, the P/E and P/S ratio for the IBrX 50 index is 17.4X and 1.3X, respectively.

EWZ volatility will continue in the short term as new election polls come in.

With a PEG of 1.01, IBrX 50 seems to be trading at fair value.

This article is a continuation of my Sector and Industry Analysis article that I wrote about two months ago. In this article, I explain that the IBrX 50 is positively correlated with Ibovespa with a correlation factor of 0.99893 and an R2 of 0.99785. I also demonstrated that my data on the IBrX 50 can be applied to the equity returns of the iShares MSCI Brazil Capped ETF (EWZ), as it is an almost full replication of the Bovespa index.

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