As of January 1st, 2025, the trailing price-to-earnings (P/E) ratio of Brazil’s Bovespa Index stands at 8.07, while the forward P/E ratio is 7.09. The Bovespa Index, commonly referred to as the Ibovespa, serves as the benchmark equity index for the Brazilian stock market, representing the performance of the country’s most actively traded stocks.
The earnings growth of Brazilian companies has struggled significantly in recent years. While 2022 was a decent year for corporate earnings, the following two years were marked by a sharp decline, reflecting a challenging economic environment and weak corporate profitability. As a result, earnings have contracted, dampening investor sentiment. Looking ahead, earnings expectations for 2025 remain subdued, with only modest growth anticipated, indicating continued uncertainty in Brazil’s corporate sector.
| Date | Price | P/E (TTM) Ratio | EPS (TTM) * | Forward P/E Ratio | EPS (Forward) * |
|---|---|---|---|---|---|
| 12/31/2024 | 120,283.40 | 8.07 | 96.80 | 7.09 | 110.11 |
| 6/30/2024 | 123,906.50 | 8.41 | 95.65 | 7.17 | 112.16 |
| 12/31/2023 | 134,185.20 | 8.72 | 99.90 | 8.18 | 106.47 |
| 6/30/2023 | 118,087.00 | 6.82 | 112.34 | 7.64 | 100.32 |
| 12/31/2022 | 109,734.60 | 5.69 | 125.09 | 6.81 | 104.59 |
| 6/30/2022 | 98,541.95 | 5.48 | 116.77 | 5.93 | 107.86 |
| 12/31/2021 | 104,822.44 | 6.80 | 100.00 | 7.51 | 90.59 |
* The table presents both trailing and forecasted Earnings Per Share (EPS), with values indexed to a base of 100 as of January 1, 2022. EPS (TTM) reflects the aggregate earnings of the Ibovespa index stocks for the past 12 months and is calculated using the net income of the companies. EPS (Forward) is the forecasted (analyst consensus) earnings per share for the next 12 months and is calculated using the estimated operating profit of the companies.
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The Bovespa Index
The Bovespa Index (Índice Bovespa or Ibovespa) is the leading benchmark index of the Brazilian stock market, tracking the performance of the most actively traded stocks on the B3 stock exchange (Brasil Bolsa Balcão SA). The index consists of 70 companies from various sectors, representing a significant portion of Brazil’s equity market. Many of these companies are also dual-listed on international exchanges, such as the New York Stock Exchange (NYSE), allowing foreign investors greater access to Brazilian equities.
The Ibovespa is a free-float adjusted, market capitalization-weighted index, meaning that companies with a higher market value and greater liquidity have a larger influence on its performance. Unlike price-based indices, the Ibovespa is a total return index, which means that it accounts not only for share price movements but also for dividends and other cash distributions paid by its constituent companies.
The index is compiled and managed by B3, formerly known as BM&FBOVESPA, the primary stock exchange operator in Brazil. B3 periodically reviews and rebalances the index to ensure it continues to reflect the Brazilian stock market’s most representative and liquid securities.