The table below lists the current & past price-to-earnings ratios of the Bovespa index. The current trailing P/E ratio of the Ibovespa is 32.51 (12/31/2020). The Ibovespa is considered to be the benchmark equity index for the Brazilian stock market. The current P/E is considerably higher than the average historical ratio of the index which could indicate that the Brazilian equity market is currently overvalued.
Note: When we have calculated the trailing P/E ratio, we have not considered the US$13.4 billion write-off that Petrobras posted as part of their 2020 Q1 results. If this impairment expense is taken account, the trailing P/E ratio of the Bovespa index is as high as 104.09.
Bovespa (IBOV) Index – Price-Earnings (P/E) Ratios
For the latest and full historical valuation data of the Brazilian stock market, purchase the Global Equity Valuations Researcher Dataset by Siblis Research that provides current and historical P/E (TTM) ratios, forward P/E ratios, CAPE ratios, dividend yields, market cap to GNI ratios, sector breakdowns and long-term interest rates of the largest economies and stock markets in the world. Check a sample dataset from here.
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The Bovespa Index
The Bovespa index (Índice Bovespa or Ibovespa) consists of 70 companies that are traded on the B3 stock exchange. Many of these companies are also listed on the New York Stock Exchange. The index constituents are weighted by free float adjusted market capitalization. Ibovespa is a total return index which means that the index value takes account also dividends and other distributions in addition to share price increases. The index is compiled and managed by B3 (Brasil Bolsa Balcão SA, formerly known as BM&FBOVESPA.)