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Bunge (BG): Assessing Undervaluation After Strong Year-to-Date Gains and Recent Pullback

Simply Wall St · 1d ago

Bunge Global (BG) has quietly pulled ahead of the broader market this year, with the stock up about 21% year to date and 11% over the past 3 months despite recent weakness.

See our latest analysis for Bunge Global.

The latest pullback, including a 1 day share price return of minus 0.81 percent, looks more like a breather within a solid year of gains, supported by strong revenue and earnings growth and a five year total shareholder return of 62.28 percent.

If Bunge’s move has you rethinking where growth and income might come from next, this could be a good moment to explore fast growing stocks with high insider ownership.

With earnings expanding faster than sales and the shares still trading below analyst targets, the key question now is whether Bunge remains undervalued or if the market is already pricing in the next leg of growth.

Most Popular Narrative: 9.8% Undervalued

With Bunge Global last closing at $93.63 against a narrative fair value of $103.78, the current gap suggests room for further upside if core assumptions play out.

Digital supply chain advancements and robust sustainability initiatives, combined with a strengthened balance sheet and ample liquidity, are reducing operational risks, lowering costs, and positioning Bunge to attract ESG-focused customers and investors, which in turn is supporting higher earnings quality and valuation multiples.

Read the complete narrative.

Curious how modest revenue growth, flat earnings, and a lower future multiple can still justify a higher value than today? The narrative’s math may surprise you.

Result: Fair Value of $103.78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, shifting biofuel policies and execution risks around the Viterra integration could quickly undermine today’s margin assumptions and derail the undervaluation thesis.

Find out about the key risks to this Bunge Global narrative.

Build Your Own Bunge Global Narrative

If you see the story playing out differently or want to stress test your own assumptions, build a custom view in just minutes: Do it your way.

A great starting point for your Bunge Global research is our analysis highlighting 4 key rewards and 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.