Petroleo Brasileiro or Petrobras is the largest oil company in Brazil and one of the largest oil producing companies in the world.
Petrobras is currently valued at 63.4 billion USD. According to my estimates, the intrinsic value of Petroleo Brasileiro or Petrobras is 300 billion USD.
Petroleo Brasileiro or Petrobras is a deep sea oil driller. At around 57 USD or more price of oil Petrobras is profitble.
I think the price of oil could easily surpass 140 USD in 3 years time on oil supply disruptions due to the military confrontation between Russia and Ukraine.
In addition, the dividends yield on Petroleo Brasileiro or Petrobras currently stands at 63 %.
Petroleo Brasileiro or Petrobras is a classic Benjamin Graham value, undervalued stock. I think Petrobras would also fit Warren Buffett's investment criteria.
In general, I think oil and hydrocarbon's demise and decline in general, if not premature is exaggerated.
Green energy is simply not ready.
Petroleo Brasileiro or Petrobras carries a political risk, of course, with the socialist inclination of the current government in Brazil.
In short, however Petroleo Brasileiro or Petrobras is a classic, undervalued, huge recurring revenue and profitability company.
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