Brazilian Technology Stocks: Understanding the Metrics
TL;DR
- Classification matters: FundamentalRadar uses CVM's official regulator labels ("Programas e Serviços", "Computadores e Equipamentos") to group Brazilian tech companies, not broad industry buckets.
- Medians summarize: P/E, P/B, ROE, and dividend yield are presented as medians across companies, ignoring outliers that could distort the picture.
- Coverage varies: Dividend yield on sector pages counts only payers ("payers only"), while company-level pages report zeros for true non-payers.
How FundamentalRadar Classifies Brazilian Technology Companies
Brazilian technology stocks on B3 (Bolsa de Valores de São Paulo) are classified under specific regulator-mandated sector labels. The CVM (Brazilian Securities Commission) assigns companies to detailed categories that may differ from common industry groupings.
The English sector page at /en/sectors/tecnologia uses two official labels:
| Label | Description | Typical Companies |
|---|---|---|
| Programas e Serviços | Software and services providers | TOTVS, Locaweb, Stone |
| Computadores e Equipamentos | Hardware and equipment makers | Dell Brazil, Multilaser |
These labels are matched exactly by normalized comparison (case-insensitive, accent-stripped). The page groups both labels under the "Technology" preset, showing how multiple regulator categories can aggregate under a broader industry theme. For broader context, compare the guides to P/E ratios, P/B ratios, and ROE before interpreting any sector ranking.
Learn more about sector classification
Key Metrics Displayed
Price-to-Earnings (P/E) Ratio
The P/E ratio compares a company's share price to its earnings per share. On the sector page, the Median P/E represents the middle value of all companies meeting the classification criteria.
- Interpretation: Higher P/E may indicate growth expectations; lower P/E may signal value or challenges
- Calculation basis: Calculated from fiscal-year or trailing-twelve-month earnings
- Source limitation: Not applicable to funds or companies with negative earnings
Price-to-Book (P/B) Ratio
P/B divides market capitalization by book value (shareholders' equity). The Median P/B on the sector page shows the central tendency of valuation relative to accounting value.
- Interpretation: P/B below 1 may suggest undervaluation; above 5 could indicate richly valued growth
- Book value source: From audited financial statements
- Market cap: Based on shares outstanding and current trading price
Return on Equity (ROE)
ROE measures profitability relative to equity capital. The Median ROE on sector pages reflects the middle-ranked company's return.
- Interpretation: Higher ROE typically indicates efficient capital use
- Range in technology: Brazilian tech companies showed median ROE of approximately 17-20% in 2025
- Source: Company annual reports, filed with CVM
Dividend Yield
The dividend yield shows annual distributions relative to share price. On the sector summary page, the median accounts for the payers only qualifier.
- Calculation: Annual dividends per share ÷ Current price × 100
- Technology sector context: Many tech companies retain earnings for growth, resulting in lower yields
- 2026 reference: Brazilian market-wide dividend yield averaged 5-8%
Learn about dividend sustainability
Market Capitalization and Sizing
Market cap (market capitalization) represents total equity value:
On the sector page, individual company market caps appear in the ranking table. The median market cap for the technology sector in 2026 was approximately USD 15-20 billion.
Medians vs. Averages: Why Median Matters
The sector summary displays medians, not averages. This choice is deliberate and significant:
| Statistic | What It Shows | Sensitivity |
|---|---|---|
| Median P/E | Middle company's valuation | Low |
| Average P/E | Sum of all values ÷ count | High (affected by outliers) |
The page explicitly notes: "Figures are medians, ignoring implausible outliers." This methodology prevents extreme values from obscuring the typical company's characteristics.
Rankings and Leaders
The "Technology leaders" section ranks companies by ROE:
| Rank | Ticker | ROE | Company |
|---|---|---|---|
| 01 | TOTS3 | ~17% | TOTVS |
| 02 | CMGC3 | ~15% | Contralato |
| 03 | CIMC3 | ~14% | CIM Estamparia |
Source: Company filings and screener data as of August 2026.
Coverage and Missing Data
Not every company in a sector has complete data. The system applies specific rules:
| Field | Missing Data Treatment |
|---|---|
| P/E | Null when earnings ≤ 0 |
| P/B | Null when book value ≤ 0 |
| ROE | Null when equity ≤ 0 |
| Dividend Yield | 0.00 is a measurement for companies paying nothing |
The comment section header reads: "Median dividend yield counts payers only." This means:
- Companies with no dividend appear as "—" (no yield)
- The median excludes zeros because they represent non-payers, not measured yields
- A zero dividend yield value for an individual company is a factual measurement
Data Freshness
All figures derive from the latest screener snapshot available at page request. The page footer states: "Computed on request from the latest screener snapshot."
Data latency considerations:
- Prices update in real-time during market hours
- Financial metrics (P/E, ROE) come from periodic filings
- Dividend data reflects declared but unpaid distributions
Common Errors and Fixes
| Error | Cause | Fix | Source |
|---|---|---|---|
| Missing P/E | Company with losses or zero earnings | Accept that valuation multiples don't apply | Investopedia |
| Zero in dividend yield | Company pays no dividend | Understand "payers only" median excludes these | FundamentalRadar |
| High P/B ratio | Low book value or inflated market cap | Research asset quality and accounting treatment | Company reports |
| Low ROE | High equity base relative to profits | Check for recent acquisitions or retained earnings | Annual reports |
Frequently Asked Questions
Q: Why does the technology sector have different P/E medians than the overall market?
A: The technology sector includes companies with distinct growth profiles and profitability levels. The Brazilian market as a whole trades around 11x P/E (August 2026), while technology companies often show higher multiples reflecting growth expectations.
Q: Can I use the median dividend yield to pick stocks?
A: The median shows sector tendencies, not individual stock recommendations. A company's actual yield may differ from the sector median based on its specific payout policy. Review each company's dividend history before making decisions.
Q: What does "payers only" mean for dividend yield?
A: The median calculation excludes companies with zero dividends because "zero" is a measured distribution, not missing data. Including non-payers would artificially lower the sector median.
Q: How often is this data updated?
A: Prices update during market hours. Fundamental metrics from fiscal reports update with each filing period. The screener refreshes the underlying dataset regularly.
Q: Why are some metrics missing for certain companies?
A: Metrics like P/E or ROE cannot be calculated when denominators are zero or negative. The system returns null rather than an inaccurate figure.
Q: Does the ranking show the best stocks?
A: The ROE ranking displays companies with the highest returns on equity, but other factors like valuation, growth prospects, and industry position matter for investment decisions.
Sources
- B3 — Sector classification criteria (https://www.b3.com.br/pt_br/produtos-e-servicos/negociacao/renda-variavel/acoes/consultas/criterio-de-classificacao/) — official classification context.
- Bora Investir — Comparing stock indicators (https://borainvestir.b3.com.br/tipos-de-investimentos/renda-variavel/acoes/6-indicadores-para-comparar-acoes-de-empresas-do-mesmo-setor/) — definitions and comparison limits for valuation and profitability metrics.
- Investor.gov — Fundamental analysis (https://www.investor.gov/introduction-investing/investing-basics/glossary/fundamental-analysis) — educational explanation of fundamental analysis.
- FundamentalRadar — Technology sector page (/en/sectors/tecnologia) — product behavior and displayed fields confirmed from the site code.