Cresud SA (CRES.BA) fair value

ACCE thesis

Cresud is an Argentine agribusiness and real estate conglomerate, running farmland, crop and cattle operations alongside urban property development and hotels, with its Dolphin and IRSA-linked holdings giving it exposure well beyond the farm gate. The structural case rests on that land base and a diversified mix that cushions any single commodity cycle, which is reflected in a 40.6% gross margin and a 16.9% operating margin. Revenue grew 8.3% and return on equity sits at 12.2%, while the trailing P/E of 6.8 looks cheap against the market. The forward P/E of 1029.1 is a red flag, not a bargain: it implies earnings collapse or a sharp swing in the forecast base, and that needs explaining before anyone leans on the trailing multiple. Worth a deeper look to reconcile the trailing and forward earnings picture and to assess how much of the reported profitability survives Argentina's currency and inflation distortions.