I come up with assets minus liabilities of US $2,637,000,000 divided by 216ML shares for a book value of $12.21/share for the ADR. Seems dirt cheap to me? They are in a tight bind this Spring because some Tenda units are being sold and some receivables need to be collected, but their assets (inventory + receivables) + cash = R$ 9.345 BL. Their total debt (including construction obligations) is R$4.174 BL. Gross margins, net margins, and revenues are increasing, and that on a lower sales base as they consolidate and sell off non strategic assets. I say that if they can get through this current rough spot, they will have 3 divisions to meet every economic class in Brazil. They are very similar in structure to Pulte Homes in the states.
BV as of 9/30/12 was R$6.10/share and TBV was R$5.61. Assets less Liabilities was R$2.772b (or US$1.41b) which is US$6.54/share for the ADR. However, I believe the better metric is TEV/EBITDA and TEV/EBIT with an eye on FCF growth as you mention. On these bases, they can double from here; assuming current trends continue and I've seen no evidence suggesting they won't.
So all things being equal - unless there is some little cockroach in the woodwork I don't know about (that's an oxymoron) - the losses of February have forced me into looking at the company numbers and I like what I see if everything is on the up and up. The metrics are improving, and they have already said in the most recent conference call that they have the money to pay the 9/2013 debt (I have confirmed that); that the 2.2 covenants include cash on hand, so they are okay there (I have confirmed that by the conference call too) and that the business model is starting to generate cash improvement (2 sequential quarters) after two years of cash burn. I am now comfortable with my investment.