Centrais Elétricas Brasileiras - Eletrobrás Valuation

Q: What is the Fair Price of EBRD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EBRD ($28.5) is trading below our estimate of [[fair value]] ($60.04)

Is EBRD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EBRD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EBRD ($28.5) is trading below our estimate of fair value ($60.04)

Significantly Below Fair Value: EBRD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EBRD?

Key metric: As EBRD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EBRD. This is calculated by dividing EBRD's market cap by their current earnings.
What is EBRD's PE Ratio?
PE Ratio	21.3x
Earnings	R$4.44b
Market Cap	R$86.38b

EBRD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.9x
Enterprise Value/EBITDA	10.9x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does EBRD's PE Ratio compare to its peers?

The above table shows the PE ratio for EBRD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	15.6x
PAMP Pampa Energía	7.4x	-11.0%	AR$4.6t
EDN Empresa Distribuidora y Comercializadora Norte Sociedad Anónima	13.9x	97.1%	AR$1.7t
LNT Alliant Energy	24x	10.4%	US$15.6b
EVRG Evergy	17.2x	6.6%	US$14.7b
EBRD Centrais Elétricas Brasileiras - Eletrobrás	21.3x	18.0%	US$86.4b

Price-To-Earnings vs Peers: EBRD is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does EBRD's PE Ratio compare vs other companies in the South American Electric Utilities Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: EBRD is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the South American Electric Utilities industry average (9x).

Price to Earnings Ratio vs Fair Ratio

What is EBRD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EBRD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EBRD's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.