Companhia Catarinense de Águas e Saneamento - CASAN Valuation

Q: What is the Fair Price of CASN3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CASN3 (R$10.45) is trading above our estimate of [[fair value]] (R$0.25)

Is CASN3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Share Price vs Fair Value

What is the Fair Price of CASN3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CASN3 (R$10.45) is trading above our estimate of fair value (R$0.25)

Significantly Below Fair Value: CASN3 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CASN3?

Key metric: As CASN3 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CASN3. This is calculated by dividing CASN3's market cap by their current revenue.
What is CASN3's PS Ratio?
PS Ratio	6.7x
Sales	R$1.48b
Market Cap	R$9.92b

CASN3 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	7.9x
Enterprise Value/EBITDA	32.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does CASN3's PS Ratio compare to its peers?

The above table shows the PS ratio for CASN3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.4x
CSMG3 Companhia de Saneamento de Minas Gerais	1.2x	4.1%	R$9.6b
SAPR4 Companhia de Saneamento do Paraná - SANEPAR	1.2x	4.8%	R$7.9b
SBSP3 Companhia de Saneamento Básico do Estado de São Paulo - SABESP	1.9x	0.6%	R$67.0b
EQPA3 Equatorial Pará Distribuidora de Energia	1.2x	n/a	R$12.4b
CASN3 Companhia Catarinense de Águas e Saneamento - CASAN	6.7x	n/a	R$9.9b

Price-To-Sales vs Peers: CASN3 is expensive based on its Price-To-Sales Ratio (6.7x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

How does CASN3's PS Ratio compare vs other companies in the Global Water Utilities Industry?

13 Companies	Price / Sales	Estimated Growth	Market Cap

13 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: CASN3 is expensive based on its Price-To-Sales Ratio (6.7x) compared to the Global Water Utilities industry average (2.1x).

Price to Sales Ratio vs Fair Ratio

What is CASN3's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CASN3 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	6.7x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate CASN3's Price-To-Sales 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.

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