Eversource Energy Valuation

Is E1SE34 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-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 E1SE34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: E1SE34 (R$180.36) is trading below our estimate of fair value (R$235.8)

Significantly Below Fair Value: E1SE34 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for E1SE34?

Key metric: As E1SE34 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for E1SE34. This is calculated by dividing E1SE34's market cap by their current revenue.
What is E1SE34's PS Ratio?
PS Ratio	2x
Sales	US$11.62b
Market Cap	US$23.44b

E1SE34 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	4.5x
Enterprise Value/EBITDA	12.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does E1SE34's PS Ratio compare to its peers?

The above table shows the PS ratio for E1SE34 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	1.3x
ELET6 Centrais Elétricas Brasileiras - Eletrobrás	2.4x	2.1%	R$80.5b
CMIG4 Companhia Energética de Minas Gerais - CEMIG	0.9x	1.7%	R$36.2b
CPFE3 CPFL Energia	0.9x	2.4%	R$38.0b
EQTL3 Equatorial Energia	0.9x	0.02%	R$38.3b
E1SE34 Eversource Energy	2x	5.7%	R$23.4b

Price-To-Sales vs Peers: E1SE34 is expensive based on its Price-To-Sales Ratio (2x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does E1SE34's PS Ratio compare vs other companies in the BR Electric Utilities Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap
COCE5 Companhia Energética do Ceará - COELCE	0.2x	n/a	US$367.51m
LIGT3 Light	0.1x	-3.0%	US$278.84m
CEED3 Companhia Estadual de Distribuição de Energia Elétrica	0.2x	n/a	US$164.47m

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: E1SE34 is expensive based on its Price-To-Sales Ratio (2x) compared to the BR Electric Utilities industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is E1SE34'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.

E1SE34 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate E1SE34'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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