Centrais Elétricas Brasileiras S.A. - Eletrobrás

BOVESPA:ELET6 Stock Report

Market Cap: R$95.9b

Centrais Elétricas Brasileiras - Eletrobrás Valuation

Is ELET6 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 ELET6 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ELET6 (R$46.6) is trading below our estimate of fair value (R$72.91)

Significantly Below Fair Value: ELET6 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for ELET6?

Other financial metrics that can be useful for relative valuation.

ELET6 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/Revenue3.9x
Enterprise Value/EBITDA9.5x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does ELET6's PE Ratio compare to its peers?

The above table shows the PE ratio for ELET6 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.9x
CPFE3 CPFL Energia
7.2x-4.1%R$39.9b
CPLE6 Companhia Paranaense de Energia - COPEL
14x5.5%R$28.6b
CMIG4 Companhia Energética de Minas Gerais - CEMIG
4.7x-15.7%R$28.5b
NEOE3 Neoenergia
5.6x-4.1%R$25.0b
ELET6 Centrais Elétricas Brasileiras - Eletrobrás
21.5x23.9%R$95.9b

Price-To-Earnings vs Peers: ELET6 is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the peer average (8x).


Price to Earnings Ratio vs Industry

How does ELET6's PE Ratio compare vs other companies in the BR Electric Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ELET6 is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the BR Electric Utilities industry average (8.8x).


Price to Earnings Ratio vs Fair Ratio

What is ELET6'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.

ELET6 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.5x
Fair PE Ratio19.7x

Price-To-Earnings vs Fair Ratio: ELET6 is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).


Analyst Price Targets

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

The above table shows the analyst ELET6 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$46.60
R$60.23
+29.2%
11.5%R$79.00R$55.00n/a9
Mar ’25R$48.28
R$60.23
+24.7%
11.5%R$79.00R$55.00n/a9
Feb ’25R$46.48
R$59.84
+28.8%
12.0%R$79.00R$53.10n/a9
Jan ’25R$46.98
R$59.29
+26.2%
12.2%R$79.00R$53.10n/a9
Dec ’24R$44.91
R$59.51
+32.5%
11.9%R$79.00R$53.10n/a9
Nov ’24R$39.81
R$59.73
+50.0%
11.8%R$79.00R$53.10n/a9
Oct ’24R$40.35
R$59.73
+48.0%
11.8%R$79.00R$53.10n/a9
Sep ’24R$38.77
R$59.18
+52.6%
12.3%R$79.00R$53.10n/a9
Aug ’24R$43.08
R$58.98
+36.9%
12.3%R$79.00R$54.00n/a9
Jul ’24R$44.52
R$58.64
+31.7%
8.4%R$71.00R$54.00n/a9
Jun ’24R$39.98
R$58.75
+47.0%
13.0%R$71.00R$45.00n/a9
May ’24R$36.41
R$58.53
+60.7%
12.5%R$71.00R$45.00n/a10
Apr ’24R$36.28
R$61.13
+68.5%
9.6%R$71.00R$54.00n/a10
Mar ’24R$35.22
R$61.63
+75.0%
10.7%R$70.00R$47.70R$48.289
Feb ’24R$42.30
R$62.19
+47.0%
11.0%R$70.00R$47.70R$46.489
Jan ’24R$43.23
R$65.01
+50.4%
10.8%R$72.86R$47.70R$46.989
Dec ’23R$48.08
R$66.17
+37.6%
10.9%R$72.86R$47.70R$44.919
Nov ’23R$53.67
R$66.17
+23.3%
10.9%R$72.86R$47.70R$39.819
Oct ’23R$45.15
R$66.26
+46.7%
10.3%R$72.86R$47.70R$40.3510
Sep ’23R$48.44
R$65.73
+35.7%
10.9%R$72.86R$47.70R$38.779
Aug ’23R$47.86
R$67.81
+41.7%
5.7%R$72.86R$62.00R$43.086
Jul ’23R$46.50
R$54.61
+17.4%
19.2%R$70.00R$42.65R$44.526
Jun ’23R$42.01
R$52.13
+24.1%
18.7%R$70.00R$42.65R$39.985
May ’23R$40.15
R$50.24
+25.1%
18.9%R$70.00R$36.00R$36.418
Apr ’23R$38.88
R$50.49
+29.9%
18.9%R$70.00R$36.00R$36.288
Mar ’23R$34.41
R$50.49
+46.7%
18.9%R$70.00R$36.00R$35.228

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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