Centrais Elétricas Brasileiras - Eletrobrás

BOVESPA:ELET6 Stock Report

Mkt Cap: R$126.5b

We’ve recently updated our valuation analysis.

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

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue3.7x
Enterprise Value/EBITDA5.9x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

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

ELET6 PE Ratio vs 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.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.4x
CPFE3 CPFL Energia
7.7x-4.2%R$38.9b
CMIG4 Companhia Energética de Minas Gerais
8.2x13.3%R$27.7b
EQTL3 Equatorial Energia
9.1x15.3%R$29.6b
ENGI3 Energisa
8.4x-7.8%R$17.2b
ELET6 Centrais Elétricas Brasileiras - Eletrobrás
28.6x30.7%R$126.5b

Price-To-Earnings vs Peers: ELET6 is expensive based on its Price-To-Earnings Ratio (28.6x) compared to the peer average (8.4x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: ELET6 is expensive based on its Price-To-Earnings Ratio (28.6x) compared to the BR Electric Utilities industry average (7.6x)


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 Ratio28.6x
Fair PE Ratio12.5x

Price-To-Earnings vs Fair Ratio: ELET6 is expensive based on its Price-To-Earnings Ratio (28.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).


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$45.15) is trading below our estimate of fair value (R$356.79)

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


Analyst Price Targets

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

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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