Empresa Metropolitana de Águas e Energia S.A.

BOVESPA:EMAE4 Stock Report

Market Cap: R$1.9b

Empresa Metropolitana de Águas e Energia Valuation

Is EMAE4 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 EMAE4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EMAE4 (R$39.5) is trading below our estimate of fair value (R$45.22)

Significantly Below Fair Value: EMAE4 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EMAE4?

Key metric: As EMAE4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EMAE4. This is calculated by dividing EMAE4's market cap by their current earnings.
What is EMAE4's PE Ratio?
PE Ratio10.1x
EarningsR$144.37m
Market CapR$1.87b

Price to Earnings Ratio vs Peers

How does EMAE4's PE Ratio compare to its peers?

The above table shows the PE ratio for EMAE4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.9x
SRNA3 Serena Energia
19.6x3.9%R$4.4b
AURE3 Auren Energia
13.5x-4.7%R$9.9b
RNEW11 Renova Energia
3.3xn/aR$254.5m
EGIE3 Engie Brasil Energia
7.5x-14.0%R$32.0b
EMAE4 Empresa Metropolitana de Águas e Energia
10.1xn/aR$1.9b

Price-To-Earnings vs Peers: EMAE4 is good value based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

How does EMAE4's PE Ratio compare vs other companies in the Global Renewable Energy Industry?

17 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EMAE4 10.1xIndustry Avg. 14.4xNo. of Companies43PE01224364860+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EMAE4 is good value based on its Price-To-Earnings Ratio (10.1x) compared to the Global Renewable Energy industry average (14.5x).

Price to Earnings Ratio vs Fair Ratio

What is EMAE4'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.

EMAE4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EMAE4'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.

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