Equatorial Pará Distribuidora de Energia S.A.

BOVESPA:EQPA7 Stock Report

Market Cap: R$13.4b

Equatorial Pará Distribuidora de Energia Valuation

Is EQPA7 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 EQPA7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EQPA7 (R$8.24) is trading below our estimate of fair value (R$19.13)

Significantly Below Fair Value: EQPA7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EQPA7?

Key metric: As EQPA7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EQPA7. This is calculated by dividing EQPA7's market cap by their current earnings.
What is EQPA7's PE Ratio?
PE Ratio6.1x
EarningsR$2.20b
Market CapR$13.37b

Price to Earnings Ratio vs Peers

How does EQPA7's PE Ratio compare to its peers?

The above table shows the PE ratio for EQPA7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.9x
REDE3 Rede Energia Participações
9xn/aR$14.3b
ISAE4 ISA Energía Brasil
4.9x-19.6%R$17.7b
TAEE11 Transmissora Aliança de Energia Elétrica
7.1x-9.2%R$11.8b
ENMT4 Energisa Mato Grosso - Distribuidora de Energia S/A
14.7xn/aR$18.2b
EQPA7 Equatorial Pará Distribuidora de Energia
6.1xn/aR$13.4b

Price-To-Earnings vs Peers: EQPA7 is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (8.3x).

Price to Earnings Ratio vs Industry

How does EQPA7's PE Ratio compare vs other companies in the BR Electric Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
EQPA7 6.1xIndustry Avg. 8.7xNo. of Companies5PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EQPA7 is good value based on its Price-To-Earnings Ratio (6.1x) compared to the BR Electric Utilities industry average (8x).

Price to Earnings Ratio vs Fair Ratio

What is EQPA7'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.

EQPA7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EQPA7'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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