Equatorial Energia S.A.

BOVESPA:EQTL3 Stock Report

Market Cap: R$37.7b

Equatorial Energia Valuation

Is EQTL3 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-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 EQTL3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EQTL3 (R$32.84) is trading above our estimate of fair value (R$12.7)

Significantly Below Fair Value: EQTL3 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for EQTL3?

Other financial metrics that can be useful for relative valuation.

EQTL3 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/Revenue1.9x
Enterprise Value/EBITDA7.6x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does EQTL3's PE Ratio compare to its peers?

The above table shows the PE ratio for EQTL3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.1x
CPFE3 CPFL Energia
7.3x-4.1%R$40.5b
CMIG4 Companhia Energética de Minas Gerais - CEMIG
4.8x-16.0%R$29.0b
ENGI3 Energisa
18.6x10.2%R$24.8b
NEOE3 Neoenergia
5.6x-4.1%R$24.8b
EQTL3 Equatorial Energia
18.1x25.7%R$37.7b

Price-To-Earnings vs Peers: EQTL3 is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (9.1x).


Price to Earnings Ratio vs Industry

How does EQTL3's PE Ratio compare vs other companies in the BR Electric Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: EQTL3 is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the BR Electric Utilities industry average (8.7x).


Price to Earnings Ratio vs Fair Ratio

What is EQTL3'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.

EQTL3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.1x
Fair PE Ratio19.9x

Price-To-Earnings vs Fair Ratio: EQTL3 is good value based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (19.9x).


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 EQTL3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$32.84
R$39.75
+21.0%
6.5%R$43.67R$34.00n/a14
Mar ’25R$33.85
R$40.03
+18.3%
7.0%R$44.00R$34.00n/a14
Feb ’25R$35.83
R$39.56
+10.4%
6.8%R$44.00R$34.00n/a14
Jan ’25R$35.72
R$38.48
+7.7%
9.0%R$44.00R$29.96n/a14
Dec ’24R$34.17
R$37.84
+10.7%
8.4%R$44.00R$29.96n/a14
Nov ’24R$32.26
R$37.14
+15.1%
9.2%R$44.00R$29.96n/a13
Oct ’24R$32.06
R$36.19
+12.9%
10.1%R$44.00R$29.96n/a13
Sep ’24R$31.90
R$35.64
+11.7%
10.2%R$44.00R$29.96n/a13
Aug ’24R$33.05
R$35.49
+7.4%
10.2%R$44.00R$29.96n/a13
Jul ’24R$32.15
R$34.42
+7.1%
7.2%R$39.00R$29.96n/a13
Jun ’24R$27.95
R$34.26
+22.6%
7.1%R$39.00R$29.96n/a13
May ’24R$27.34
R$33.91
+24.0%
7.9%R$39.00R$29.20n/a14
Apr ’24R$26.96
R$33.58
+24.5%
7.9%R$39.00R$29.20n/a15
Mar ’24R$24.89
R$33.58
+34.9%
7.9%R$39.00R$29.20R$33.8515
Feb ’24R$28.00
R$33.07
+18.1%
9.0%R$39.00R$28.10R$35.8315
Jan ’24R$27.02
R$32.29
+19.5%
9.9%R$39.00R$26.00R$35.7215
Dec ’23R$27.37
R$31.42
+14.8%
9.7%R$39.00R$26.00R$34.1715
Nov ’23R$30.00
R$30.60
+2.0%
8.1%R$34.00R$26.00R$32.2615
Oct ’23R$26.90
R$30.17
+12.2%
8.1%R$34.00R$26.00R$32.0615
Sep ’23R$24.45
R$29.50
+20.7%
6.6%R$33.50R$26.00R$31.9015
Aug ’23R$24.77
R$29.43
+18.8%
6.9%R$33.50R$26.00R$33.0513
Jul ’23R$23.10
R$29.43
+27.4%
6.9%R$33.50R$26.00R$32.1513
Jun ’23R$23.59
R$29.43
+24.7%
7.2%R$33.50R$26.00R$27.9513
May ’23R$25.64
R$29.31
+14.3%
7.7%R$33.50R$26.00R$27.3413
Apr ’23R$27.51
R$29.23
+6.3%
7.7%R$33.50R$26.00R$26.9613
Mar ’23R$25.57
R$28.24
+10.4%
5.6%R$31.00R$26.00R$24.8911

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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