Rio Paranapanema Energia Valuation

Q: What is the Fair Price of GEPA3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GEPA3 (R$29.76) is trading below our estimate of [[fair value]] (R$80.37)

Is GEPA3 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 GEPA3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GEPA3 (R$29.76) is trading below our estimate of fair value (R$80.37)

Significantly Below Fair Value: GEPA3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GEPA3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GEPA3. This is calculated by dividing GEPA3's market cap by their current preferred multiple.
What is GEPA3's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	R$2.79b

GEPA3 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/Revenue	2.4x
Enterprise Value/EBITDA	4.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does GEPA3's PE Ratio compare to its peers?

The above table shows the PE ratio for GEPA3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	6x
CLSC4 Centrais Elétricas de Santa Catarina	4.8x	n/a	R$3.0b
COCE5 Companhia Energética do Ceará - COELCE	7x	n/a	R$2.2b
EQMA3B Equatorial Maranhão Distribuidora de Energia	4.9x	n/a	R$3.9b
CEBR5 Companhia Energética de Brasília - CEB	7.1x	n/a	R$1.3b
GEPA3 Rio Paranapanema Energia	9.8x	n/a	R$2.8b

Price-To-Earnings vs Peers: GEPA3 is expensive based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (6x).

Price to Earnings Ratio vs Industry

How does GEPA3's PE Ratio compare vs other companies in the BR Electric Utilities Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	5.7%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	5.7%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: GEPA3 is expensive based on its Price-To-Earnings Ratio (9.8x) compared to the BR Electric Utilities industry average (8x).

Price to Earnings Ratio vs Fair Ratio

What is GEPA3'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.

GEPA3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GEPA3'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.