Rio Paranapanema Energia S.A.

BOVESPA:GEPA3 Stock Report

Market Cap: R$3.0b

Rio Paranapanema Energia Valuation

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$30.61) is trading below our estimate of fair value (R$80.15)

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?

Key metric: As GEPA3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GEPA3. This is calculated by dividing GEPA3's market cap by their current earnings.
What is GEPA3's PE Ratio?
PE Ratio10.1x
EarningsR$287.28m
Market CapR$2.96b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.1x
CLSC4 Centrais Elétricas de Santa Catarina
4.7xn/aR$3.1b
COCE5 Companhia Energética do Ceará - COELCE
6.9xn/aR$2.1b
EQMA3B Equatorial Maranhão Distribuidora de Energia
5.2xn/aR$3.9b
CEBR5 Companhia Energética de Brasília - CEB
7.4xn/aR$1.4b
GEPA3 Rio Paranapanema Energia
10.1xn/aR$3.0b

Price-To-Earnings vs Peers: GEPA3 is expensive based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (6.1x).

Price to Earnings Ratio vs Industry

How does GEPA3'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
GEPA3 10.1xIndustry Avg. 8.7xNo. of Companies6PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GEPA3 is expensive based on its Price-To-Earnings Ratio (10.1x) compared to the BR Electric Utilities industry average (8.7x).

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 Ratio10.1x
Fair PE Ration/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.

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