ISA Energía Brasil S.A

BOVESPA:ISAE3 Stock Report

Market Cap: R$17.6b

ISA Energía Brasil Valuation

Is ISAE3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 ISAE3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ISAE3 (R$30.75) is trading below our estimate of fair value (R$38.57)

Significantly Below Fair Value: ISAE3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ISAE3?

Key metric: As ISAE3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ISAE3. This is calculated by dividing ISAE3's market cap by their current earnings.
What is ISAE3's PE Ratio?
PE Ratio4.8x
EarningsR$3.31b
Market CapR$17.63b

Price to Earnings Ratio vs Peers

How does ISAE3's PE Ratio compare to its peers?

The above table shows the PE ratio for ISAE3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.4x
ENMT4 Energisa Mato Grosso - Distribuidora de Energia S/A
14.7xn/aR$18.4b
ENGI3 Energisa
11.6x1.1%R$21.2b
REDE3 Rede Energia Participações
9.1xn/aR$14.2b
NEOE3 Neoenergia
6.2x2.6%R$23.2b
ISAE3 ISA Energía Brasil
4.8x-20.4%R$17.6b

Price-To-Earnings vs Peers: ISAE3 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

How does ISAE3'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
ISAE3 4.8xIndustry Avg. 8.8xNo. of Companies5PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ISAE3 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the BR Electric Utilities industry average (8.8x).

Price to Earnings Ratio vs Fair Ratio

What is ISAE3'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.

ISAE3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ratio8.1x

Price-To-Earnings vs Fair Ratio: ISAE3 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the estimated Fair Price-To-Earnings Ratio (8.1x).

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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