Neoenergia Valuation
Is NEOE3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
6/6Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for NEOE3?
Other financial metrics that can be useful for relative valuation.
| What is NEOE3's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | R$19.13b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.3x |
| Enterprise Value/EBITDA | 4.6x |
| PEG Ratio | 0.9x |
Price to Earnings Ratio vs Peers
How does NEOE3's PE Ratio compare to its peers?
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 12.8x | ||
ENGI3 Energisa | 12.7x | 14.7% | R$20.0b |
TRPL4 CTEEP - Companhia de Transmissão de Energia Elétrica Paulista | 6.5x | 3.0% | R$17.9b |
CPLE6 Companhia Paranaense de Energia - COPEL | 18.9x | 14.8% | R$19.9b |
ENMT4 Energisa Mato Grosso - Distribuidora de Energia S/A | 13.2x | n/a | R$15.5b |
NEOE3 Neoenergia | 4.1x | 4.7% | R$19.1b |
Price-To-Earnings vs Peers: NEOE3 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (12.8x).
Price to Earnings Ratio vs Industry
How does NEOE3's PE Ratio compare vs other companies in the BR Electric Utilities Industry?
Price-To-Earnings vs Industry: NEOE3 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the BR Electric Utilities industry average (8.4x)
Price to Earnings Ratio vs Fair Ratio
What is NEOE3'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 4.1x |
| Fair PE Ratio | 10.5x |
Price-To-Earnings vs Fair Ratio: NEOE3 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.5x).
Share Price vs Fair Value
What is the Fair Price of NEOE3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: NEOE3 (R$16.12) is trading below our estimate of fair value (R$51.35)
Significantly Below Fair Value: NEOE3 is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | R$16.12 | R$23.98 +48.8% | 12.4% | R$27.90 | R$19.90 | n/a | 11 |
| May ’24 | R$15.45 | R$23.90 +54.7% | 11.6% | R$27.90 | R$19.90 | n/a | 12 |
| Apr ’24 | R$15.00 | R$24.57 +63.8% | 12.0% | R$29.00 | R$19.90 | n/a | 12 |
| Mar ’24 | R$14.08 | R$24.57 +74.5% | 12.0% | R$29.00 | R$19.90 | n/a | 12 |
| Feb ’24 | R$15.18 | R$24.05 +58.4% | 14.0% | R$29.00 | R$19.50 | n/a | 13 |
| Jan ’24 | R$15.45 | R$24.21 +56.7% | 12.6% | R$29.00 | R$19.50 | n/a | 13 |
| Dec ’23 | R$15.66 | R$24.44 +56.1% | 11.9% | R$29.00 | R$19.50 | n/a | 13 |
| Nov ’23 | R$16.51 | R$24.59 +49.0% | 12.8% | R$30.00 | R$19.50 | n/a | 13 |
| Oct ’23 | R$15.30 | R$24.71 +61.5% | 12.4% | R$30.00 | R$19.95 | n/a | 13 |
| Sep ’23 | R$16.42 | R$24.99 +52.2% | 10.6% | R$30.00 | R$19.95 | n/a | 14 |
| Aug ’23 | R$15.05 | R$25.12 +66.9% | 10.6% | R$30.00 | R$19.95 | n/a | 14 |
| Jul ’23 | R$14.51 | R$26.23 +80.8% | 8.2% | R$30.00 | R$23.30 | n/a | 12 |
| Jun ’23 | R$18.05 | R$26.37 +46.1% | 7.8% | R$30.00 | R$23.30 | R$16.12 | 12 |
| May ’23 | R$18.78 | R$26.29 +40.0% | 7.3% | R$29.00 | R$23.30 | R$15.45 | 12 |
| Apr ’23 | R$17.30 | R$25.55 +47.7% | 6.0% | R$29.00 | R$23.30 | R$15.00 | 10 |
| Mar ’23 | R$16.09 | R$25.55 +58.8% | 6.0% | R$29.00 | R$23.30 | R$14.08 | 10 |
| Feb ’23 | R$16.21 | R$25.91 +59.9% | 7.0% | R$29.00 | R$23.30 | R$15.18 | 9 |
| Jan ’23 | R$16.20 | R$26.08 +61.0% | 6.4% | R$29.00 | R$23.70 | R$15.45 | 9 |
| Dec ’22 | R$17.39 | R$25.49 +46.6% | 8.3% | R$29.00 | R$21.00 | R$15.66 | 11 |
| Nov ’22 | R$15.68 | R$25.40 +62.0% | 7.8% | R$28.40 | R$21.00 | R$16.51 | 11 |
| Oct ’22 | R$15.30 | R$25.40 +66.0% | 7.8% | R$28.40 | R$21.00 | R$15.30 | 11 |
| Sep ’22 | R$16.91 | R$25.63 +51.6% | 8.5% | R$28.50 | R$21.00 | R$16.42 | 11 |
| Aug ’22 | R$17.38 | R$25.63 +47.5% | 8.5% | R$28.50 | R$21.00 | R$15.05 | 11 |
| Jul ’22 | R$17.37 | R$25.45 +46.5% | 9.2% | R$28.50 | R$21.00 | R$14.51 | 12 |
| Jun ’22 | R$18.54 | R$25.18 +35.8% | 8.9% | R$28.40 | R$21.00 | R$18.05 | 11 |
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.