Companhia de Saneamento do Paraná - SANEPAR

BOVESPA:SAPR3 Stock Report

Market Cap: R$7.7b

Companhia de Saneamento do Paraná - SANEPAR Valuation

Is SAPR3 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 SAPR3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SAPR3 (R$5.07) is trading below our estimate of fair value (R$6.81)

Significantly Below Fair Value: SAPR3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SAPR3?

Key metric: As SAPR3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SAPR3. This is calculated by dividing SAPR3's market cap by their current earnings.
What is SAPR3's PE Ratio?
PE Ratio5.3x
EarningsR$1.50b
Market CapR$7.74b

Price to Earnings Ratio vs Peers

How does SAPR3's PE Ratio compare to its peers?

The above table shows the PE ratio for SAPR3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average46.6x
CSMG3 Companhia de Saneamento de Minas Gerais
6.8x1.1%R$9.4b
CASN3 Companhia Catarinense de Águas e Saneamento - CASAN
163.8xn/aR$9.9b
SBSP3 Companhia de Saneamento Básico do Estado de São Paulo - SABESP
7.2x-2.9%R$66.2b
EKTR4 Elektro Redes
8.8xn/aR$8.3b
SAPR3 Companhia de Saneamento do Paraná - SANEPAR
5.3x-2.2%R$7.7b

Price-To-Earnings vs Peers: SAPR3 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (7.6x).

Price to Earnings Ratio vs Industry

How does SAPR3's PE Ratio compare vs other companies in the Global Water Utilities Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SAPR3 5.3xIndustry Avg. 18.0xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SAPR3 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the Global Water Utilities industry average (18.5x).

Price to Earnings Ratio vs Fair Ratio

What is SAPR3'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.

SAPR3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.3x
Fair PE Ratio10x

Price-To-Earnings vs Fair Ratio: SAPR3 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the estimated Fair Price-To-Earnings Ratio (10x).

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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