Centrais Elétricas Brasileiras S.A. - Eletrobrás

DB:L3XC Stock Report

Market Cap: €13.2b

Centrais Elétricas Brasileiras - Eletrobrás Valuation

Is L3XC 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 L3XC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: L3XC (€6.3) is trading below our estimate of fair value (€18.65)

Significantly Below Fair Value: L3XC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for L3XC?

Key metric: As L3XC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for L3XC. This is calculated by dividing L3XC's market cap by their current earnings.
What is L3XC's PE Ratio?
PE Ratio8.8x
EarningsR$10.32b
Market CapR$80.55b

Price to Earnings Ratio vs Peers

How does L3XC's PE Ratio compare to its peers?

The above table shows the PE ratio for L3XC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
EBK EnBW Energie Baden-Württemberg
28.3xn/a€17.0b
LEC Lechwerke
25.8xn/a€2.5b
RWE RWE
8.2x-11.0%€23.0b
EOAN E.ON
17.6x8.9%€31.6b
L3XC Centrais Elétricas Brasileiras - Eletrobrás
8.8x5.2%€80.5b

Price-To-Earnings vs Peers: L3XC is good value based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

How does L3XC's PE Ratio compare vs other companies in the European Electric Utilities Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
L3XC 8.8xIndustry Avg. 12.7xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: L3XC is good value based on its Price-To-Earnings Ratio (8.8x) compared to the European Electric Utilities industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is L3XC'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.

L3XC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.8x
Fair PE Ratio21.9x

Price-To-Earnings vs Fair Ratio: L3XC is good value based on its Price-To-Earnings Ratio (8.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.9x).

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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