AlphaMadera's AlphaVal page classifies Companhia Energética de Minas Gerais as a Stable Earnings Power business and values it using P/Adj-EPS × Normalized Multiple, then compares the result to the current market price to flag CIG as undervalued, fairly valued, or overvalued.

What is Companhia Energética de Minas Gerais's fair value?

Fair value for CIG comes from a P/Adj-EPS × Normalized Multiple model -- the approach AlphaVal selected for this company's Stable Earnings Power classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value CIG?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. CIG was classified as Stable Earnings Power and is valued using P/Adj-EPS × Normalized Multiple, built from CIG's most recent reported fundamentals.

CIG - Companhia Energética de Minas Gerais

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $2.10 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 85% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Strong

Trading 64.0% below fair value

Current Price $2.21

Bear Case $5.37 143.0% upside ($5.37 - $2.21) / $2.21 = 143.0% $0.33 × 16x P/E

Fair Value $6.14 177.8% upside ($6.14 - $2.21) / $2.21 = 177.8% $0.33 × 19x P/E

Bull Case $6.91 212.5% upside ($6.91 - $2.21) / $2.21 = 212.5% $0.33 × 21x P/E

Adjust Assumptions

P/E Multiple

18.5x

Adjusted EPS

0.33$

Key Value Driver

Normalized P/E multiple (19x base case)

Terminal Value % of EV

Implied Market Multiple 6.7x

Market is pricing in (growth)

Plain-Language Summary

Applying a 19x P/E to adjusted EPS of $0.33, the base-case value is $6.14 per share. DDM cross-check: $126.55.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (5 analysts) $2.10

Analyst Range $2.10 – $2.10

Divergence from AlphaVal 192%

Warnings

ℹ Dividend-based valuation: $126.55 (above our primary estimate by 1962%). Large gaps may signal the dividend doesn't reflect full earning power.

ℹ Wall Street's average price target is $2.10 (from 5 analysts). Our estimate is 192% above the consensus -- consider that gap carefully.

ℹ Financial statements were converted from BRL into USD using USDBRL at 0.1952 USD per BRL.

Key Risks

Growth DCF inappropriate — terminal value assumptions dominate
EV/EBITDA misleading for regulated businesses where capex is mandated
Regulatory risk is a fat tail not visible in normal multiples