AlphaMadera's AlphaVal page computes Companhia de Saneamento Básico do Estado de São Paulo - SABESP's fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag SBS as undervalued, fairly valued, or overvalued.

How does AlphaMadera value SBS?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from SBS's most recent reported fundamentals.

SBS - Companhia de Saneamento Básico do Estado de São Paulo - SABESP

Q: What is Companhia de Saneamento Básico do Estado de São Paulo - SABESP's fair value?

Fair value for SBS is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $23.79 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Strong

Trading 64.5% below fair value

Current Price $5.66

Bear Case $9.19 62.3% upside ($9.19 - $5.66) / $5.66 = 62.3% 10% stage 1 growth, 11% discount

Fair Value $15.97 182.1% upside ($15.97 - $5.66) / $5.66 = 182.1% 16% stage 1 growth, 11% discount

Bull Case $23.70 318.8% upside ($23.70 - $5.66) / $5.66 = 318.8% 21% stage 1 growth, 11% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

16.0%

Discount Rate (WACC)

11.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (16% base case)

Terminal Value % of EV 44%

Implied Market Multiple 15.7x

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $23.79 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $15.97 per share.

Warnings

ℹ Wall Street's average price target is $23.79 (from 7 analysts). Our estimate is 41% below the consensus -- consider that gap carefully.

ℹ Financial statements were converted from BRL into USD using USDBRL at 0.1993 USD per BRL.

Key Risks

P/E alone misleads — earnings depressed by growth investment
Cyclical or commodity businesses may be misclassified as platforms
Terminal value dominance suggests sensitivity to long-run assumptions