Companhia de Saneamento Basico do Estado de Sao Paulo SABESP
BOVESPA:SBSP3

Watchlist Manager
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Logo
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP
BOVESPA:SBSP3
Watchlist
Price: 30.44 BRL -2.22% Market Closed
Market Cap: R$107.3B

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on May 10, 2026.

Estimated DCF Value of one SBSP3 stock is 9.02 BRL. Compared to the current market price of 30.44 BRL, the stock is Overvalued by 70%.

SBSP3 DCF Value
9.02 BRL
Overvaluation 70%
DCF Value
Price R$30.44
Bear Case
Base Case
Bull Case
9.02
DCF Value
Bear Case
Base Case
Bull Case
Hide
DCF Value: 9.02 BRL

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 14.4B BRL. The present value of the terminal value is 17.4B BRL. The total present value equals 31.8B BRL.
Forecast Period
Years
Discount Rate
%
Show All DCF Settings
Terminal Growth
%
Hide DCF Settings
Save

DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 31.8B BRL
Equity Value 31.8B BRL
/ Shares Outstanding 3.5B
SBSP3 DCF Value 9.02 BRL
Overvalued by 70%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value
31.8B BRL
/
Number of Shares
3.5B
=
DCF Value
9.02 BRL

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
26.4B 39.5B
Net Income
8B 12.5B
FCFE
3B 6.4B

What is the DCF value of one SBSP3 stock?

Estimated DCF Value of one SBSP3 stock is 9.02 BRL. Compared to the current market price of 30.44 BRL, the stock is Overvalued by 70%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Companhia de Saneamento Basico do Estado de Sao Paulo SABESP's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 31.8B BRL.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 9.02 BRL per share.

Back to Top
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett