Companhia Energetica de Minas Gerais CEMIG Pref (CIG) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Companhia Energetica de Minas Gerais CEMIG Pref stock $4.89, price $1.86, upside +162.9%, quality 51 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $0.5620 – $2.60 · fair‑value band $2.84 – $6.40 · the $1.86 price screens below the $4.89 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Companhia Energética de Minas Gerais - CEMIG, through its subsidiaries, engages in the generation, transmission, distribution, and sale of energy in Brazil.
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As of December 31, 2025, the company operated 32 hydro plants with a total capacity of 4,434 M, 2 wind farms with a total capacity of 71 MW, and 12 photovoltaic power stations with a total capacity of 169 MW; 365,577 miles of distribution lines; and 4,865 miles of transmission lines.
It is also involved in the acquisition, transportation, and distribution of gas and its sub products and derivatives; sale and trading of energy; construction, implementation, operation and maintenance of electricity transmission; marketing and intermediation of energy-related business; installation, operation, maintenance and rental of solar plants; and distributed generation, account services, cogeneration, energy efficiency, and supply and storage management activities.
The company was incorporated in 1952 and is headquartered in Belo Horizonte, Brazil.
Stock analysis
Companhia Energetica de Minas Gerais CEMIG Pref (CIG) currently trades at $1.86, while our model-based Fair Value estimate is $4.89, implying the stock looks roughly 62% undervalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $5.27 per share, and 24 of the 26 models we run sit above the $1.86 price.
Bear case: the Earnings-Based group reads lowest at $3.00, and 2 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $2.84 (bear) to $6.40 (bull), the price of $1.86 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 51/100 (solid quality), in the Utilities sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Companhia Energetica de Minas Gerais CEMIG Pref ADR reported revenue of R$42.8B in FY2025 versus R$33.6B in FY2021, a compound +6.2%/yr. Reported net income was R$4.9B in FY2025, compounding +6.9%/yr from FY2021.
Key figures
Market cap $6.5B Mid · P/E ratio 7.4 · P/S ratio 0.84 · EPS (TTM) $0.3100 · Net margin 11.5% · Return on equity 15.9% · Return on assets (EBIT) 11.4% (5-year average) · Operating margin 15.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 53 out of 100 (medium confidence).
What moves the price
The share trades about 28% below its 52-week high and 5% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Utilities peers we cover trades at −38% fair-value upside, at 163%, CIG screens cheaper than that median.
Fair Value models
Bear$2.84Fair Value $4.89Bull$6.40
Price $1.86 · Upside +162.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.2658 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.80/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+7.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.4%
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What shareholders gained per year (last 5 years), in BRL ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in BRL: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+6.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.5%
Dividend (yield on the price)0.0%
Per share before 2021divided by the spin-off factor 1.115
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 6.5% / 26.9%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.19% → 15%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
0.0%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−6.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in BRL, Brazil: IMF forecast 3.3% a year to 2030, 5.4% from 2016 to 2025) that is about −3.2% a year for the price and −9.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (89 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Cemig's network modernization delivers record-low outage times as a key operational strength, yet state ownership and volatile spot-price exposure remain core limitations.
Main risk: Rising rooftop solar and distributed generation in its concession area could reduce reliance on Cemig's distribution network and create operational challenges from excess daytime supply.
Bull case: By deploying advanced management systems for distributed resources and expanding into storage and smart-grid services Cemig could integrate the shift and generate new revenue streams from the evolving energy landscape.
Bear case: If distributed generation expands rapidly without effective controls Cemig might face lower volumes through its network, operational instability and pressure on regulated distribution margins over the coming years.
Cemig is pouring record capital into modernizing its distribution network and has just reported the lowest outage times in its history. State ownership and generation exposure to volatile spot prices still weigh on the outlook. Our models see it as undervalued, but will the operational gains from these investments overcome the ownership and market risks, or will they remain the dominant discount factor?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Utilities - Regulated Electric · 155 stocks
Beats the industry median on 12/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score51 · Above median
Fair Value upside+162.9% · Top 25%
Profitability
Return on equity (12 months)15.9% · Top 25%
Return on assets7.3% · Top 25%
Net margin (12 months)10.5% · Below median
Operating margin (12 months)15.6% · Below median
Growth and dividend
Revenue growth (quarter YoY)3.4% · Below median
Dividend yield (12 months)52.7% · Top 25%
Balance sheet
Debt / equity0.58× · Below median
Valuation Multiplesvs Utilities - Regulated Electric median · lower = cheaper
P/E (12 months)7.4× · Cheapest 25%
P/B1.26× · Cheaper than median
P/S (12 months)0.82× · Cheapest 25%
Price / free cash flow (fiscal year)10.9× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Companhia Energetica de Minas Gerais CEMIG Pref ADR Fair Value". https://www.fairvalue-calculator.com/stock/CIG
Frequently asked questions
Is Companhia Energetica de Minas Gerais CEMIG Pref (CIG) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $4.89 versus a price of $1.86, about +163% upside (undervalued).
What is the fair value of CIG?
Our model-based fair value for Companhia Energetica de Minas Gerais CEMIG Pref is $4.89 (as of Nov 8, 2026), built from audited fundamentals. The current price: $1.86.
What is the quality score of CIG?
Companhia Energetica de Minas Gerais CEMIG Pref has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
Our model-based price target is the fair value of $4.89 (as of Nov 8, 2026) from 26 valuation models. Cautious scenario $2.84, optimistic scenario $6.40. It is a calculation from audited fundamentals, not an analyst target.
What is the Companhia Energetica de Minas Gerais CEMIG Pref ADR stock forecast for 2026?
Our models put fair value at $4.89, about +163% upside versus a price of $1.86 (undervalued). Cautious scenario $2.84, optimistic scenario $6.40. The calculation is refreshed regularly with new filings.
What is the revenue of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
Companhia Energetica de Minas Gerais CEMIG Pref reported trailing-twelve-month revenue of about R$43.7B (latest available figure, as of Nov 8, 2026).
What growth is priced into Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
For today's price to be fair in a discounted-cash-flow model, Companhia Energetica de Minas Gerais CEMIG Pref would have to grow free cash flow by 0.0 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.1 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of CIG use?
Our models discount Companhia Energetica de Minas Gerais CEMIG Pref at 8.5 %: a base by market capitalisation (mid), damped by beta 0.06, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Companhia Energetica de Minas Gerais CEMIG Pref that is 0.0 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Companhia Energetica de Minas Gerais CEMIG Pref (CIG) delivered so far?
Over the past 5 years revenue at Companhia Energetica de Minas Gerais CEMIG Pref grew +11.1 % a year. The price currently implies free-cash-flow growth of 0.0 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Companhia Energetica de Minas Gerais CEMIG Pref (CIG) growing?
The median revenue growth in the sector is +4.8 % a year. That is the yardstick for the growth priced into Companhia Energetica de Minas Gerais CEMIG Pref (0.0 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
The free-cash-flow yield on the price is 11.27 %: that much free cash flow Companhia Energetica de Minas Gerais CEMIG Pref produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Companhia Energetica de Minas Gerais CEMIG Pref it is $4.89 per share (as of Nov 8, 2026), against a price of $1.86. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Companhia Energetica de Minas Gerais CEMIG Pref ADR stock overvalued or undervalued in 2026?
As of Nov 8, 2026, CIG trades below its calculated fair value: price $1.86, fair value $4.89, a gap of about +163% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CIG?
No. The price is what the market pays today ($1.86); the fair value is what the company's own numbers justify ($4.89). For Companhia Energetica de Minas Gerais CEMIG Pref the two are $3.03 per share apart. That gap is exactly why we show both numbers side by side.
How much is Companhia Energetica de Minas Gerais CEMIG Pref ADR worth?
The market values Companhia Energetica de Minas Gerais CEMIG Pref at about $6.5B (market capitalisation, as of Nov 8, 2026). Per share that is $1.86; our models calculate a fair value of $4.89 per share.
What do the bullish and bearish scenarios say about CIG?
Our models span a range for Companhia Energetica de Minas Gerais CEMIG Pref: cautious scenario $2.84, base $4.89, optimistic $6.40 per share (as of Nov 8, 2026, price $1.86). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CIG?
Companhia Energetica de Minas Gerais CEMIG Pref trades at a price-to-earnings ratio of 7.4 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $4.89 is built from several models across several years. Other multiples: PEG 0.3, P/B 1.3, P/S 0.8, EV/EBITDA 6.4.
What is the PEG ratio of CIG?
The PEG ratio of Companhia Energetica de Minas Gerais CEMIG Pref is 0.33 (P/E divided by earnings growth, as of Nov 8, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
Balance-sheet figures for Companhia Energetica de Minas Gerais CEMIG Pref (as of Nov 8, 2026): return on equity 15.9%, debt of 0.58 per unit of equity. They feed the Quality Score of 51/100, which measures business quality independently of the share price.
How far is CIG from its 52-week high?
Companhia Energetica de Minas Gerais CEMIG Pref trades at $1.86, about 28% below its 52-week high of $2.60 and 5% above the low of $1.78 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $4.89 is for.
Which stocks are comparable to Companhia Energetica de Minas Gerais CEMIG Pref ADR?
From the same area (Utilities) we also value NextEra Energy, Inc, The Southern Company, Duke Energy Corporation, American Electric Power Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Companhia Energetica de Minas Gerais CEMIG Pref ADR stock attractive at the current price?
The data as of Nov 8, 2026: price $1.86, calculated fair value $4.89 (+163%), Quality Score 51/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CIG calculated?
We run Companhia Energetica de Minas Gerais CEMIG Pref through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $4.89 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Companhia Energetica de Minas Gerais CEMIG Pref currently trades 62% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
The closing price on Nov 6, 2026 was $1.86. Our model-based fair value is $4.89, about +163% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Companhia Energetica de Minas Gerais CEMIG Pref ADR right now?
The price is below even our cautious bear case ($2.84). The market is more pessimistic than our downside scenario. Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($2.84 to $6.40) leaves room in how you read the outcome.
Where does the earnings growth of Companhia Energetica de Minas Gerais CEMIG Pref (CIG) come from?
Earnings per share at Companhia Energetica de Minas Gerais CEMIG Pref grew +14.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.2 %, EBIT margin −1.5 %, tax rate +3.3 %, residual (interest, one-offs) +9.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Companhia Energetica de Minas Gerais CEMIG Pref
How large is the market capitalisation of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
The market capitalisation of Companhia Energetica de Minas Gerais CEMIG Pref is $6.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
The price-to-sales ratio of Companhia Energetica de Minas Gerais CEMIG Pref is 0.84 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
Earnings per share at Companhia Energetica de Minas Gerais CEMIG Pref are $0.3100 (price ÷ EPS = P/E 7.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
The net margin of Companhia Energetica de Minas Gerais CEMIG Pref is 11.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
The return on equity (ROE) of Companhia Energetica de Minas Gerais CEMIG Pref is 15.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
On an EBIT basis the return on assets of Companhia Energetica de Minas Gerais CEMIG Pref is 11.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
The operating margin of Companhia Energetica de Minas Gerais CEMIG Pref is 15.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
Revenue at Companhia Energetica de Minas Gerais CEMIG Pref is growing +3.4% versus a year earlier (3y avg +7.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Companhia Energetica de Minas Gerais CEMIG Pref (CIG)?
Earnings per share at Companhia Energetica de Minas Gerais CEMIG Pref are growing −20.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Companhia Energetica de Minas Gerais CEMIG Pref (CIG) carry?
The net debt of Companhia Energetica de Minas Gerais CEMIG Pref is R$18.0B (fiscal year 2025, ≈ 5.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 8, 2026