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CIG-C Fair Value & Analysis

Utilities · US · Market cap $8.8B · ISIN US2044098828

What is CIG-C really worth?

CC CIG-C logo CIG-C CIG-C · US
Price$3.28
Fair Value$4.86
Upside+48.2%
Quality44/100

Below-average quality, trading 33% below our fair value of $4.86.

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Strengths

Healthy Growth (revenue 5y +11.1 %/yr)
Solidly profitable · 11.2% net margin
Moderate debt · generates free cash flow
Ranks above peers (9/14)

Risks

!Moderate moat 51/100
Evidence: High Range $2.38 – $7.06

Fair value as of: Aug 27, 2026

From 26 valuation models · updated 8 days ago

Fair value updated Aug 27, 2026, revised from $4.82 to $4.86 (+0.8%) since Aug 13, 2026. Share price +2.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • The model range is unusually wide ($2.38 to $7.06). The outcome hinges heavily on assumptions, so read the point estimate with caution.

Price vs Fair Value (5 years)

$3.87 $0.9865 Fair Value $4.86 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range $0.9865 – $3.87 · fair‑value band $2.38 – $7.06 · the $3.28 price screens below the $4.86 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

CIG-C (CIG-C) currently trades at $3.28, while our model-based Fair Value estimate is $4.86, implying the stock looks roughly 32.5% undervalued today. The Quality Score stands at 44/100 (below-average quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of $25.56 per share, and 26 of the 26 models we run sit above the $3.28 price. Bear case: the Asset-Based group reads lowest at $6.69, and 0 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, CIG-C generated revenue of $43.4B at a net margin of 11.2%. Revenue grew 6.3% year over year. It earns a return on equity of 17.0%. Net debt stands at $18.0B. Fundamentals as of Aug 27, 2026

Our scenario range runs from $2.38 (bear case) to $7.06 (bull case); at $3.28, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 47% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at −37% fair-value upside, at 48%, CIG-C screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF best evidence $8.14 $16.44 $29.36 77
Growth DCF $8.18 $16.10 $28.16 75
Owner Earnings $17.73 $32.06 $54.36 74
All 26 models by family
DCF Models
FCF DCF best evidence $8.14 $16.44 $29.36 77
Owner Earnings $17.73 $32.06 $54.36 74
5Y Revenue Exit $12.20 $24.97 $41.89 70
5Y EBITDA Exit $11.59 $23.78 $38.52 73
5Y P/E Exit $13.11 $26.74 $41.68 69
10Y Revenue Exit $9.96 $21.25 $37.60 64
10Y EBITDA Exit $10.19 $20.43 $34.98 66
10Y P/E Exit $11.15 $22.48 $37.44 61
Earnings-Based
Graham-Dodd $11.64 $44.19 $59.82 64
Lynch FV $10.72 $15.32 $19.92 61
PEG = 1.0 $10.72 $15.32 $19.92 57
EPV $12.59 $15.37 $17.78 74
Dividend Discount
Gordon GGM $11.94 $23.80 $36.04 67
DDM Multi-Stage $11.94 $20.57 $25.12 67
Multiples
P/E Multiple $23.11 $30.81 $38.52 63
P/S Multiple $21.83 $29.10 $36.38 58
P/B Multiple $13.48 $17.97 $22.46 55
EV/EBIT $19.81 $28.11 $36.40 65
EV/EBITDA $15.46 $22.30 $29.15 67
EV/Revenue $15.06 $23.68 $32.31 53
Asset-Based
NCAV (Graham) $4.99 $6.69 $9.98 54
Growth DCF
Growth DCF $8.18 $16.10 $28.16 75
Rev-Margin DCF $12.20 $24.70 $39.83 70
Economic Profit
Residual Income $10.69 $13.08 $26.41 72
ROIC Compounder $13.45 $18.93 $26.14 71
Growth Earnings
Growth-Adj P/E $17.89 $25.56 $33.23 67

Widest divergence: Growth Earnings ($25.56) versus Asset-Based ($6.69). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 9.1 as of Jun 19, 2026
P/S ratio 1.04 P/E × margin
EPS (TTM) $0.3400 price ÷ EPS = P/E 9.1
Net margin 11.5% FY2025
Return on equity 17.0% TTM
Return on assets (EBIT) 11.4% avg 5y
More key figures
Profitability
Operating margin 12.5% TTM
Growth
Revenue (TTM) $43.4B TTM
Revenue growth (YoY) +6.3% 3y avg +7.4%
EPS growth (YoY) −5.8%
Balance sheet & cash flow
Free cash flow $3.3B FY2025
Net debt $18.0B FY2025 · ≈ 5.4 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 43 · Market factors (momentum, volatility) 65

Profitability 46
Margins and returns on capital today
Quality Growth 21
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 38
Balance sheet, leverage, solvency risk
Investment 71
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 63
Distance to the 52-week high (market factor)
Net Issuance 40
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Companhia Energética de Minas Gerais - CEMIG, through its subsidiaries, engages in the generation, transmission, distribution, and sale of energy in Brazil.

Full company description

Companhia Energética de Minas Gerais - CEMIG, through its subsidiaries, engages in the generation, transmission, distribution, and sale of energy in Brazil. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

CIG-C 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.

Growth Quality 88/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$42.8B
Latest YoY
+7.4%
Avg. revenue growth/yr (3Y) 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.
+7.4%
Avg. revenue growth/yr (5Y) 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.
+11.1%
Avg. revenue growth/yr (25Y) 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.
+10.2%
Value creation/yr (5Y, in BRL) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
+4.2% (4.2 + 0.0)
Revenue +6.2%/yr
FY21 R$33.6B
FY22 R$34.5B
FY23 R$36.9B
FY24 R$39.8B
FY25 R$42.8B
Net income +6.9%/yr
FY21 R$3.8B
FY22 R$4.1B
FY23 R$5.8B
FY24 R$7.1B
FY25 R$4.9B
Character of growth · EPS growth decomposed (2014-2025) +14.6 % p.a.
Revenue per share +3.2 %

of which total revenue +8.0 % · buybacks/dilution −4.5 %

EBIT margin −1.5 %
Tax rate +3.3 %
Residual (interest, one-offs) +9.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "CIG-C Fair Value". https://www.fairvalue-calculator.com/stock/CIG-C

Peer Group

Utilities - Regulated Electric · 153 stocks

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.

Quality Score 44 · Below median
Fair Value upside +48% · Top 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 11% · Below median
Operating margin (TTM) 13% · Below median
Revenue growth 6% · Below median
Dividend yield (TTM) 39.4% · Top 25%
Debt / equity 0.58× · Lower than median

Valuation Multiples vs Utilities - Regulated Electric median · lower = cheaper

P/E (TTM) 9.1× · Cheaper than 75% of peers
P/B 0.31× · Cheaper than 75% of peers
P/S (TTM) 0.20× · Cheaper than 75% of peers
P/FCF 2.7× · Pricier than median
EV/EBITDA 3.0× · Cheaper than 75% of peers
PEG 0.33× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE98 · sector 0
FUTURE32 · sector 32
PAST68 · sector 39
HEALTH71 · sector 52
DIVIDEND0 · sector 66

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
NextEra Energy, Inc NEE $83.47 $32.94 −61%
The Southern Company SO $88.25 $58.81 −33%
Duke Energy Corporation DUK $120.25 $74.89 −38%
National Grid plc NGG $80.68 $63.94 −21%
American Electric Power Company AEP $122.96 $77.23 −37%
Dominion Energy, Inc D $66.01 $46.34 −30%
Entergy Corporation ETR $105.75 $52.92 −50%
Xcel Energy Inc XEL $76.34 $44.61 −42%
Exelon Corporation EXC $43.96 $37.60 −14%
Endesa, S.A ELE €42.30 €25.72 −39%

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Frequently asked questions

Is CIG-C overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of $4.86 versus a price of $3.28, about +48% upside (undervalued).
What is the fair value of CIG-C?
Our model-based fair value for CIG-C is $4.86 (as of Aug 27, 2026), built from audited fundamentals. The current price: $3.28.
What is the quality score of CIG-C?
CIG-C has a Quality Score of 44/100. 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 revenue of CIG-C?
CIG-C reported trailing-twelve-month revenue of about $43.4B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of CIG-C?
The net profit margin of CIG-C is about 11.2%, meaning it keeps roughly 11.2% of revenue as net income. Based on the latest reported figures.
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