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CIGN Fair Value & Analysis

Utilities · MX · Market cap 109B MXN

C CIGN CIGN · MX
Price33.00 MXN
Fair Value72.99 MXN
Upside+121.2%
Quality47/100

Strengths

Trades 121% below our fair value of 72.99 MXN
Healthy Growth
Solidly profitable · 11.2% net margin
Moderate debt · generates free cash flow

Risks

!Moderate moat 54/100
Healthy Growth
Solidly profitable · 11.2% net margin
Moderate debt · generates free cash flow
3.23% dividend yield
Moderate moat 54/100
Evidence: High Range 36.96 MXN – 119.52 MXN Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 8 days ago

Fair value updated Aug 13, 2026, revised from 85.31 MXN to 72.99 MXN (−14.4%) since Jul 20, 2026. Share price −13.2% over the past month.

Below-average quality, screening 121% undervalued on our models.

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

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What matters now

  • The price is below even our cautious bear case (36.96 MXN). The market is more pessimistic than our downside scenario.
  • The model range is unusually wide (36.96 MXN to 119.52 MXN). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (47/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

47.00 MXN 23.62 MXN Fair Value 72.99 MXN Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 23.62 MXN – 47.00 MXN · fair‑value band 36.96 MXN – 119.52 MXN · the 33.00 MXN price screens below the 72.99 MXN fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

CIGN (CIGN) currently trades at 33.00 MXN, while our model-based Fair Value estimate is 72.99 MXN, implying the stock looks roughly 121.2% undervalued today. The Quality Score stands at 47/100 (below-average quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, CIGN generated revenue of 43.4B MXN 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 17.6B MXN. Fundamentals as of Aug 13, 2026

Our scenario range runs from 36.96 MXN (bear case) to 119.52 MXN (bull case); at 33.00 MXN, the current price sits below 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 30% below its 52-week high, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -27% fair-value upside, at 121%, CIGN screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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
Growth DCF 7.45 MXN 15.19 MXN 27.49 MXN 80
Residual Income 11.28 MXN 14.86 MXN 48.70 MXN 76
Rev-Margin DCF 11.97 MXN 24.27 MXN 38.95 MXN 74
All 24 models by family
DCF Models
FCF DCF 7.34 MXN 15.23 MXN 27.83 MXN 38
Owner Earnings 17.07 MXN 31.17 MXN 53.64 MXN 31
5Y Revenue Exit 11.97 MXN 24.53 MXN 41.08 MXN 39
5Y EBITDA Exit 11.40 MXN 23.43 MXN 37.87 MXN 41
5Y P/E Exit 12.89 MXN 26.31 MXN 40.87 MXN 38
10Y Revenue Exit 9.58 MXN 20.78 MXN 36.79 MXN 36
10Y EBITDA Exit 9.84 MXN 20.00 MXN 34.27 MXN 37
10Y P/E Exit 10.81 MXN 22.03 MXN 36.63 MXN 35
Earnings-Based
Graham-Dodd 11.64 MXN 42.08 MXN 56.74 MXN 54
Lynch FV 9.97 MXN 14.24 MXN 18.52 MXN 50
PEG = 1.0 9.97 MXN 14.24 MXN 18.52 MXN 46
EPV 12.85 MXN 15.83 MXN 18.45 MXN 59
Multiples
P/E Multiple 23.11 MXN 30.81 MXN 38.52 MXN 63
P/S Multiple 21.83 MXN 29.10 MXN 36.38 MXN 58
P/B Multiple 13.49 MXN 17.98 MXN 22.48 MXN 55
EV/EBIT 19.81 MXN 28.11 MXN 36.40 MXN 53
EV/EBITDA 15.54 MXN 22.41 MXN 29.28 MXN 54
EV/Revenue 15.06 MXN 23.68 MXN 32.31 MXN 43
Asset-Based
NCAV (Graham) 4.99 MXN 6.69 MXN 9.99 MXN 50
Growth DCF
Growth DCF 7.45 MXN 15.19 MXN 27.49 MXN 80
Rev-Margin DCF 11.97 MXN 24.27 MXN 38.95 MXN 74
Economic Profit
Residual Income 11.28 MXN 14.86 MXN 48.70 MXN 76
ROIC Compounder 13.78 MXN 19.63 MXN 27.46 MXN 72
Growth Earnings
Growth-Adj P/E 17.24 MXN 24.63 MXN 32.02 MXN 68

Widest divergence: Growth Earnings (24.63 MXN) versus Asset-Based (6.69 MXN). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 43.4B MXN
Revenue growth (YoY) +6.3%
Net margin 11.2%
Return on equity 17.0%
Free cash flow 3.0B MXN FY2025
P/E ratio 6.4 as of Jun 10, 2026
More key figures
Operating margin 12.5%
EPS (TTM) 5.91 MXN
Dividend yield 3.2%
EPS growth (YoY) -5.8%
Net debt 17.6B MXN FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 46 · Market factors (momentum, volatility) 40

Profitability 46
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 13
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.

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

CIGN reported revenue of 42.8B MXN in FY2025 versus 33.6B MXN in FY2021, a compound +6.2%/yr. Reported net income was 4.9B MXN 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 MXN
Latest YoY
+7.4%
Avg. 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. 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. growth/yr (12Y) 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.
+9.3%
Revenue +6.2%/yr
FY21 33.6B MXN
FY22 34.5B MXN
FY23 36.9B MXN
FY24 39.8B MXN
FY25 42.8B MXN
Net income +6.9%/yr
FY21 3.8B MXN
FY22 4.1B MXN
FY23 5.8B MXN
FY24 7.1B MXN
FY25 4.9B MXN

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

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

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Frequently asked questions

Is CIGN overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 72.99 MXN versus a price of 33.00 MXN, about +121% (undervalued).
What is the fair value of CIGN?
Our model-based fair value for CIGN is 72.99 MXN (as of Aug 13, 2026), built from audited fundamentals. The current price: 33.00 MXN.
What is the quality score of CIGN?
CIGN has a Quality Score of 47/100. 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 CIGN?
CIGN reported trailing-twelve-month revenue of about 43.4B MXN (latest available figure, as of Aug 13, 2026).
What is the net profit margin of CIGN?
The net profit margin of CIGN is about 11.2%, meaning it keeps roughly 11.2% of revenue as net income. Based on the latest reported figures.
Does CIGN pay a dividend?
CIGN currently shows a dividend yield of about 3.23% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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