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ISA Energía Brasil S.A (ISAE3) Fair Value & Analysis

Utilities · BR · Market cap R$21.1B

IE ISA Energía Brasil S.A ISAE3 · SA
PriceR$31.50
Fair ValueR$57.78
Upside+83.4%
Quality47/100
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Expensive Growth
Highly profitable · 24.7% net margin
Moderate debt · negative free cash flow
5.75% dividend yield
Ranks above peers (9/14)
Wide moat 70/100
Evidence: High Range R$43.34 – R$72.23 Share as image

Fair value as of: Jul 12, 2026

From 17 valuation models · updated 28 days ago

Share price −2.9% over the past month.

Below-average quality, screening 83% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (R$43.34). The market is more pessimistic than our downside scenario.
  • 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)

R$35.25 R$21.90 Fair Value R$57.78 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range R$21.90 – R$35.25 · fair‑value band R$43.34 – R$72.23 · the R$31.50 price screens below the R$57.78 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

ISA Energía Brasil S.A (ISAE3) currently trades at R$31.50, while our model-based Fair Value estimate is R$57.78, implying the stock looks roughly 83.4% 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, ISA Energía Brasil S.A generated revenue of R$9.5B at a net margin of 24.7%. Revenue grew 4.1% year over year. It earns a return on equity of 11.3%. Net debt stands at R$14.6B. Fundamentals as of Jul 12, 2026

Our scenario range runs from R$43.34 (bear case) to R$72.23 (bull case); at R$31.50, 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 11% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -59% fair-value upside, at 83%, ISAE3 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 BearBaseBull Evidence
Highest evidence
Residual Income R$29.56 R$33.97 R$56.85 76
ROIC Compounder R$25.92 R$36.26 R$54.36 72
Gordon GGM R$23.71 R$49.29 R$78.20 70
All 17 models by family
DCF Models
Owner Earnings R$34.31 R$98.93 R$229.16 31
Earnings-Based
Graham-Dodd R$25.26 R$162.96 R$227.91 54
Lynch FV R$47.28 R$67.54 R$87.81 50
PEG = 1.0 R$47.28 R$67.54 R$87.81 46
EPV R$25.92 R$33.78 R$40.66 59
Dividend Discount
Gordon GGM R$23.71 R$49.29 R$78.20 70
DDM Multi-Stage R$23.71 R$41.57 R$51.74 61
Multiples
P/E Multiple R$50.16 R$66.87 R$83.59 63
P/S Multiple R$26.78 R$35.71 R$44.64 58
P/B Multiple R$43.34 R$57.78 R$72.23 55
EV/EBIT R$49.29 R$72.80 R$96.32 53
EV/EBITDA R$26.17 R$41.97 R$57.78 54
EV/Revenue R$3.73 R$14.45 R$25.16 43
Asset-Based
NCAV (Graham) R$16.05 R$21.51 R$32.10 50
Economic Profit
Residual Income R$29.56 R$33.97 R$56.85 76
ROIC Compounder R$25.92 R$36.26 R$54.36 72
Growth Earnings
Growth-Adj P/E R$62.41 R$89.16 R$115.91 68

Widest divergence: DCF Models (R$98.93) versus Asset-Based (R$21.51). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) R$9.5B
Revenue growth (YoY) +4.1%
Net margin 24.7%
Return on equity 11.3%
Free cash flow −R$1.3B FY2025
P/E ratio 9.5
More key figures
Operating margin 43.9%
EPS (TTM) R$3.56
Dividend yield 5.5%
EPS growth (YoY) -14.6%
Net debt R$14.6B FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 41 · Market factors (momentum, volatility) 56

Profitability 42
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 82
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

ISA Energía Brasil S.A. engages in the electric power transmission business in Brazil. As of December 31, 2025, it had a total installed transformation capacity of 84,910 MVA together with transmission lines of 23,000 kilometers. It operates in the states of Bahia, Espírito Santo, Minas Gerais, Rio de Janeiro, and São Paulo. ISA Energía Brasil S.A.

Full company description

ISA Energía Brasil S.A. engages in the electric power transmission business in Brazil. As of December 31, 2025, it had a total installed transformation capacity of 84,910 MVA together with transmission lines of 23,000 kilometers. It operates in the states of Bahia, Espírito Santo, Minas Gerais, Rio de Janeiro, and São Paulo. ISA Energía Brasil S.A. was incorporated in 1999 and is headquartered in São Paulo, Brazil.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ISA Energía Brasil S.A reported revenue of R$9.4B in FY2025 versus R$5.5B in FY2021, a compound +14.2%/yr. Reported net income was R$2.4B in FY2025, compounding −5.1%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
R$9.4B
Latest YoY
+18.1%
Avg. growth/yr (3Y)
+20.0%
Revenue +14.2%/yr
FY21 R$5.5B
FY22 R$5.5B
FY23 R$6.2B
FY24 R$8.0B
FY25 R$9.4B
Net income −5.1%/yr
FY21 R$3.0B
FY22 R$2.3B
FY23 R$2.8B
FY24 R$3.5B
FY25 R$2.4B

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Cite: Fair Value Calculator (2026). "ISA Energía Brasil S.A Fair Value". https://www.fairvalue-calculator.com/stock/ISAE3

Peer Group

Utilities - Independent Power Producers · 78 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 47 · Below median
Fair Value upside +83% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 25% · Top 25%
Operating margin (TTM) 44% · Top 25%
Revenue growth 4% · Top 25%
Dividend yield (TTM) 5.8% · Top 25%
Debt / equity 0.73× · Higher than median

Valuation Multiples vs Utilities - Independent Power Producers median · lower = cheaper

P/E (TTM) 9.0× · Cheaper than median
P/B 1.00× · Cheaper than median
P/S (TTM) 2.22× · Pricier than median
EV/EBITDA 9.7× · Pricier than median
PEG 1.75× · Pricier than median

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.

VALUE 100 · sector 23
FUTURE 21 · sector 0
PAST 45 · sector 31
HEALTH 64 · sector 70
DIVIDEND 100 · sector 52

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Independent Power Producers stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Constellation Energy Corporation CEG $257.57 $89.08 -65%
Vistra Corp VST $158.86 $47.59 -70%
Adani Power Limited ADANIPOWER ₹218.45 ₹75.57 -65%
CGN Power Co 003816 ¥3.88 ¥3.13 -19%
NRG Energy, Inc NRG $137.90 $56.02 -59%
Gulf Development Public Company GULF 67.50 THB 40.44 THB -40%
Adani Energy Solutions Limited ADANIENSOL ₹1,730 ₹342.02 -80%
Talen Energy Corporation TLN $372.37 $44.67 -88%
Datang International Power Generation Co 601991 ¥5.80 ¥4.95 -15%
Power Assets Holdings 0006 HK$58.45 HK$31.90 -45%

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Frequently asked questions

Is ISA Energía Brasil S.A (ISAE3) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of R$57.78 versus a price of R$31.50, about +83% (undervalued).
What is the fair value of ISAE3?
Our model-based fair value for ISA Energía Brasil S.A is R$57.78 (as of Jul 12, 2026), built from audited fundamentals. The current price is R$31.50.
What is the quality score of ISAE3?
ISA Energía Brasil S.A 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 ISA Energía Brasil S.A (ISAE3)?
ISA Energía Brasil S.A reported trailing-twelve-month revenue of about R$9.5B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of ISAE3?
The net profit margin of ISA Energía Brasil S.A is about 24.7%, meaning it keeps roughly 24.7% of revenue as net income. Based on the latest reported figures.
Does ISA Energía Brasil S.A pay a dividend?
ISA Energía Brasil S.A currently shows a dividend yield of about 5.51% relative to its recent price (as of Jul 12, 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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