Rede Energia Participações S.A (REDE3) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Rede Energia Participações S.A stock BRL 7.17, price BRL 5.05, upside +41.9%, quality 27 out of 100. Rating: undervalued. Calculated from audited financials with 22 of our 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 6, 2026.
How to read this chart
60‑month range R$3.70 – R$7.30 · fair‑value band R$2.19 – R$8.96 · the R$5.05 price screens below the R$7.17 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Rede Energia Participações S.A. engages in the generation, distribution, and commercialization of electricity in Brazil. The company is involved in the construction, operation, maintenance, and services related to generation and distribution of electric energy.
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It offers its electricity to residential, industrial, commercial, rural, government, and public sector customers. The company was incorporated in 1929 and is based in Cataguases, Brazil.
Stock analysis
Rede Energia Participações S.A (REDE3) currently trades at R$5.05, while our model-based Fair Value estimate is R$7.17, implying the stock looks roughly 30% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of R$20.49 per share, and 18 of the 22 models we run sit above the R$5.05 price.
Bear case: the Growth DCF group reads lowest at R$3.88, and 4 of the 22 models stay below the price. Data coverage for this calculation is low.
Scenario range: R$2.19 (bear) to R$8.96 (bull), the price of R$5.05 sits inside 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 27/100 (below-average quality), in the Utilities sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Rede Energia Participações S.A reported revenue of R$17.2B in FY2025 versus R$14.7B in FY2021, a compound +3.9%/yr. Reported net income was R$1.2B in FY2025, compounding −3.1%/yr from FY2021.
Key figures
Market cap R$13.0B (≈ $2.4B) Mid · P/E ratio 11.2 · P/S ratio 0.60 · EPS (TTM) R$0.4500 · Dividend yield 3.5% · Net margin 5.1% · Return on equity 19.5% · Return on assets (EBIT) 13.0% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (low confidence).
What moves the price
The share trades about 26% below its 52-week high and at 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 42%, REDE3 screens cheaper than that median.
Fair Value models
BearR$2.19Fair Value R$7.17BullR$8.96
Price R$5.05 · Upside +41.9%
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 (R$0.2342 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.
Best data coverage
EPVR$3.08R$4.11R$4.9773
Residual IncomeR$2.58R$3.16R$4.3073
ROIC CompounderR$3.78R$6.50R$8.7667
All 22 models by family
DCF Models
FCF DCFR$0.6700R$3.08R$10.2565
5Y Revenue ExitR$3.22R$9.80R$23.6461
5Y EBITDA ExitR$4.12R$11.63R$26.3665
5Y P/E ExitR$1.38R$8.78R$18.8560
10Y Revenue ExitR$2.06R$11.65R$18.2460
10Y EBITDA ExitR$2.97R$13.41R$31.9557
10Y P/E ExitR$1.16R$8.08R$19.4053
Earnings-Based
Graham-DoddR$3.19R$22.22R$31.1861
Lynch FVR$11.48R$16.40R$21.3259
PEG = 1.0R$11.48R$16.40R$21.3255
EPVR$3.08R$4.11R$4.9773
Dividend Discount
Gordon GGMR$3.97R$7.07R$9.6266
DDM Multi-StageR$3.97R$6.50R$7.5665
Multiples
P/E MultipleR$6.33R$8.43R$10.5463
P/S MultipleR$5.97R$7.97R$9.9657
EV/EBITR$7.14R$11.27R$15.3963
EV/EBITDAR$5.11R$8.55R$12.0065
EV/RevenueR$3.18R$6.79R$10.3950
Growth DCF
Growth DCFR$0.3300R$3.88R$9.4664
Economic Profit
Residual IncomeR$2.58R$3.16R$4.3073
ROIC CompounderR$3.78R$6.50R$8.7667
Growth Earnings
Growth-Adj P/ER$14.35R$20.49R$26.6465
The fair value above starts from this blend and is adjusted for dilution from new shares.
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.42/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−3.8%
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.
+4.4%
Revenue growth 5 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.
+8.8%
Start year 2020 (pandemic). Over 10 years: +7.7% a year
Revenue growth 21 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.
+9.3%
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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.
+8.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.4%
Dividend (yield on the price)3.5%
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.5.4% vs 9.3%, slowing
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.16% → 23%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
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).
more than +80 %
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
Calculated on free cash flow for fiscal year 2025. Over the last twelve months it was negative, so the figure above is uncertain.
Compare Rede Energia Participações S.A with another stock
Price, fair value, quality and upside side by side.
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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 · 156 stocks
Beats the industry median on 10/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score27 · Bottom 25%
Fair Value upside+41.9% · Top 25%
Profitability
Return on equity (12 months)19.5% · Top 25%
Return on assets5.1% · Above median
Net margin (12 months)7.1% · Below median
Operating margin (12 months)19.9% · Above median
Growth and dividend
Revenue growth (quarter YoY)7.4% · Above median
Dividend yield (12 months)3.5% · Above median
Balance sheet
Debt / equity2.77× · Highest 25%
Valuation Multiplesvs Utilities - Regulated Electric median · lower = cheaper
P/E (12 months)11.2× · Cheaper than median
P/B2.10× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
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). "Rede Energia Participações S.A Fair Value". https://www.fairvalue-calculator.com/stock/REDE3
Frequently asked questions
Is Rede Energia Participações S.A (REDE3) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of R$7.17 versus a price of R$5.05, about +42% upside (undervalued).
What is the fair value of REDE3?
Our model-based fair value for Rede Energia Participações S.A is R$7.17 (as of Nov 6, 2026), built from audited fundamentals. The current price: R$5.05.
What is the quality score of REDE3?
Rede Energia Participações S.A has a Quality Score of 27/100. 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 Rede Energia Participações S.A (REDE3)?
Our model-based price target is the fair value of R$7.17 (as of Nov 6, 2026) from 22 valuation models. Cautious scenario R$2.19, optimistic scenario R$8.96. It is a calculation from audited fundamentals, not an analyst target.
What is the Rede Energia Participações S.A stock forecast for 2026?
Our models put fair value at R$7.17, about +42% upside versus a price of R$5.05 (undervalued). Cautious scenario R$2.19, optimistic scenario R$8.96. The calculation is refreshed regularly with new filings.
What is the revenue of Rede Energia Participações S.A (REDE3)?
Rede Energia Participações S.A reported trailing-twelve-month revenue of about R$20.2B (latest available figure, as of Nov 6, 2026).
Does Rede Energia Participações S.A pay a dividend?
Rede Energia Participações S.A currently shows a dividend yield of 3.49% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Rede Energia Participações S.A (REDE3) and when is the ex-dividend date?
Rede Energia Participações S.A pays a dividend of R$0.176 per share a year, a dividend yield of 3.5%. The last ex-dividend date was Mar 18, 2026. A dividend has been paid every year since 2016. The payout ratio is 39.1% of earnings. Free cash flow covers the dividend 0.03 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What growth is priced into Rede Energia Participações S.A (REDE3)?
For today's price to be fair in a discounted-cash-flow model, Rede Energia Participações S.A would have to grow free cash flow by more than 80 % per year for five years (discount rate 11.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.8 % per year. Calculated on free cash flow for fiscal year 2025. Over the last twelve months it was negative, so the figure above is uncertain. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of REDE3 use?
Our models discount Rede Energia Participações S.A at 11.2 %: a base by market capitalisation (mid), damped by beta 0.04, country premium for Brazil. 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 Rede Energia Participações S.A that is more than 80 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.2 %) and the same formula as our fair value.
How much growth has Rede Energia Participações S.A (REDE3) delivered so far?
Over the past 5 years revenue at Rede Energia Participações S.A grew +8.8 % a year. The price currently implies free-cash-flow growth of more than 80 % 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 Rede Energia Participações S.A (REDE3) growing?
The median revenue growth in the sector is +4.3 % a year. That is the yardstick for the growth priced into Rede Energia Participações S.A (more than 80 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Rede Energia Participações S.A (REDE3)?
The free-cash-flow yield on the price is 0.11 % in the last fiscal year (free cash flow was negative over the last twelve months): that much free cash flow Rede Energia Participações S.A produces per unit of market value. When it exceeds the discount rate of our models (11.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Rede Energia Participações S.A (REDE3)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Rede Energia Participações S.A it is R$7.17 per share (as of Nov 6, 2026), against a price of R$5.05. It is the blended result of 22 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Rede Energia Participações S.A stock overvalued or undervalued in 2026?
As of Nov 6, 2026, REDE3 trades below its calculated fair value: price R$5.05, fair value R$7.17, a gap of about +42% (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 REDE3?
No. The price is what the market pays today (R$5.05); the fair value is what the company's own numbers justify (R$7.17). For Rede Energia Participações S.A the two are R$2.12 per share apart. That gap is exactly why we show both numbers side by side.
How much is Rede Energia Participações S.A worth?
The market values Rede Energia Participações S.A at about R$13.0B (market capitalisation, as of Nov 6, 2026). Per share that is R$5.05; our models calculate a fair value of R$7.17 per share.
What do the bullish and bearish scenarios say about REDE3?
Our models span a range for Rede Energia Participações S.A: cautious scenario R$2.19, base R$7.17, optimistic R$8.96 per share (as of Nov 6, 2026, price R$5.05). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of REDE3?
Rede Energia Participações S.A trades at a price-to-earnings ratio of 11.2 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$7.17 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 17.7. Other multiples: PEG 1.3, P/B 2.1, P/S 0.9, EV/EBITDA 8.3.
What is the PEG ratio of REDE3?
The PEG ratio of Rede Energia Participações S.A is 1.28 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Rede Energia Participações S.A (REDE3)?
Balance-sheet figures for Rede Energia Participações S.A (as of Nov 6, 2026): return on equity 19.5%, debt of 2.77 per unit of equity. They feed the Quality Score of 27/100, which measures business quality independently of the share price.
How far is REDE3 from its 52-week high?
Rede Energia Participações S.A trades at R$5.05, about 26% below its 52-week high of R$6.80 and at the low of R$5.04 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of R$7.17 is for.
Which stocks are comparable to Rede Energia Participações S.A?
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 Rede Energia Participações S.A stock attractive at the current price?
The data as of Nov 6, 2026: price R$5.05, calculated fair value R$7.17 (+42%), Quality Score 27/100, from 22 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 REDE3 calculated?
We run Rede Energia Participações S.A through 22 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of R$7.17 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 13.0% above its aggregate fair value. Rede Energia Participações S.A currently trades 30% 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 Rede Energia Participações S.A (REDE3)?
The closing price on Nov 6, 2026 was R$5.05. Our model-based fair value is R$7.17, about +42% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Rede Energia Participações S.A right now?
The large discount to fair value meets weak quality (27/100). That raises the risk this is a value trap rather than a bargain. The model range is unusually wide (R$2.19 to R$8.96). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Where does the earnings growth of Rede Energia Participações S.A (REDE3) come from?
Earnings per share at Rede Energia Participações S.A grew +6.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.7 %, EBIT margin +12.9 %, tax rate −0.7 %, residual (interest, one-offs) −13.8 %. 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 Rede Energia Participações S.A
How large is the market capitalisation of Rede Energia Participações S.A (REDE3)?
The market capitalisation of Rede Energia Participações S.A is R$13.0B (≈ $2.4B). 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 Rede Energia Participações S.A (REDE3)?
The price-to-sales ratio of Rede Energia Participações S.A is 0.60 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Rede Energia Participações S.A (REDE3)?
Earnings per share at Rede Energia Participações S.A are R$0.4500 (price ÷ EPS = P/E 11.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Rede Energia Participações S.A (REDE3)?
The dividend yield of Rede Energia Participações S.A is 3.5% (payout 39.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Rede Energia Participações S.A (REDE3)?
The net margin of Rede Energia Participações S.A is 5.1% (last twelve months). 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 Rede Energia Participações S.A (REDE3)?
The return on equity (ROE) of Rede Energia Participações S.A is 19.5% (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 Rede Energia Participações S.A (REDE3)?
On an EBIT basis the return on assets of Rede Energia Participações S.A is 13.0% (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 Rede Energia Participações S.A (REDE3)?
The operating margin of Rede Energia Participações S.A is 19.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Rede Energia Participações S.A (REDE3)?
Revenue at Rede Energia Participações S.A is growing +7.4% versus a year earlier (3y avg +4.4%). 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 Rede Energia Participações S.A (REDE3)?
Earnings per share at Rede Energia Participações S.A are growing −42.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Rede Energia Participações S.A (REDE3) carry?
The net debt of Rede Energia Participações S.A is R$18.7B (fiscal year 2025). 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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