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Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3) fair value: what the stock is really worth

As of Nov 13, 2026: fair value (intrinsic value) of Companhia de Saneamento Básico do Estado de São Paulo - SABESP stock BRL 39.44, price BRL 27.22, upside +44.9%, quality 53 out of 100. Rating: undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.

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Utilities BR · ISIN BRSBSPACNOR5

CD Companhia de Saneamento Básico do Estado de São Paulo - SABESP logo Broad data Nov 12, 2026

Companhia de Saneamento Básico do Estado de São Paulo - SABESP

SBSP3 · SA

Cheap (31% below fair value), solid company and rising price: meets all 3 rules.

Get notified free when this changes
Fair value R$39.44 · Undervalued 
Rising price (uptrend) 
Healthy Growth (revenue 5y +15.0 %/yr in BRL) 
Solidly profitable · 17.5% net margin (TTM) 
Generates free cash flow 
2.4% dividend yield · Well covered
Ranks above peers (12/14) 
Wide moat 72/100
Recent news very positive 
Broad data 
Quality 53/100 
Moderate debt 
Profit last quarter 38% below a year ago. 

Main risks:

🚩ARSESP tariff factors could curb revenues🚩High capex debt could raise financing costs
Watch Companhia de Saneamento Básico do Estado de São Paulo - SABESP for free: we tell you when fair value or trend changes. Watch for free

What runs behind every stock

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

Price vs Fair Value

R$35.21 R$5.41 Fair Value R$39.44 Aug 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 12, 2026.

How to read this chart

60‑month range R$5.41 – R$35.21 · fair‑value band R$22.37 – R$51.27 · the R$27.22 price screens below the R$39.44 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 12, 2026.

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Company profile

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. It supplies treated water and sewage services on a wholesale basis.

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Companhia de Saneamento Básico do Estado de São Paulo - SABESP was founded in 1954 and is headquartered in São Paulo, Brazil.

Stock analysis

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3) currently trades at R$27.22, while our model-based Fair Value estimate is R$39.44, implying the stock looks roughly 31% undervalued today.

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Valuation

Bull case: the DCF Models group reads highest at a median of R$41.26 per share, and 17 of the 24 models we run sit above the R$27.22 price.

Bear case: the Dividend Discount group reads lowest at R$10.34, and 7 of the 24 models stay below the price. Data coverage for this calculation is high.

Scenario range: R$22.37 (bear) to R$51.27 (bull), the price of R$27.22 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 53/100 (solid quality), in the Utilities sector.

Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP reported revenue of R$38.1B in FY2025 versus R$19.5B in FY2021, a compound +18.2%/yr. Reported net income was R$8.5B in FY2025, compounding +38.4%/yr from FY2021.

Key figures

Market cap R$97.7B (≈ $17.2B) Large · P/E ratio 12.7 · P/S ratio 2.24 · EPS (TTM) R$2.14 · Dividend yield 2.4% · Net margin 17.5% · Return on equity 16.3% · Return on assets (EBIT) 11.4% (5-year average).

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 72 out of 100 (medium confidence).

What moves the price

The share trades about 23% below its 52-week high and 17% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Utilities peers we cover trades at −42% fair-value upside, at 45%, SBSP3 screens cheaper than that median.

Fair Value models

Bear R$22.37 Fair Value R$39.44 Bull R$51.27
Price R$27.22 · Upside +44.9%
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$1.29 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
FCF DCF R$25.07 R$46.22 R$78.03 78
Growth DCF R$24.74 R$43.75 R$70.86 76
Owner Earnings R$31.62 R$56.89 R$94.89 74
All 24 models by family
DCF Models
FCF DCF R$25.07 R$46.22 R$78.03 78
Owner Earnings R$31.62 R$56.89 R$94.89 74
5Y Revenue Exit R$15.45 R$29.28 R$47.26 70
5Y EBITDA Exit R$21.46 R$41.40 R$65.69 73
5Y P/E Exit R$22.37 R$43.22 R$66.41 69
10Y Revenue Exit R$18.24 R$31.79 R$51.05 65
10Y EBITDA Exit R$22.43 R$39.89 R$65.00 66
10Y P/E Exit R$22.98 R$41.11 R$65.55 62
Earnings-Based
Graham-Dodd R$16.32 R$70.11 R$95.80 64
Lynch FV R$21.60 R$30.86 R$40.12 61
PEG = 1.0 R$21.60 R$30.86 R$40.12 57
EPV R$12.36 R$15.28 R$17.73 74
Dividend Discount
Gordon GGM R$5.93 R$10.84 R$15.13 67
DDM Multi-Stage R$5.93 R$9.83 R$11.56 67
Multiples
P/E Multiple R$32.39 R$43.19 R$53.99 63
P/S Multiple R$20.25 R$27.00 R$33.76 58
EV/EBIT R$29.14 R$42.20 R$55.25 65
EV/EBITDA R$20.79 R$31.06 R$41.32 66
EV/Revenue R$8.88 R$16.98 R$25.08 52
Growth DCF
Growth DCF R$24.74 R$43.75 R$70.86 76
Rev-Margin DCF R$15.45 R$29.34 R$46.91 71
Economic Profit
Residual Income R$13.55 R$17.96 R$29.45 74
ROIC Compounder R$12.49 R$17.81 R$24.82 71
Growth Earnings
Growth-Adj P/E R$27.61 R$39.44 R$51.27 67

Open the full fair value analysis →

Quality Score breakdown

Overall quality 53/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 52
How much profit the company makes from its sales and capital
Quality Growth 10
Are margins and returns getting better?
Cashflow 74
Do the profits arrive as real cash?
Financial strength 43
Debt, balance sheet and risk of trouble
Investment 40
Does it invest with discipline instead of growing at any price?
Low Volatility 73
How calm the share price moves, does not count
Price momentum 51
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 36
Distance to the 52-week high, does not count
New shares 80
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

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. 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
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.
+22.9%
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.
+15.0%
Revenue growth 24 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.
+10.4%
What shareholders gained per year (last 5 years), in BRL (mathematically smoothed) ⓘ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. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. 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.
+57.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+55.0%
Dividend (yield on the price)2.4%
Per share before 2025divided by the spin-off factor 1.0296
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.30.4% vs 25.4%, picking up
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.25% → 32%
2025 sits 147% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2020 (pandemic)

Growth Forecast

Little optimism in the price
The price assumes less growth than the company has delivered so far and less 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).
−11.3%
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.
+3.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (Brazil: IMF forecast 3.3% a year to 2030, 5.4% from 2016 to 2025) that is about −14.1% a year for the price and +0.2% for the forecasts.
Forecast 2026 (sales)−34.2%
Forecast 2027 (sales)+19.1%
Projected 2028 (sales)+16.9%
Projected 2029 (sales)+14.8%
Projected 2030 (sales)+12.7%

Watch SBSP3, get fair value alerts →

Recent news

News mood ⓘNews mood, the average tone of recent news (93 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. Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Note from the team Oct 31, 2026
AI conclusion: Regional scale and essential service traits provide stability, yet limited pricing freedom and state ownership constraints restrict operational flexibility.
Main risk: The concession contract ties tariff adjustments to ARSESP's U-Factor for universalization targets and Q-Factor for quality, so missing coverage or performance goals could reduce allowed rate increases and hit revenues.
Bull case: By meeting universalization targets efficiently through technology-driven cost reductions and operational improvements, the company could secure full tariff adjustments and expand its regulated asset base profitably.
Bear case: If performance targets are missed or interest rates remain high, constrained tariffs combined with rising debt service could limit investment capacity and strain cash flows over the concession period.
Sabesp has just completed the share incorporation of EMAE, issuing nearly ten million new shares and lifting its capital base while its controlling shareholder drives faster infrastructure rollout. Heavy capex to meet 2029 universalization targets is lifting revenues yet pressuring near-term profits through higher costs and debt service. Our models see the stock as undervalued, but will the efficiency gains from these investments outpace the ongoing financial drag?
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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 Water · 66 stocks

Beats the industry median on 12/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 53 · Above median
Fair Value upside +44.9% · Top 25%
Profitability
Return on equity (12 months) 16.3% · Top 25%
Return on assets 8.0% · Top 25%
Net margin (12 months) 17.5% · Above median
Operating margin (12 months) 32.8% · Top 25%
Growth and dividend
Revenue growth (quarter YoY) 7.6% · Above median
Dividend yield (12 months) 2.4% · Below median
Balance sheet
Debt / equity 0.82× · Above median

Valuation Multiplesvs Utilities - Regulated Water median · lower = cheaper

P/E (12 months) 12.7× · Cheaper than median
P/B 2.20× · book value is mostly intangible assets ⓘGoodwill and other intangible assets (such as prices paid for past acquisitions, brands, licences or film and series rights) are larger than the equity. So we do not rank this P/B against the peer group.
P/S (12 months) 2.24× · Cheaper than median
Price / free cash flow (fiscal year) 11.5× · Cheaper than median
EV/EBITDA 7.7× · Cheapest 25%
PEG 0.49× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)93 · sector 3
FUTURE (revenue growth)38 · sector 31
PAST (return on equity)65 · sector 30
HEALTH (low debt)59 · sector 67
DIVIDEND (yield)49 · sector 52

Context: sector, industry, market

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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Companhia de Saneamento Básico do Estado de São Paulo - SABESP: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "Companhia de Saneamento Básico do Estado de São Paulo - SABESP Fair Value". https://www.fairvalue-calculator.com/stock/SBSP3

Frequently asked questions

Is Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3) overvalued or undervalued?
As of Nov 12, 2026, our model estimates a fair value of R$39.44 versus a price of R$27.22, about +45% upside (undervalued).
What is the fair value of SBSP3?
Our model-based fair value for Companhia de Saneamento Básico do Estado de São Paulo - SABESP is R$39.44 (as of Nov 12, 2026), built from audited fundamentals. The current price: R$27.22.
What is the quality score of SBSP3?
Companhia de Saneamento Básico do Estado de São Paulo - SABESP has a Quality Score of 53/100. 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 de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
Our model-based price target is the fair value of R$39.44 (as of Nov 12, 2026) from 24 valuation models. Cautious scenario R$22.37, optimistic scenario R$51.27. It is a calculation from audited fundamentals, not an analyst target.
What is the Companhia de Saneamento Básico do Estado de São Paulo - SABESP stock forecast for 2026?
Our models put fair value at R$39.44, about +45% upside versus a price of R$27.22 (undervalued). Cautious scenario R$22.37, optimistic scenario R$51.27. The calculation is refreshed regularly with new filings.
What is the revenue of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
Companhia de Saneamento Básico do Estado de São Paulo - SABESP reported trailing-twelve-month revenue of about R$41.6B (latest available figure, as of Nov 12, 2026).
Does Companhia de Saneamento Básico do Estado de São Paulo - SABESP pay a dividend?
Companhia de Saneamento Básico do Estado de São Paulo - SABESP currently shows a dividend yield of 2.44% relative to its recent price (as of Nov 12, 2026).
How much is the dividend of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3) and when is the ex-dividend date?
Companhia de Saneamento Básico do Estado de São Paulo - SABESP pays a dividend of R$0.664 per share a year, a dividend yield of 2.4%. The last ex-dividend date was Nov 11, 2026. A dividend has been paid every year since 2012. The payout ratio is 31.0% of earnings. Free cash flow covers the dividend 3.45 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
For today's price to be fair in a discounted-cash-flow model, Companhia de Saneamento Básico do Estado de São Paulo - SABESP would have to grow free cash flow by -11.3 % per year for five years (discount rate 10.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +16.4 % per year. As of Nov 12, 2026.
What discount rate (WACC) does the fair value of SBSP3 use?
Our models discount Companhia de Saneamento Básico do Estado de São Paulo - SABESP at 10.7 %: a base by market capitalisation (large), damped by beta 0.12, 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 Companhia de Saneamento Básico do Estado de São Paulo - SABESP that is -11.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.7 %) and the same formula as our fair value.
How much growth has Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3) delivered so far?
Over the past 5 years revenue at Companhia de Saneamento Básico do Estado de São Paulo - SABESP grew +16.4 % a year. The price currently implies free-cash-flow growth of -11.3 % 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 de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3) growing?
The median revenue growth in the sector is +4.8 % a year. That is the yardstick for the growth priced into Companhia de Saneamento Básico do Estado de São Paulo - SABESP (-11.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
The free-cash-flow yield on the price is 43.32 %: that much free cash flow Companhia de Saneamento Básico do Estado de São Paulo - SABESP produces per unit of market value. When it exceeds the discount rate of our models (10.7 %), 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 de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Companhia de Saneamento Básico do Estado de São Paulo - SABESP it is R$39.44 per share (as of Nov 12, 2026), against a price of R$27.22. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Companhia de Saneamento Básico do Estado de São Paulo - SABESP stock overvalued or undervalued in 2026?
As of Nov 12, 2026, SBSP3 trades below its calculated fair value: price R$27.22, fair value R$39.44, a gap of about +45% (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 SBSP3?
No. The price is what the market pays today (R$27.22); the fair value is what the company's own numbers justify (R$39.44). For Companhia de Saneamento Básico do Estado de São Paulo - SABESP the two are R$12.22 per share apart. That gap is exactly why we show both numbers side by side.
How much is Companhia de Saneamento Básico do Estado de São Paulo - SABESP worth?
The market values Companhia de Saneamento Básico do Estado de São Paulo - SABESP at about R$97.7B (market capitalisation, as of Nov 12, 2026). Per share that is R$27.22; our models calculate a fair value of R$39.44 per share.
What do the bullish and bearish scenarios say about SBSP3?
Our models span a range for Companhia de Saneamento Básico do Estado de São Paulo - SABESP: cautious scenario R$22.37, base R$39.44, optimistic R$51.27 per share (as of Nov 12, 2026, price R$27.22). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SBSP3?
Companhia de Saneamento Básico do Estado de São Paulo - SABESP trades at a price-to-earnings ratio of 12.7 (as of Nov 12, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$39.44 is built from several models across several years. Other multiples: PEG 0.5, P/B 2.2, P/S 2.2, EV/EBITDA 7.7.
What is the PEG ratio of SBSP3?
The PEG ratio of Companhia de Saneamento Básico do Estado de São Paulo - SABESP is 0.49 (P/E divided by earnings growth, as of Nov 12, 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 de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
Balance-sheet figures for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (as of Nov 12, 2026): return on equity 16.3%, debt of 0.82 per unit of equity. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is SBSP3 from its 52-week high?
Companhia de Saneamento Básico do Estado de São Paulo - SABESP trades at R$27.22, about 23% below its 52-week high of R$35.21 and 17% above the low of R$23.31 (as of Nov 13, 2026). Distance from the high says nothing about value: that is what the fair value of R$39.44 is for.
Which stocks are comparable to Companhia de Saneamento Básico do Estado de São Paulo - SABESP?
From the same area (Utilities) we also value American Water Works Company, Essential Utilities, Inc, Grandblue Environment Co, American States Water 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 de Saneamento Básico do Estado de São Paulo - SABESP stock attractive at the current price?
The data as of Nov 12, 2026: price R$27.22, calculated fair value R$39.44 (+45%), Quality Score 53/100, from 24 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 SBSP3 calculated?
We run Companhia de Saneamento Básico do Estado de São Paulo - SABESP through 24 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$39.44 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 13.9% above its aggregate fair value. Companhia de Saneamento Básico do Estado de São Paulo - SABESP currently trades 31% 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 de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
The closing price on Nov 13, 2026 was R$27.22. Our model-based fair value is R$39.44, about +45% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Companhia de Saneamento Básico do Estado de São Paulo - SABESP right now?
Solid quality (53/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (R$22.37 to R$51.27) leaves room in how you read the outcome.
Where does the earnings growth of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3) come from?
Earnings per share at Companhia de Saneamento Básico do Estado de São Paulo - SABESP grew +19.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +11.6 %, EBIT margin +4.5 %, tax rate −0.1 %, residual (interest, one-offs) +2.5 %. 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 de Saneamento Básico do Estado de São Paulo - SABESP

How large is the market capitalisation of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
The market capitalisation of Companhia de Saneamento Básico do Estado de São Paulo - SABESP is R$97.7B (≈ $17.2B). 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 de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
The price-to-sales ratio of Companhia de Saneamento Básico do Estado de São Paulo - SABESP is 2.24 (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 Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
Earnings per share at Companhia de Saneamento Básico do Estado de São Paulo - SABESP are R$2.14 (price ÷ EPS = P/E 12.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
The dividend yield of Companhia de Saneamento Básico do Estado de São Paulo - SABESP is 2.4% (payout 31.0%). 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 Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
The net margin of Companhia de Saneamento Básico do Estado de São Paulo - SABESP is 17.5% (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 Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
The return on equity (ROE) of Companhia de Saneamento Básico do Estado de São Paulo - SABESP is 16.3% (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 de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
On an EBIT basis the return on assets of Companhia de Saneamento Básico do Estado de São Paulo - SABESP 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 de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
The operating margin of Companhia de Saneamento Básico do Estado de São Paulo - SABESP is 32.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
Revenue at Companhia de Saneamento Básico do Estado de São Paulo - SABESP is growing +7.6% versus a year earlier (3y avg +20.0%). 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 de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3)?
Earnings per share at Companhia de Saneamento Básico do Estado de São Paulo - SABESP are growing −38.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3) carry?
The net debt of Companhia de Saneamento Básico do Estado de São Paulo - SABESP is R$35.3B (fiscal year 2025, ≈ 4.4 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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