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SBSP3 Fair Value & Analysis

Utilities · BR · Market cap R$102B

S SBSP3 SBSP3 · SA
PriceR$27.39
Fair ValueR$31.23
Upside+14.0%
Quality57/100
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Healthy Growth
Highly profitable · 22.0% net margin
Moderate debt · generates free cash flow
2.27% dividend yield
Ranks above peers (10/15)
Wide moat 77/100
Evidence: High Range R$20.90 – R$51.56 Share as image

Fair value as of: Jul 19, 2026

From 26 valuation models · updated 19 days ago

Share price −7.1% over the past month.

A solid business, screening 14% undervalued on our models.

What matters now

  • A fairly wide model range (R$20.90 to R$51.56) leaves room in how you read the outcome.
  • Our model range runs from R$20.90 (bear) to R$51.56 (bull), base R$31.23. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 57/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

R$35.21 R$5.41 Fair Value R$31.23 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range R$5.41 – R$35.21 · fair‑value band R$20.90 – R$51.56 · the R$27.39 price screens below the R$31.23 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

SBSP3 (SBSP3) currently trades at R$27.39, while our model-based Fair Value estimate is R$31.23, implying the stock looks roughly 14.0% undervalued today. We read business quality at 57/100 (solid 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, SBSP3 generated revenue of R$39.6B at a net margin of 22.0%. Revenue grew 18.3% year over year. It earns a return on equity of 21.2%. Net debt stands at R$35.3B. Fundamentals as of Jul 19, 2026

Our scenario range runs from R$20.90 (bear case) to R$51.56 (bull case); at R$27.39, 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 22% below its 52-week high and 40% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -30% fair-value upside, at 14%, SBSP3 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
Growth DCF R$20.21 R$40.54 R$74.25 80
Residual Income R$15.90 R$21.17 R$87.52 76
Rev-Margin DCF R$13.36 R$27.61 R$45.61 74
All 26 models by family
DCF Models
FCF DCF R$20.26 R$41.94 R$78.59 38
Owner Earnings R$28.46 R$56.28 R$103.31 31
5Y Revenue Exit R$13.36 R$27.75 R$46.79 39
5Y EBITDA Exit R$25.62 R$52.49 R$85.77 41
5Y P/E Exit R$23.11 R$47.42 R$74.74 38
10Y Revenue Exit R$14.84 R$29.14 R$50.05 36
10Y EBITDA Exit R$23.53 R$47.06 R$82.02 37
10Y P/E Exit R$21.88 R$43.39 R$72.98 35
Earnings-Based
Graham-Dodd R$16.41 R$70.50 R$96.34 54
Lynch FV R$18.06 R$25.80 R$33.53 50
PEG = 1.0 R$18.06 R$25.80 R$33.53 46
EPV R$15.91 R$20.00 R$23.58 59
Dividend Discount
Gordon GGM R$6.19 R$12.87 R$20.41 70
DDM Multi-Stage R$6.19 R$10.85 R$13.51 61
Multiples
P/E Multiple R$36.20 R$48.26 R$60.33 63
P/S Multiple R$20.37 R$27.16 R$33.94 58
P/B Multiple R$27.20 R$36.27 R$45.34 55
EV/EBIT R$38.63 R$54.39 R$70.14 53
EV/EBITDA R$31.65 R$45.07 R$58.50 54
EV/Revenue R$10.38 R$18.53 R$26.67 43
Asset-Based
NCAV (Graham) R$6.05 R$8.10 R$12.09 50
Growth DCF
Growth DCF R$20.21 R$40.54 R$74.25 80
Rev-Margin DCF R$13.36 R$27.61 R$45.61 74
Economic Profit
Residual Income R$15.90 R$21.17 R$87.52 76
ROIC Compounder R$17.52 R$26.64 R$39.39 72
Growth Earnings
Growth-Adj P/E R$29.40 R$42.00 R$54.61 68

Widest divergence: DCF Models (R$43.39) versus Asset-Based (R$8.10). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) R$39.6B
Revenue growth (YoY) +18.3%
Net margin 22.0%
Return on equity 21.2%
Free cash flow R$8.1B FY2025
P/E ratio 10.8
More key figures
Operating margin 33.9%
EPS (TTM) R$2.54
Dividend yield 2.4%
EPS growth (YoY) +15.4%
Net debt R$35.3B FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 52 · Market factors (momentum, volatility) 62

Profitability 52
Margins and returns on capital today
Quality Growth 10
Are margins and returns improving?
Cashflow 74
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 40
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 60
Distance to the 52-week high (market factor)
Net Issuance 81
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 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. Companhia de Saneamento Básico do Estado de São Paulo - SABESP was founded in 1954 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

SBSP3 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.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
R$38.1B
Latest YoY
+5.4%
Avg. growth/yr (3Y)
+20.0%
Avg. growth/yr (5Y)
+16.4%
Avg. growth/yr (25Y)
+10.2%
Revenue +18.2%/yr
FY21 R$19.5B
FY22 R$22.1B
FY23 R$25.6B
FY24 R$36.1B
FY25 R$38.1B
Net income +38.4%/yr
FY21 R$2.3B
FY22 R$3.1B
FY23 R$3.5B
FY24 R$9.6B
FY25 R$8.5B

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Cite: Fair Value Calculator (2026). "SBSP3 Fair Value". https://www.fairvalue-calculator.com/stock/SBSP3

Peer Group

Utilities - Regulated Water · 67 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 57 · Top 25%
Fair Value upside +14% · Above median
Return on equity (TTM) 21% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 34% · Top 25%
Revenue growth 18% · Top 25%
Dividend yield (TTM) 2.3% · Below median
Debt / equity 0.82× · Higher than median

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

P/E (TTM) 11.5× · Cheaper than 75% of peers
P/B 2.42× · Pricier than 75% of peers
P/S (TTM) 2.59× · Pricier than median
P/FCF 2.5× · Pricier than median
EV/EBITDA 8.7× · Cheaper than median
PEG 0.49× · Cheaper than 75% of peers

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 52 · sector 1
FUTURE 92 · sector 28
PAST 85 · sector 29
HEALTH 59 · sector 66
DIVIDEND 45 · sector 49

Insider activity: 42/100

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 - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $134.33 $65.80 -51%
SBS SBS $5.79 $5.21 -10%
Essential Utilities, Inc WTRG $38.59 $21.81 -43%
CSMG3 CSMG3 R$66.10 R$60.17 -9%
Grandblue Environment Co 600323 ¥29.42 ¥33.29 +13%
American States Water Company AWR $85.01 $48.02 -44%
Chengdu Xingrong Environment Co 000598 ¥6.97 ¥10.74 +54%
California Water Service Group CWT $49.73 $33.56 -33%
Chongqing Water Group 601158 ¥4.08 ¥2.86 -30%
H2O America, through its subsidiaries, HTO $62.47 $41.30 -34%

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Frequently asked questions

Is SBSP3 overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of R$31.23 versus a price of R$27.39, about +14% (undervalued).
What is the fair value of SBSP3?
Our model-based fair value for SBSP3 is R$31.23 (as of Jul 19, 2026), built from audited fundamentals. The current price is R$27.39.
What is the quality score of SBSP3?
SBSP3 has a Quality Score of 57/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of SBSP3?
SBSP3 reported trailing-twelve-month revenue of about R$39.6B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of SBSP3?
The net profit margin of SBSP3 is about 22.0%, meaning it keeps roughly 22.0% of revenue as net income. Based on the latest reported figures.
Does SBSP3 pay a dividend?
SBSP3 currently shows a dividend yield of about 2.44% relative to its recent price (as of Jul 19, 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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