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Equatorial Energia SA
BOVESPA:EQTL3

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Equatorial Energia SA
BOVESPA:EQTL3
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Price: 42.32 BRL 1.49% Market Closed
Market Cap: R$53.3B

EV/IC

1
Current
25%
More Expensive
vs 3-y average of 0.8

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1
=
Enterprise Value
R$94.8B
/
Invested Capital
R$93.7B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1
=
Enterprise Value
R$94.8B
/
Invested Capital
R$93.7B

Valuation Scenarios

Equatorial Energia SA is trading above its 3-year average

If EV/IC returns to its 3-Year Average (0.8), the stock would be worth R$33.97 (20% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-22%
Maximum Upside
No Upside Scenarios
Average Downside
21%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 1 R$42.32
0%
3-Year Average 0.8 R$33.97
-20%
5-Year Average 0.8 R$33.97
-20%
Industry Average 0.8 R$33.19
-22%
Country Average 0.8 R$33.19
-22%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
BR
Equatorial Energia SA
BOVESPA:EQTL3
53.2B BRL 1 31.1
US
Nextera Energy Inc
NYSE:NEE
202.1B USD 1.4 24.7
ES
Iberdrola SA
MAD:IBE
128.3B EUR 1.1 20.6
IT
Enel SpA
MIL:ENEL
99.6B EUR 1 23.7
US
Constellation Energy Corp
NASDAQ:CEG
111.5B USD 2.4 41.5
US
Southern Co
NYSE:SO
106.3B USD 1.2 24.5
US
Duke Energy Corp
NYSE:DUK
100.1B USD 1 20.4
US
American Electric Power Company Inc
NASDAQ:AEP
74B USD 1.1 20.7
FR
Electricite de France SA
PAR:EDF
46.6B EUR 0.2 -2.5
US
Entergy Corp
NYSE:ETR
52.7B USD 1.2 30
US
Xcel Energy Inc
NASDAQ:XEL
51.5B USD 1.1 24.6

Market Distribution

In line with most companies in Brazil
Percentile
67th
Based on 496 companies
67th percentile
1
Low
0 — 0.6
Typical Range
0.6 — 1
High
1 —
Distribution Statistics
Brazil
Min 0
30th Percentile 0.6
Median 0.8
70th Percentile 1
Max 36.6

Equatorial Energia SA
Glance View

Market Cap
53.3B BRL
Industry
Utilities

Equatorial Energia SA has gradually emerged as a pivotal player within Brazil's energy sector, navigating the challenging and dynamic landscape with dexterity. With its origin dating back to 1999, the company has evolved from a regional electricity distributor to a formidable force in the national market. At the heart of its operations, Equatorial Energia specializes in the distribution, generation, and sale of electricity, serving millions of customers primarily in Brazil's North and Northeast regions. The company capitalizes on Brazil's vast natural resources and energy demand, executing a strategy that combines robust infrastructure development with technological advancements to streamline efficiency and enhance grid reliability. The company's business model thrives on the delicate balance of regulated distribution and expanding into liberalized energy markets. Equatorial Energia generates revenue by transporting electricity from producers to consumers, earning a regulated return on its investment in the transmission and distribution infrastructure. Additionally, its foray into the generation sector, including investments in wind and solar power projects, positions the company to capitalize on Brazil's renewable energy agenda. Through strategic acquisitions and continuous investment in technology and customer service, Equatorial Energia not only mitigates operational risks but also establishes itself as a sustainable and reliable cornerstone of Brazil's energy future.

EQTL3 Intrinsic Value
45.61 BRL
Undervaluation 7%
Intrinsic Value
Price R$42.32
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