Equatorial Energia SA
BOVESPA:EQTL3
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EV/IC
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.
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.
Valuation Scenarios
If EV/IC returns to its 3-Year Average (0.8), the stock would be worth R$33.97 (20% downside from current price).
| Scenario | EV/IC Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 1 | R$42.32 |
0%
|
| 3-Year Average | 0.8 | R$33.97 |
-20%
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| 5-Year Average | 0.8 | R$33.97 |
-20%
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| 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
Peer Comparison
| 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
| Min | 0 |
| 30th Percentile | 0.6 |
| Median | 0.8 |
| 70th Percentile | 1 |
| Max | 36.6 |
Other Multiples
Equatorial Energia SA
Glance View
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.