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Basic Sanitation Company of the State of Sao Paulo SABESP
SWB:SAJA

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Basic Sanitation Company of the State of Sao Paulo SABESP
SWB:SAJA
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Price: 28 EUR 6.87%
Market Cap: €8.3B

EV/FCFF

-12.7
Current
14%
More Expensive
vs 3-y average of -11.1

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
-12.7
=
Enterprise Value
€11.6B
/
Free Cash Flow to Firm
R$-5.4B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
-12.7
=
Enterprise Value
€11.6B
/
Free Cash Flow to Firm
R$-5.4B

Valuation Scenarios

Basic Sanitation Company of the State of Sao Paulo SABESP is trading above its 5-year average

If EV/FCFF returns to its 5-Year Average (16), the stock would be worth €-35.38 (226% downside from current price).

Statistics
Positive Scenarios
0/3
Maximum Downside
-226%
Maximum Upside
No Upside Scenarios
Average Downside
218%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple -12.7 €28
0%
5-Year Average 16 €-35.38
-226%
Industry Average 15.4 €-33.99
-221%
Country Average 13.4 €-29.59
-206%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close

Market Distribution

Lower than 100% of companies in Brazil
Percentile
0th
Based on 365 companies
0th percentile
-12.7
Low
0.2 — 8.2
Typical Range
8.2 — 24.4
High
24.4 —
Distribution Statistics
Brazil
Min 0.2
30th Percentile 8.2
Median 13.4
70th Percentile 24.4
Max 1 667.2

Basic Sanitation Company of the State of Sao Paulo SABESP
Glance View

Market Cap
8.3B EUR
Industry
Utilities

In the bustling state of São Paulo, SABESP, or Companhia de Saneamento Básico do Estado de São Paulo, stands as a vital pillar in the realm of public utility. Established in the 1970s, it has deeply intertwined itself with the state’s infrastructure and daily life by managing water supply and sewage services for millions of residents. SABESP operates with a business model that rests firmly on the provision and maintenance of essential services. It draws water from extensive natural sources, treating and transporting it through a sprawling network, ensuring that both urban and rural locales have access to clean and safe water. This intricate process not only highlights the complexity of its operations but underscores its commitment to elevating the living conditions within its reach. The company's prowess in efficiently delivering these services has allowed it to become a publically traded entity, thus positioning itself as both a steward of public health and a key player in the economic fabric of the region. Revenue generation for SABESP is predominantly guided by the fees collected from its extensive customer base, ranging from residential users to industrial consumers. The rates charged for its services are closely regulated, ensuring they are both fair and capable of maintaining the company's vast infrastructure. Despite operating within a framework that emphasizes public welfare, SABESP balances its social mandate with business acumen, seeking to optimize its operations and extend its reach. This balance is pivotal as it navigates challenges like urbanization and environmental sustainability, allowing the company to not only supply water and manage waste but also to reinvest in technological advancements and infrastructure improvements. Ultimately, as SABESP continues to grow, it remains a quintessential example of how utility companies can sustain profitability while advancing public health objectives.

SAJA Intrinsic Value
45.33 EUR
Undervaluation 38%
Intrinsic Value
Price €28
B
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