SBS Relative Valuation
SBS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SBS is overvalued; if below, it's undervalued.
Historical Valuation
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) is now in the Fair zone, suggesting that its current forward PE ratio of 14.26 is considered Fairly compared with the five-year average of 11.00. The fair price of Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) is between 21.99 to 27.46 according to relative valuation methord.
Relative Value
Fair Zone
21.99-27.46
Current Price：26.95
Fair
13.96
PE
1Y
3Y
5Y
Trailing
Forward
7.89
EV/EBITDA
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP. (SBS) has a current EV/EBITDA of 7.89. The 5-year average EV/EBITDA is 6.14. The thresholds are as follows: Strongly Undervalued below 4.68, Undervalued between 4.68 and 5.41, Fairly Valued between 6.87 and 5.41, Overvalued between 6.87 and 7.60, and Strongly Overvalued above 7.60. The current Forward EV/EBITDA of 7.89 falls within the Strongly Overvalued range.
8.88
EV/EBIT
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP. (SBS) has a current EV/EBIT of 8.88. The 5-year average EV/EBIT is 8.24. The thresholds are as follows: Strongly Undervalued below 6.76, Undervalued between 6.76 and 7.50, Fairly Valued between 8.99 and 7.50, Overvalued between 8.99 and 9.73, and Strongly Overvalued above 9.73. The current Forward EV/EBIT of 8.88 falls within the Historic Trend Line -Fairly Valued range.
3.73
PS
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP. (SBS) has a current PS of 3.73. The 5-year average PS is 1.91. The thresholds are as follows: Strongly Undervalued below 0.74, Undervalued between 0.74 and 1.33, Fairly Valued between 2.50 and 1.33, Overvalued between 2.50 and 3.09, and Strongly Overvalued above 3.09. The current Forward PS of 3.73 falls within the Strongly Overvalued range.
11.15
P/OCF
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP. (SBS) has a current P/OCF of 11.15. The 5-year average P/OCF is 7.13. The thresholds are as follows: Strongly Undervalued below 3.99, Undervalued between 3.99 and 5.56, Fairly Valued between 8.69 and 5.56, Overvalued between 8.69 and 10.26, and Strongly Overvalued above 10.26. The current Forward P/OCF of 11.15 falls within the Strongly Overvalued range.
-29.45
P/FCF
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP. (SBS) has a current P/FCF of -29.45. The 5-year average P/FCF is 12.82. The thresholds are as follows: Strongly Undervalued below -99.10, Undervalued between -99.10 and -43.14, Fairly Valued between 68.78 and -43.14, Overvalued between 68.78 and 124.74, and Strongly Overvalued above 124.74. The current Forward P/FCF of -29.45 falls within the Historic Trend Line -Fairly Valued range.
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) has a current Price-to-Book (P/B) ratio of 2.27. Compared to its 3-year average P/B ratio of 1.70 , the current P/B ratio is approximately 33.38% higher. Relative to its 5-year average P/B ratio of 1.49, the current P/B ratio is about 52.16% higher. Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 9.80%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 11.67% , the current FCF yield is about -100.00% lower.
2.29
P/B
Median3y
1.70
Median5y
1.49
6.51
FCF Yield
Median3y
9.80
Median5y
11.67
Competitors Valuation Multiple
The average P/S ratio for SBS's competitors is , providing a benchmark for relative valuation. Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP Corp (SBS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -36.02%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SBS increased by 87.58% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 5.06 to 13.54.
The secondary factor is the Revenue Growth, contributed -36.02%to the performance.
Overall, the performance of SBS in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
Is Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) currently overvalued or undervalued?
What is Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) fair value?
How does SBS's valuation metrics compare to the industry average?
What is the current P/B ratio for Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) as of Dec 05 2025?
What is the current FCF Yield for Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) as of Dec 05 2025?
What is the current Forward P/E ratio for Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) as of Dec 05 2025?