SBSP3.SA · Intrinsic value
Is Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) overvalued or undervalued?
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) trades at the delayed market price of R$32.22 a share. That price already implies revenue growth of −1.2% a year for 5 years. TickerWorth's fair value is R$33.62 a share (priced within our range of R$21.13 – R$44.03). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is SBSP3.SA fairly valued?
- Fair value
- R$33.62
- Market price
- R$32.22
- Upside to fair value
- +4.3%
- Verdict
- Priced within our range of R$21.13 – R$44.03
Reverse DCF: Today's price implies revenue growth of −1.2% a year for 5 years; our model assumes 8.9% a year on average over the same horizon.
What is SBSP3.SA's TickerWorth Score?
Scores higher than almost every company we compare it with
Compared with Utilities companies in Latin America
Its strongest point: strong balance sheet. Its weakest: growth is slow or negative.
- Value · 58 of 100
Cheaper than 58% of Utilities companies worldwide
- Price vs worth · 54 of 100
- Quality · 70 of 100
More profitable than 70% of Utilities companies worldwide
- Financial health · 86 of 100
Financially stronger than 86% of Utilities companies worldwide
- Growth · 38 of 100
Growing faster than 38% of Utilities companies worldwide
- Momentum · 76 of 100
Outperformed 76% of Utilities companies worldwide over the past year
Confidence: High confidence · Scored
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SBSP3.SA DCF valuation, input by input
TickerWorth's fair value for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) is R$33.62 a share, against the delayed market price of R$32.22 (priced within our range of R$21.13 – R$44.03). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values SBSP3.SA at about 55.70 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Companhia de Saneamento Básico do Estado de São Paulo - SABESP's projected free cash flows at a weighted-average cost of capital (WACC) of 8.5%, with a long-run terminal growth rate of 2.5%. About 77% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -1.2% annual revenue growth for SBSP3.SA. Our base case instead compounds to about 8.9% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, SBSP3.SA's modeled DCF value ranges from about 37.71 to 99.01 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Companhia de Saneamento Básico do Estado de São Paulo - SABESP would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of SBSP3.SA's intrinsic value. Figures update as new filings and prices come in.
Every input behind SBSP3.SA's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | 40,875,070,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 31.5% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 14% → 11% → 9% → 6% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.00 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 3,517M |
| Market priceLive feed — delayed quote · as of 2026-10-19T19:28:42+00:00 | 32.07 |
Change SBSP3.SA's assumptions
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What does Companhia de Saneamento Básico do Estado de São Paulo - SABESP do?
What does it do?
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. It operates in the Utilities - Regulated Water industry (Utilities sector), headquartered in Brazil. The company employs roughly 8,914 people.
How does it make money?
The business turns 40.9B in annual revenue into profit. Out of every $100 of sales, about $32 is left as operating profit (operating margin of 31.5%), after a 36% gross margin on the products/services it sells. After all costs, taxes and interest, 19.7% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries moderate debt (1.1× equity), can just cover its short-term bills (1.5× current ratio), and is currently profitable.
SBSP3.SA insider trading
Insider filings are available for US-listed companies only.
Common questions
What is SBSP3.SA's intrinsic value?
TickerWorth's blended fair value for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) is R$33.62 per share, versus a market price of R$32.22 (priced within our range of R$21.13 – R$44.03).
Is SBSP3.SA overvalued or undervalued?
Priced within our range of R$21.13 – R$44.03 at R$32.22. We don't call SBSP3.SA overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for SBSP3.SA?
A WACC of 8.5% and a terminal growth rate of 2.5%.
Is Companhia de Saneamento Básico do Estado de São Paulo - SABESP stock undervalued?
TickerWorth's fair value for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) is R$33.62 against a market price of R$32.22. Our read: Priced within our range of R$21.13 – R$44.03. This is a model estimate, not investment advice.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) DCF valuation and fair value
Our fair value for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) is R$33.62, built on a 8.5% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Companhia de Saneamento Básico do Estado de São Paulo - SABESP stock?
Today's price implies revenue growth of −1.2% a year for 5 years; our model assumes 8.9% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of R$32.22. A model estimate, not investment advice.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA) insider trading
We have no recent SEC Form 4 insider filings on file for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBSP3.SA). Form 4 covers US-listed companies only.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.