SBS Stock Analysis: Buy, Sell, or Hold?
SBS - COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S
$6.40
0.13 (2.07%)
â˛
5d:
+2.24%
30d:
+24.27%
90d:
+12.68%
WAIT
LOW Confidence
Analysis Updated: Oct 23, 2026 12:00 AM ET
Earnings: Nov 09, 2026
15d
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: SBS is fairly priced but lacks strong directional signals. At 8.1% expected growth, valuation appears stretched. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: SBS is fairly priced but lacks strong directional signals. At 8.1% expected growth, valuation appears stretched. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$9.84
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$6.11
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 11.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SBS is currently trading at $6.40, which is considered slightly high relative to its 30-day fair value range of $5.25 to $6.43. From a valuation perspective, the stock is trading at a premium (Forward PE: 14.8) compared to its historical average (11.7). At these levels, the market is pricing in 8.1% annual earnings growth.
Technical Outlook: Technically, SBS is in a uptrend. Immediate support is located at $6.20, while resistance sits at $6.74.
Market Sentiment: SBS scores 0/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, SBS is in a uptrend. Immediate support is located at $6.20, while resistance sits at $6.74.
Market Sentiment: SBS scores 0/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$5.25 -
$6.43
Company Quality Score
33/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
41.4%
All Signals
- BEARISH: Weak technical setup (0/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($6.66)
- BULLISH: Expecting earnings turnaround to 8.1% growth with 13.9% revenue growth
- WARNING: Composite score 33/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$5.25 -
$6.43
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$6.20
Resistance Level
$6.74
Current Trend
Uptrend
Technical data as of
Oct 23, 2026
Fundamental Context
Forward P/E (Next Year Est.)
14.81
Wall Street Target
$6.66
(+4.1%)
Revenue Growth (YoY)
13.9%
Earnings Growth (YoY)
-33.9%
Profit Margin
19.7%
Valuation Premium vs History
+8.1% premium
PE vs Historical
14.8 vs 11.7
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+8.1%
(market-implied from PE analysis)
1-Year Target
$6.92
(+8%)
2-Year Target
$7.48
(+17%)
3-Year Target
$8.08
(+26%)
3-Yr Target (if PE normalizes)
(PE: 15â12)
PE COMPRESSION
$6.38
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 27.7%)
$17.87
(+179%)
Base:
(SPY PE: 14.8, Growth: 27.7%)
$13.33
(+108%)
Bear:
(PE: 11.7, Growth: 27.7%)
$10.52
(+65%)
đ
Valuation based on Current Earnings
Trailing PE: 14.25 | Current EPS (TTM): $0.44
Bull Case
$6.77
(+6%)
Analyst growth -1.8%, PE expands to 15.7
Base Case
$6.16
(-4%)
Market implied -1.8%, PE stable at 14.3
Bear Case
$4.26
(-33%)
Severe decline -20.0%, PE contracts to 12.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: October 23, 2026 7:26 PM ET
Data refreshes hourly during market hours. Next update: 8:26 PM
Data refreshes hourly during market hours. Next update: 8:26 PM
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Technical Signals Check
Is SBS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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