SBS Stock Analysis: Buy, Sell, or Hold?
SBS - COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S
$5.43
-0.02 (-0.37%)
▼
5d:
-4.4%
30d:
-5.57%
90d:
-83.69%
BUY
HIGH Confidence
Analysis Updated: Jul 31, 2026 12:00 AM ET
Earnings: Aug 10, 2026
5d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: SBS trading at deep discount. Market pricing in -5.7% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: SBS trading at deep discount. Market pricing in -5.7% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$12.62
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$7.84
30.7% Margin of Safety
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 $5.43, which is considered oversold relative to its 30-day fair value range of $5.54 to $5.89. From a valuation perspective, the stock is trading at a discount (Forward PE: 9.8) compared to its historical average (11.7). Remarkably, the market is currently pricing in an annual earnings decline of 5.7% over the next few years. This pessimistic expectation contrasts with the company's recent 15.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SBS is in a strong downtrend. Immediate support is located at $5.24, while resistance sits at $5.86.
Market Sentiment: SBS has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $6.84 (+26.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SBS is in a strong downtrend. Immediate support is located at $5.24, while resistance sits at $5.86.
Market Sentiment: SBS has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $6.84 (+26.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$5.54 -
$5.89
Company Quality Score
46/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
90.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 26.0% below Wall St target ($6.84)
Trading Range Analysis
30-Day Trading Range
$5.54 -
$5.89
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$5.24
Resistance Level
$5.86
Current Trend
Strong Downtrend
Technical data as of
Aug 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.80
Wall Street Target
$6.84
(+26.0%)
Revenue Growth (YoY)
18.3%
Earnings Growth (YoY)
15.4%
Profit Margin
22.0%
Valuation Discount vs History
-5.7% cheaper
PE vs Historical
9.8 vs 11.7
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.7%
(market-implied from PE analysis)
1-Year Target
$5.12
(-6%)
2-Year Target
$4.83
(-11%)
3-Year Target
$4.55
(-16%)
3-Yr Target (if PE normalizes)
(PE: 10→12)
$5.44
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.7, Growth: 49.3%)
$38.21
(+604%)
Base:
(SPY PE: 9.8, Growth: 49.3%)
$18.07
(+233%)
Bear:
(PE: 8.3, Growth: 49.3%)
$15.36
(+183%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (11x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Trailing PE: 11.12 | Current EPS (TTM): $0.49
Bull Case
$6.78
(+25%)
Analyst growth 13.1%, PE expands to 12.2
Base Case
$6.16
(+14%)
Market implied 13.1%, PE stable at 11.1
Bear Case
$3.71
(-32%)
Severe decline -20.0%, PE contracts to 9.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 9.8 to 11.7
Stabilization Target:
$6.48
(+19.4%)
PE Expansion Potential:
+19.4%
Share & Embed Analysis
Last updated: August 03, 2026 7:54 PM ET
Data refreshes hourly during market hours. Next update: 8:54 PM
Data refreshes hourly during market hours. Next update: 8:54 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
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