SBS Stock Analysis: Buy, Sell, or Hold?
SBS - COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S
$5.48
0.06 (1.11%)
▲
5d:
-1.62%
30d:
-4.03%
90d:
-81.19%
BUY
HIGH Confidence
Analysis Updated: Jun 23, 2026 12:00 AM ET
Earnings: Aug 10, 2026
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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 -6.2% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: SBS trading at deep discount. Market pricing in -6.2% 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
$12.95
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$8.04
31.8% 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 12.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SBS is currently trading at $5.48, which is considered fair relative to its 30-day fair value range of $5.37 to $5.69. From a valuation perspective, the stock is trading at a discount (Forward PE: 9.9) compared to its historical average (12.0). Remarkably, the market is currently pricing in an annual earnings decline of 6.2% 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 $5.25, while resistance sits at $5.78.
Market Sentiment: SBS has a strong technical setup (75/100), 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 (+24.8%). 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 $5.25, while resistance sits at $5.78.
Market Sentiment: SBS has a strong technical setup (75/100), 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 (+24.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$5.37 -
$5.69
Company Quality Score
60/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
83.3%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 24.8% below Wall St target ($6.84)
Trading Range Analysis
30-Day Trading Range
$5.37 -
$5.69
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$5.25
Resistance Level
$5.78
Current Trend
Strong Downtrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.89
Wall Street Target
$6.84
(+24.8%)
Revenue Growth (YoY)
18.3%
Earnings Growth (YoY)
15.4%
Profit Margin
22.0%
Valuation Discount vs History
-6.2% cheaper
PE vs Historical
9.9 vs 12.0
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-6.2%
(market-implied from PE analysis)
1-Year Target
$5.14
(-6%)
2-Year Target
$4.82
(-12%)
3-Year Target
$4.52
(-18%)
3-Yr Target (if PE normalizes)
(PE: 10→12)
$5.49
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 45.9%)
$37.48
(+584%)
Base:
(SPY PE: 9.9, Growth: 45.9%)
$17.02
(+211%)
Bear:
(PE: 8.4, Growth: 45.9%)
$14.47
(+164%)
📈
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: 11.06 | Current EPS (TTM): $0.49
Bull Case
$6.74
(+23%)
Analyst growth 13.1%, PE expands to 12.2
Base Case
$6.13
(+12%)
Market implied 13.1%, PE stable at 11.1
Bear Case
$3.69
(-33%)
Severe decline -20.0%, PE contracts to 9.4
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 9.9 to 12.0
Stabilization Target:
$6.65
(+21.3%)
PE Expansion Potential:
+21.3%
Share & Embed Analysis
Last updated: June 24, 2026 12:14 AM ET
Data refreshes hourly during market hours. Next update: 1:14 AM
Data refreshes hourly during market hours. Next update: 1:14 AM
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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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