SBS Stock Analysis: Buy, Sell, or Hold?
SBS - COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S
$5.38
0.12 (2.28%)
▲
5d:
+3.86%
30d:
+5.7%
90d:
-7.4%
WAIT
LOW Confidence
Analysis Updated: Oct 2, 2026 12:00 AM ET
Earnings: Nov 09, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 MIXED SIGNALS: SBS shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: SBS shows conflicting indicators. Wait for confirmation before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$9.67
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$6.01
10.4% 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 11.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SBS is currently trading at $5.38, which is considered extended relative to its 30-day fair value range of $4.94 to $5.34. The stock's valuation (Forward PE: 12.4) is in line with its historical norms (11.5). At these levels, the market is pricing in 2.7% annual earnings growth.
Technical Outlook: Technically, SBS is in a downtrend. The price is approaching resistance at $5.48. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock scores a mixed 41/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $6.74 (+25.2%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, SBS is in a downtrend. The price is approaching resistance at $5.48. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock scores a mixed 41/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $6.74 (+25.2%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$4.94 -
$5.34
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
54.3%
All Signals
- BEARISH: Price extended above range
- NEUTRAL: Mixed technical signals (41/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 25.2% below Wall St target ($6.74)
- BULLISH: Expecting earnings turnaround to 2.7% growth with 13.9% revenue growth
- WARNING: Composite score 52/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$4.94 -
$5.34
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$5.07
Resistance Level
$5.48
Current Trend
Downtrend
Technical data as of
Oct 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
12.45
Wall Street Target
$6.74
(+25.2%)
Revenue Growth (YoY)
13.9%
Earnings Growth (YoY)
-33.9%
Profit Margin
19.7%
Valuation Premium vs History
+2.7% premium
PE vs Historical
12.5 vs 11.5
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.7%
(market-implied from PE analysis)
1-Year Target
$5.53
(+3%)
2-Year Target
$5.67
(+6%)
3-Year Target
$5.83
(+8%)
3-Yr Target (if PE normalizes)
(PE: 12→12)
PE COMPRESSION
$5.38
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.4, Growth: 27.7%)
$18.35
(+241%)
Base:
(SPY PE: 12.5, Growth: 27.7%)
$11.20
(+108%)
Bear:
(PE: 10.6, Growth: 27.7%)
$9.52
(+77%)
📈
Valuation based on Current Earnings
Trailing PE: 11.43 | Current EPS (TTM): $0.46
Bull Case
$5.43
(+1%)
Analyst growth -6.1%, PE expands to 12.6
Base Case
$4.94
(-8%)
Market implied -6.1%, PE stable at 11.4
Bear Case
$3.58
(-34%)
Severe decline -20.0%, PE contracts to 9.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: October 03, 2026 9:59 AM ET
Data refreshes hourly during market hours. Next update: 10:59 AM
Data refreshes hourly during market hours. Next update: 10:59 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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