SBS Stock Analysis: Buy, Sell, or Hold?
SBS - COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S
$26.86
-0.22 (-0.81%)
▼
BUY
MODERATE Confidence
Last Updated: January 30, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: SBS shows positive signals but monitor for confirmation. Market pricing in 2.2% growth. Moderate conviction.
💡 BUY OPPORTUNITY: SBS shows positive signals but monitor for confirmation. Market pricing in 2.2% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$32.15
Based on 4.9% avg growth
INTRINSIC VALUE TODAY
$19.96
Trading above fair value
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 13.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SBS is currently trading at $26.86, which is considered extended relative to its 30-day fair value range of $23.46 to $26.08. The stock's valuation (Forward PE: 14.6) is in line with its historical norms (13.7). At these levels, the market is pricing in 2.2% annual earnings growth.
Technical Outlook: Technically, SBS is in a uptrend. The price is approaching resistance at $27.48. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: SBS has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, SBS is in a uptrend. The price is approaching resistance at $27.48. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: SBS has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$23.46 -
$26.08
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($29.62)
- BULLISH: Expecting earnings turnaround to 2.2% growth with -37.2% revenue growth
Fair Price Analysis
30-Day Fair Range
$23.46 -
$26.08
Current vs Fair Value
EXTENDED
Support & Resistance Levels
Support Level
$22.54
Resistance Level
$27.48
Current Trend
Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
14.62
Wall Street Target
$29.63
(+9.4%)
Revenue Growth (YoY)
-37.2%
Earnings Growth (YoY)
-64.7%
Profit Margin
20.8%
Valuation Premium vs History
+2.2% premium
PE vs Historical
14.6 vs 13.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.2%
(market-implied from PE analysis)
1-Year Target
$27.68
(+2%)
2-Year Target
$28.28
(+4%)
3-Year Target
$28.91
(+7%)
3-Yr Target (if PE normalizes)
(PE: 15→14)
PE COMPRESSION
$27.08
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 5.7%)
$48.80
(+80%)
Base:
(SPY PE: 14.6, Growth: 5.7%)
$32.00
(+18%)
Bear:
(PE: 12.4, Growth: 5.7%)
$27.20
(+0%)
📈
Valuation based on Current Earnings
Trailing PE: 13.77 | Current EPS (TTM): $1.98
Bull Case
$28.05
(+4%)
Analyst growth -6.5%, PE expands to 15.1
Base Case
$25.50
(-5%)
Market implied -6.5%, PE stable at 13.8
Bear Case
$18.54
(-31%)
Severe decline -20.0%, PE contracts to 11.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 30, 2026 7:33 PM ET
Data refreshes hourly during market hours. Next update: 8:33 PM
Data refreshes hourly during market hours. Next update: 8:33 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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