SBS Stock Analysis: Buy, Sell, or Hold?
SBS - COMPANHIA DE SANEAMENTO B SICO DO ESTADO DE SAO PAULO-SABESP ADS'S
$5.57
0.11 (1.92%)
▲
5d:
+4.61%
30d:
-6.16%
90d:
-80.01%
BUY
HIGH Confidence
Analysis Updated: Jun 12, 2026 12:00 AM ET
Earnings: May 11, 2026
0d
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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 -6.6% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: SBS trading at deep discount. Market pricing in -6.6% 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
$13.05
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$8.11
31.3% 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 12.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: SBS is currently trading at $5.57, which is considered fair relative to its 30-day fair value range of $5.40 to $5.98. From a valuation perspective, the stock is trading at a discount (Forward PE: 9.9) compared to its historical average (12.1). Remarkably, the market is currently pricing in an annual earnings decline of 6.6% 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 (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 (+25.3%). 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 (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 (+25.3%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$5.40 -
$5.98
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
83.3%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 25.3% below Wall St target ($6.84)
Trading Range Analysis
30-Day Trading Range
$5.40 -
$5.98
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.)
9.86
Wall Street Target
$6.84
(+25.3%)
Revenue Growth (YoY)
18.3%
Earnings Growth (YoY)
15.4%
Profit Margin
22.0%
Valuation Discount vs History
-6.6% cheaper
PE vs Historical
9.9 vs 12.1
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-6.6%
(market-implied from PE analysis)
1-Year Target
$5.10
(-7%)
2-Year Target
$4.76
(-13%)
3-Year Target
$4.45
(-19%)
3-Yr Target (if PE normalizes)
(PE: 10→12)
$5.46
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.9, Growth: 45.9%)
$37.72
(+591%)
Base:
(SPY PE: 9.9, Growth: 45.9%)
$16.96
(+211%)
Bear:
(PE: 8.4, Growth: 45.9%)
$14.42
(+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: 11.16 | Current EPS (TTM): $0.49
Bull Case
$6.80
(+25%)
Analyst growth 13.1%, PE expands to 12.3
Base Case
$6.18
(+13%)
Market implied 13.1%, PE stable at 11.2
Bear Case
$3.72
(-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 9.9 to 12.1
Stabilization Target:
$6.70
(+22.8%)
PE Expansion Potential:
+22.8%
Share & Embed Analysis
Last updated: June 15, 2026 12:00 PM ET
Data refreshes hourly during market hours. Next update: 1:00 PM
Data refreshes hourly during market hours. Next update: 1:00 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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