Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP

Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) Stock Analysis

$6.260

-0.156 (-2.49%)At close

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High
6.340
Open
6.220
VWAP
6.27
Volume
10.15M
Mkt Cap
9.24B
Low
6.195
Amount
63.62M
EV/EBITDA, TTM
5.83

Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP is a water and sewage service provider. The Company provides water and sewage services to a range of residential, commercial, industrial and governmental customers in over 375 municipalities in the state of Sao Paulo, including the city of Sao Paulo. The Company's segments include Water and Sewage. The Company's activities comprise water supply, sanitary sewage services, urban rainwater management and drainage services, urban cleaning services, solid waste management services and related activities, including the planning, operation, maintenance and commercialization of energy, and the commercialization of services, products, benefits and rights that directly or indirectly arise from its assets, operations and activities.

AI analysis of Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS)

Buy

SABESP (SBS) is a good buy right now due to its strong revenue growth and favorable valuation metrics. The current price is $6.74, with a significant gross margin of 37.30% in Q2 2026, and a remarkable 25.28% increase in the last 5 days, indicating strong momentum. However, the main risk is the 235.84% increase in hedge fund selling activity over the last quarter, which could indicate a potential downturn.

Analyst Ratings (2)

+357.67% upside
Buy
1 Buy
1 Hold
0 Sell
Current: 6.26
Low
28.65
Average
28.65
High
28.65

Jefferies

2026-03-19

Price Target

$36.60

Buy

Goldman Sachs

2025-11-24

Price Target

—

Buy

Valuation Metrics

The current forward P/E ratio for Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) is 11.52, compared to its 5-year average forward P/E of 11.91.

Forward P/E

Fair
5Y Average P/E
11.91
Current P/E
11.52
Overvalued
13.93
Undervalued
9.89

Forward EV/EBITDA

Fair
5Y Average EV/EBITDA
6.15
Current EV/EBITDA
5.83
Overvalued
7.08
Undervalued
5.23

Forward P/S

Undervalued
5Y Average P/S
1.83
Current P/S
0.75
Overvalued
2.61
Undervalued
1.05

Alphio AI Price Scenarios for SBS

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%SBS

$25.46

Scenario price

B

Base

Base · 50%SBS

$23.70

Scenario price

B

Bear

Bear · 25%SBS

$17.65

Scenario price

Whales holding SBS

P

PPLA Participations Ltd.

+ HoldingSBS

+22.87%

3M Return

I

Itau USA Asset Management Inc.

+ HoldingSBS

+9.99%

3M Return

C

Caixa Econômica Federal

+ HoldingSBS

+9.70%

3M Return

L

LarrainVial Asset Management Administradora General de Fondos SA

+ HoldingSBS

+4.56%

3M Return

P

Pictet Asset Management Limited

+ HoldingSBS

+4.47%

3M Return

L

Letko, Brosseau & Associates Inc.

+ HoldingSBS

+3.87%

3M Return

SBS FAQ — answered by Alphio AI

Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP is a water and sewage service provider. The Company provides water and sewage services to a range of residential, commercial, industrial and governmental customers in over 375 municipalities in the state of Sao Paulo, including the city of Sao Paulo. The Company's segments include Water and Sewage. The Company's activities comprise water supply, sanitary sewage services, urban rainwater management and drainage services, urban cleaning services, solid waste management services and related activities, including the planning, operation, maintenance and commercialization of energy, and the commercialization of services, products, benefits and rights that directly or indirectly arise from its assets, operations and activities. It operates in the Utilities sector.

SABESP (SBS) is a good buy right now due to its strong revenue growth and favorable valuation metrics. The current price is $6.74, with a significant gross margin of 37.30% in Q2 2026, and a remarkable 25.28% increase in the last 5 days, indicating strong momentum. However, the main risk is the 235.84% increase in hedge fund selling activity over the last quarter, which could indicate a potential downturn.

2 analysts cover SBS: 1 rate it Buy, 1 Hold and 0 Sell. The average price target is 28.65.

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This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

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