Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR)

From Warp Investor: If we use 1% as our estimate of earnings growth for the next 5 years, which is the expected growth rate for the Brazilian economy, our sim-based analysis results suggest the following fair values – stock price: $8.02, and price-to-earnings ratio: 7.54. At the time of this writing, EBR trades at $7.11, so it appears to be undervalued, with a potential upside of 12.80%. If we use 10% as our estimate of earnings growth for the next 5 years, which seems more reasonable given a likely increase in electricity demand and the possible sale of carbon credits, then a new sim-based analysis suggests the following fair values – stock price: $12.67, and price-to-earnings ratio: 11.92. With these numbers, the potential upside moves up to 78.20%.