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Centrais Elétricas Brasileiras S.A. - Eletrobrás (AXIA3) Fair Value & Analysis

Utilities · BR · Market cap R$120B (≈ $23.5B) · ISIN BRAXIAACNOR0

What is Centrais Elétricas Brasileiras S.A. - Eletrobrás really worth?

CE Centrais Elétricas Brasileiras S.A. - Eletrobrás AXIA3 · SA
PriceR$55.75
Fair ValueR$39.58
Upside−29.0%
Quality58/100

A solid business, but trading 41% above our fair value of R$39.58.

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Strengths

Highly profitable · 21.9% net margin
Moderate debt · generates free cash flow
Ranks above peers (13/15)

Risks

!Mixed Growth (revenue 5y +7.3 %/yr)
!Moderate moat 64/100
Evidence: High Range R$23.94 – R$52.89

Fair value as of: Aug 20, 2026

From 26 valuation models · updated 16 days ago

Share price +4.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (R$52.89). The favourable scenario is already priced in.
  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (R$23.94 to R$52.89) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

R$67.15 R$24.88 Fair Value R$39.58 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range R$24.88 – R$67.15 · fair‑value band R$23.94 – R$52.89 · the R$55.75 price screens above the R$39.58 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

Centrais Elétricas Brasileiras S.A. - Eletrobrás (AXIA3) currently trades at R$55.75, while our model-based Fair Value estimate is R$39.58, implying the stock looks roughly 40.8% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Utilities sector. Bull case: the Dividend Discount group reads highest at a median of R$77.80 per share, and 4 of the 26 models we run sit above the R$55.75 price. Bear case: the Earnings-Based group reads lowest at R$15.90, and 22 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Centrais Elétricas Brasileiras S.A. - Eletrobrás generated revenue of R$43.6B at a net margin of 21.9%. Revenue grew 22.1% year over year. It earns a return on equity of 7.9%. Net debt stands at R$60.8B. Fundamentals as of Aug 20, 2026

Our scenario range runs from R$23.94 (bear case) to R$52.89 (bull case); at R$55.75, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 18% below its 52-week high and 63% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −12% fair-value upside, at −29%, AXIA3 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly R$2.98 per share, which is 7.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF R$38.74 R$68.59 R$112.94 78
Growth DCF R$40.03 R$66.94 R$104.78 77
Residual Income R$40.93 R$42.29 R$42.21 76
All 26 models by family
DCF Models
FCF DCF R$38.74 R$68.59 R$112.94 78
Owner Earnings R$22.33 R$43.78 R$75.67 73
5Y Revenue Exit R$20.46 R$38.84 R$61.47 71
5Y EBITDA Exit R$27.84 R$52.38 R$80.17 73
5Y P/E Exit R$23.25 R$43.96 R$64.98 69
10Y Revenue Exit R$25.68 R$43.78 R$66.52 66
10Y EBITDA Exit R$31.30 R$53.08 R$80.54 67
10Y P/E Exit R$28.39 R$47.30 R$69.16 63
Earnings-Based
Graham-Dodd R$19.59 R$55.03 R$72.41 65
Lynch FV R$11.13 R$15.90 R$20.67 61
PEG = 1.0 R$11.13 R$15.90 R$20.67 57
EPV R$16.77 R$22.84 R$28.15 74
Dividend Discount
Gordon GGM R$49.14 R$102.18 R$162.09 66
DDM Multi-Stage R$49.14 R$77.80 R$107.24 66
Multiples
P/E Multiple R$38.89 R$51.85 R$64.81 63
P/S Multiple R$33.99 R$45.33 R$56.66 58
P/B Multiple R$36.73 R$48.97 R$61.21 55
EV/EBIT R$28.15 R$44.07 R$59.99 65
EV/EBITDA R$27.30 R$42.94 R$58.58 66
EV/Revenue R$12.11 R$25.71 R$39.30 51
Asset-Based
NCAV (Graham) R$26.01 R$34.85 R$52.01 54
Growth DCF
Growth DCF R$40.03 R$66.94 R$104.78 77
Rev-Margin DCF R$20.46 R$39.51 R$61.07 71
Economic Profit
Residual Income R$40.93 R$42.29 R$42.21 76
ROIC Compounder R$16.77 R$22.84 R$28.15 72
Growth Earnings
Growth-Adj P/E R$31.55 R$45.07 R$58.59 67

Widest divergence: Dividend Discount (R$77.80) versus Earnings-Based (R$15.90). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 12.7
P/S ratio 2.01 P/E × margin
EPS (TTM) R$4.40 price ÷ EPS = P/E 12.7
Dividend yield 10.7% payout 135%
Net margin 15.9% FY2025
Return on equity 7.9% TTM
More key figures
Profitability
Return on assets (EBIT) 4.3% avg 5y
Operating margin 43.5% TTM
Growth
Revenue (TTM) R$43.6B TTM
Revenue growth (YoY) +22.1% 3y avg +6.6%
EPS growth (YoY) +11.4%
Balance sheet & cash flow
Free cash flow R$12.0B FY2025
Net debt R$60.8B FY2025 · ≈ 5.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 55 · Market factors (momentum, volatility) 61

Profitability 28
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 95
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 65
Distance to the 52-week high (market factor)
Net Issuance 70
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

AXIA Energia SA, through its subsidiaries, engages in the generation, transmission, distribution, and commercialization of electricity in Brazil. The company generates electricity through hydroelectric, wind farms, and solar power plants.

Full company description

AXIA Energia SA, through its subsidiaries, engages in the generation, transmission, distribution, and commercialization of electricity in Brazil. The company generates electricity through hydroelectric, wind farms, and solar power plants. It also owns hydroelectric plants with a total capacity of 43,072.7 MW; 798.7 MW wind power plants; and 67,030.74 km of transmission lines. The company was formerly known as Centrais Elétricas Brasileiras S.A. - Eletrobrás. AXIA Energia SA was incorporated in 1962 and is headquartered in Rio de Janeiro, Brazil.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Centrais Elétricas Brasileiras S.A. - Eletrobrás reported revenue of R$41.3B in FY2025 versus R$37.6B in FY2021, a compound +2.4%/yr. Reported net income was R$6.6B in FY2025, compounding +3.8%/yr from FY2021.

Growth Quality 79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
R$41.3B
Latest YoY
+2.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.3%
Avg. revenue growth/yr (19Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.4%
Value creation/yr (5Y, in BRL) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year. Measured in BRL: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+10.0% (−0.7 + 10.7)
Revenue +2.4%/yr
FY21 R$37.6B
FY22 R$34.1B
FY23 R$37.2B
FY24 R$40.2B
FY25 R$41.3B
Net income +3.8%/yr
FY21 R$5.6B
FY22 R$2.7B
FY23 R$4.5B
FY24 R$10.4B
FY25 R$6.6B

AXIA3 screens 41% overvalued. Compare with China Yangtze Power Co →

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Cite: Fair Value Calculator (2026). "Centrais Elétricas Brasileiras S.A. - Eletrobrás Fair Value". https://www.fairvalue-calculator.com/stock/AXIA3

Peer Group

Utilities - Renewable · 213 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 58 · Top 25%
Fair Value upside −29% · Below median
Return on equity (TTM) 8% · Above median
Return on assets 2% · Above median
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 44% · Top 25%
Revenue growth 22% · Top 25%
Dividend yield (TTM) 10.7% · Top 25%
Debt / equity 0.52× · Lower than median

Valuation Multiples vs Utilities - Renewable median · lower = cheaper

P/E (TTM) 12.7× · Cheaper than median
P/B 0.20× · Cheaper than 75% of peers
P/S (TTM) 0.54× · Cheaper than 75% of peers
P/FCF 2.0× · Cheaper than median
EV/EBITDA 5.1× · Cheaper than 75% of peers
PEG 2.93× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 6
FUTURE100 · sector 0
PAST31 · sector 14
HEALTH74 · sector 68
DIVIDEND100 · sector 44

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Renewable stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
China Yangtze Power Co 600900 ¥27.96 ¥25.13 −10%
Ørsted A/S ORSTED kr 139.25 kr 31.40 −77%
Huaneng Lancang River Hydropower Inc 600025 ¥9.79 ¥5.57 −43%
Adani Green Energy Limited ADANIGREEN ₹1,319 ₹169.61 −87%
AXIA Energia SA AXIAP $10.74 $9.49 −12%
VERBUND AG OEWA €57.00 €66.19 +16%
BEP BEP $31.27 $70.40 +125%
BEPUN BEPUN C$45.05 C$42.83 −5%
Fortum Oyj FORTUM €19.80 €13.55 −32%
China Longyuan Power Group 001289 ¥15.92 ¥7.55 −53%

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Frequently asked questions

Is Centrais Elétricas Brasileiras S.A. - Eletrobrás (AXIA3) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of R$39.58 versus a price of R$55.75, about −29% upside (overvalued).
What is the fair value of AXIA3?
Our model-based fair value for Centrais Elétricas Brasileiras S.A. - Eletrobrás is R$39.58 (as of Aug 20, 2026), built from audited fundamentals. The current price: R$55.75.
What is the quality score of AXIA3?
Centrais Elétricas Brasileiras S.A. - Eletrobrás has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Centrais Elétricas Brasileiras S.A. - Eletrobrás (AXIA3)?
Centrais Elétricas Brasileiras S.A. - Eletrobrás reported trailing-twelve-month revenue of about R$43.6B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of AXIA3?
The net profit margin of Centrais Elétricas Brasileiras S.A. - Eletrobrás is about 21.9%, meaning it keeps roughly 21.9% of revenue as net income. Based on the latest reported figures.
Does Centrais Elétricas Brasileiras S.A. - Eletrobrás pay a dividend?
Centrais Elétricas Brasileiras S.A. - Eletrobrás currently shows a dividend yield of about 10.67% relative to its recent price (as of Aug 20, 2026).
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