Rede Energia Participações S.A (REDE3) fair value: what the stock is really worth
We calculate from audited financials what Rede Energia Participações S.A is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
Check the quality50 and up solid, 75 and up strong
Watch it or check another stockalert when fair value or trend changes
Below-average quality, trading 42% below our fair value of R$9.46.
As of Aug 13, 2026, the fair value of Rede Energia Participações S.A is R$9.46 per share against a price of R$5.50, so the fair value sits 72% above the price. A model estimate from reported figures, not an analyst target.
!Mixed Growth (revenue 5y +8.8 %/yr)
!Thin margins · 5.7% net margin
!High debt · generates free cash flow
·8.47% dividend yield
✓Ranks above peers (11/15)
!Moderate moat 61/100
Evidence: HighRange R$5.76 to R$14.49
Fair value as of: Aug 13, 2026
From 22 valuation models · updated 28 days ago
Fair value updated Aug 13, 2026, revised from R$8.43 to R$9.46 (+12.2%) since Jul 11, 2026. Share price −4.7% over the past month.
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What matters now
The large discount to fair value meets weak quality (39/100). That raises the risk this is a value trap rather than a bargain.
The price is below even our cautious bear case (R$5.76). The market is more pessimistic than our downside scenario.
A fairly wide model range (R$5.76 to R$14.49) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range R$3.70 – R$7.30 · fair‑value band R$5.76 – R$14.49 · the R$5.50 price screens below the R$9.46 fair value. Dashed = 300-day average. As of Aug 13, 2026.
Rede Energia Participações S.A (REDE3) currently trades at R$5.50, while our model-based Fair Value estimate is R$9.46, implying the stock looks roughly 41.9% undervalued today. The Quality Score stands at 39/100 (below-average quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of R$20.49 per share, and 18 of the 22 models we run sit above the R$5.50 price. Bear case: the Asset-Based group reads lowest at R$1.61, and 4 of the 22 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Rede Energia Participações S.A generated revenue of R$19.8B at a net margin of 5.7%. Revenue grew 9.4% year over year. It earns a return on equity of 23.2%. Net debt stands at R$18.7B. Fundamentals as of Aug 13, 2026
Scenario range: R$5.76 (bear) to R$14.49 (bull), the price of R$5.50 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 23% below its 52-week high, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −38% fair-value upside, at 72%, REDE3 screens cheaper than that median.
Fair Value models
Based on fiscal year 2025 figures (about 8 months old). Earnings retained since then (R$0.0237 per share) are deliberately not added.
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘ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
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Key figures & financial health
P/E ratio11.0
P/S ratio0.77P/E × margin
EPS (TTM)R$0.5000price ÷ EPS = P/E 11.0
Dividend yield8.5%payout 93.2%
Net margin7.0%FY2025
Return on equity23.2%TTM
More key figures
Profitability
Return on assets (EBIT)13.0%avg 5y
Operating margin20.1%TTM
Growth
Revenue (TTM)R$19.8BTTM
Revenue growth (YoY)+9.4%3y avg +4.4%
EPS growth (YoY)−31.5%
Balance sheet & cash flow
Free cash flowR$14.3MFY2025
Net debtR$18.7BFY2025
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality39/100
Of which business quality 37
· Market factors (momentum, volatility) 45
Profitability38
Margins and returns on capital today
Quality Growth33
Are margins and returns improving?
Cashflow48
Earnings quality: real cash, not paper profit
Fin. Strength11
Balance sheet, leverage, solvency risk
Investment23
Disciplined investing over empire-building
Low Volatility97
Calm price path (market factor)
Momentum31
Price trend over the last 3–12 months (market factor)
52W Momentum11
Distance to the 52-week high (market factor)
Net Issuance71
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
Rede Energia Participações S.A. engages in the generation, distribution, and commercialization of electricity in Brazil. The company is involved in the construction, operation, maintenance, and services related to generation and distribution of electric energy.
Full company description
Rede Energia Participações S.A. engages in the generation, distribution, and commercialization of electricity in Brazil. The company is involved in the construction, operation, maintenance, and services related to generation and distribution of electric energy. It offers its electricity to residential, industrial, commercial, rural, government, and public sector customers. The company was incorporated in 1929 and is based in Cataguases, Brazil.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Rede Energia Participações S.A reported revenue of R$17.2B in FY2025 versus R$14.7B in FY2021, a compound +3.9%/yr. Reported net income was R$1.2B in FY2025, compounding −3.1%/yr from FY2021.
Growth Quality 42/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
R$17.2B
Latest YoY
−3.8%
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.
+4.4%
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.
+8.8%
Avg. revenue growth/yr (21Y) ⓘ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.
+9.3%
Value creation/yr (5Y, in BRL) ⓘEarnings growth per share (CAGR 5 years) 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.
+13.9%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+5.4%
Dividend yield8.5%
Trend ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 5.4% vs 10Y 9.3%, flattening
Operating margin (EBIT) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.16.2% (2020) → 22.9% (2025) · rising
Worst earnings drop295% (2010) (loss year, drop beyond 100%) · in BRL
Revenue+3.9%/yr
FY21R$14.7B
FY22R$15.1B
FY23R$16.1B
FY24R$17.9B
FY25R$17.2B
Net income−3.1%/yr
FY21R$1.4B
FY22R$1.5B
FY23R$1.7B
FY24R$1.5B
FY25R$1.2B
Character of growth · EPS growth decomposed (2014-2025)+6.0 % p.a.
Revenue per share+9.7 %
of which total revenue +11.3 % · buybacks/dilution −1.4 %
EBIT margin+12.9 %
Tax rate−0.7 %
Residual (interest, one-offs)−13.8 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Rede Energia Participações S.A Fair Value". https://www.fairvalue-calculator.com/stock/REDE3
Peer Group
Utilities - Regulated Electric · 155 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.
Valuation
Quality Score39 · Bottom 25%
Fair Value upside+71% · Top 25%
Profitability
Return on equity (TTM)23% · Top 25%
Return on assets8% · Top 25%
Net margin (TTM)6% · Below median
Operating margin (TTM)20% · Above median
Growth and dividend
Revenue growth9% · Above median
Dividend yield (TTM)8.5% · Top 25%
Balance sheet
Debt / equity2.77× · Highest 25%
Valuation Multiples vs Utilities - Regulated Electric median · lower = cheaper
P/E (TTM)11.0× · Cheaper than median
P/B0.47× · Cheapest 25%
P/S (TTM)0.15× · Cheapest 25%
P/FCF205.2× · Priciest 25%
EV/EBITDA4.0× · Cheapest 25%
PEG1.28× · Cheapest 25%
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must Rede Energia Participações S.A deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
Implied FCF growth, 10 yearsmore than 80 % per year
Achieved revenue growth, 5 years+8.8 % p.a.
Sector median revenue growth+0.7 %
FCF yield on price0.12 %
Discount rate (WACC) in the models11.2 %
The price sits beyond what a cash-flow model can represent: the valuation rests on more than today's free cash flow. Ranking of the largest stocks →
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.
This stockSector peers
VALUE100· sector 3
FUTURE47· sector 32
PAST93· sector 39
HEALTH0· sector 53
DIVIDEND100· sector 64
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 - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
Is Rede Energia Participações S.A (REDE3) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R$9.46 versus a price of R$5.50, about +72% upside (undervalued).
What is the fair value of REDE3?
Our model-based fair value for Rede Energia Participações S.A is R$9.46 (as of Aug 13, 2026), built from audited fundamentals. The current price: R$5.50.
What is the quality score of REDE3?
Rede Energia Participações S.A has a Quality Score of 39/100. 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 price target for Rede Energia Participações S.A (REDE3)?
Our model-based price target is the fair value of R$9.46 (as of Aug 13, 2026) from 22 valuation models. Cautious scenario R$5.76, optimistic scenario R$14.49. It is a calculation from audited fundamentals, not an analyst target.
What is the Rede Energia Participações S.A stock forecast for 2026?
Our models put fair value at R$9.46, about +72% upside versus a price of R$5.50 (undervalued). Cautious scenario R$5.76, optimistic scenario R$14.49. The calculation is refreshed regularly with new filings.
What is the revenue of Rede Energia Participações S.A (REDE3)?
Rede Energia Participações S.A reported trailing-twelve-month revenue of about R$19.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of REDE3?
The net profit margin of Rede Energia Participações S.A is about 5.7%, meaning it keeps roughly 5.7% of revenue as net income. Based on the latest reported figures.
Does Rede Energia Participações S.A pay a dividend?
Rede Energia Participações S.A currently shows a dividend yield of about 8.47% relative to its recent price (as of Aug 13, 2026).
What growth is priced into Rede Energia Participações S.A (REDE3)?
For today's price to be fair in a discounted-cash-flow model, Rede Energia Participações S.A would have to grow free cash flow by more than 80 % per year for ten years (discount rate 11.2 %, then 2 % perpetual growth). Over the last 5 years revenue grew +8.8 % per year. As of Aug 13, 2026.
What discount rate (WACC) does the fair value of REDE3 use?
Our models discount Rede Energia Participações S.A at 11.2 %: a base by market capitalisation (mid), damped by beta 0.08, country premium for Brazil. The same rate applies in all 26 models.
What is the intrinsic value of Rede Energia Participações S.A (REDE3)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Rede Energia Participações S.A it is R$9.46 per share (as of Aug 13, 2026), against a price of R$5.50. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Rede Energia Participações S.A stock overvalued or undervalued in 2026?
As of Aug 13, 2026, REDE3 trades below its calculated fair value: price R$5.50, fair value R$9.46, a gap of about +72% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of REDE3?
No. The price is what the market pays today (R$5.50); the fair value is what the company's own numbers justify (R$9.46). For Rede Energia Participações S.A the two are R$3.96 per share apart. That gap is exactly why we show both numbers side by side.
How much is Rede Energia Participações S.A worth?
The market values Rede Energia Participações S.A at about R$15.0B (market capitalisation, as of Aug 13, 2026). Per share that is R$5.50; our models calculate a fair value of R$9.46 per share.
What do the bullish and bearish scenarios say about REDE3?
Our models span a range for Rede Energia Participações S.A: cautious scenario R$5.76, base R$9.46, optimistic R$14.49 per share (as of Aug 13, 2026, price R$5.50). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of REDE3?
Rede Energia Participações S.A trades at a price-to-earnings ratio of 11.0 (as of Aug 13, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$9.46 is built from several models across several years. Other multiples: PEG 1.3, P/B 0.5, P/S 0.1, EV/EBITDA 4.0.
What is the PEG ratio of REDE3?
The PEG ratio of Rede Energia Participações S.A is 1.28 (P/E divided by earnings growth, as of Aug 13, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Rede Energia Participações S.A (REDE3)?
Balance-sheet figures for Rede Energia Participações S.A (as of Aug 13, 2026): return on equity 23.2%, debt of 2.77 per unit of equity. They feed the Quality Score of 39/100, which measures business quality independently of the share price.
How far is REDE3 from its 52-week high?
Rede Energia Participações S.A trades at R$5.50, about 23% below its 52-week high of R$7.18 (as of Aug 13, 2026). Distance from the high says nothing about value: that is what the fair value of R$9.46 is for.
Which stocks are comparable to Rede Energia Participações S.A?
From the same area (Utilities) we also value NextEra Energy, Inc, The Southern Company, Duke Energy Corporation, National Grid plc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Rede Energia Participações S.A stock attractive at the current price?
The data as of Aug 13, 2026: price R$5.50, calculated fair value R$9.46 (+72%), Quality Score 39/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of REDE3 calculated?
We run Rede Energia Participações S.A through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of R$9.46, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 32.6 % above its aggregate fair value. Rede Energia Participações S.A currently trades 72 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on <a href="/is-it-worth-investing-now/">is it worth investing now</a>.
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