Companhia Energética de Minas Gerais

UNDERVALUEDCIG · NYSE · Utilities
CIG·NYSE·Utilities
UNDERVALUED
Companhia Energética de Minas Gerais
28.3%upside
MARKET PRICE
$2.52
FAIR PRICE
$3.24
MARGIN
$0.72
UNDERVALUEDFAIROVERVALUED
P/E RATIO
7.1x
DIV. YIELD
N/A
ROE
17.3%
MARKET CAP
$35B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

28.3%upside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$2.52

FAIR PRICE

$3.24

MARGIN

$0.72

UNDERVALUEDFAIROVERVALUED

P/E Ratio

7.1x

What is P/E? →

Div. Yield

N/A

ROE

17.3%

Strong

Market Cap

$35B

Large-cap

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FPI RATING

6.4/ 10

Low debt levels and attractive valuation, but weak profitability margins.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$2.59CONSERVATIVE ENTRY
$3.24FAIR PRICE
$2.52MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$2.59

Fair price × 0.80

DISTANCE

2.7%

Price to entry level

At the current price of $2.52, CIG trades 2.7% below the conservative entry level of $2.59. The stock is currently priced below the 20% margin of safety threshold, indicating a potential value opportunity based on the model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate CIG's fair price

Companhia Energética de Minas Gerais's fair price of $3.24 is derived from a blended model that combines DCF analysis (50%), relative valuation against Utilities peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $2.52, CIG trades 28.3% below its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting CIG's risk profile.

RELATIVE · 30%

Comparing CIG's valuation multiples against Utilities peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for CIG, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate CIG's fair value with your own inputs.

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FAQ

What is the fair price of CIG?+

Based on our blended model combining DCF analysis (50%), relative valuation against Utilities peers (30%), and analyst consensus (20%), the fair price for Companhia Energética de Minas Gerais is $3.24. At the current market price of $2.52, CIG trades 28.3% below its calculated fair value.

Is CIG overvalued or undervalued?+

Companhia Energética de Minas Gerais is currently undervalued based on our valuation model. The stock trades at $2.52, which is 28.3% below the fair price of $3.24. The P/E ratio of 7.1x is a key metric in the valuation.

What is the margin of safety for CIG?+

With a 20% margin of safety applied to the fair price of $3.24, the conservative entry level for CIG is $2.59. At the current market price of $2.52, the stock trades 2.7% below this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is CIG's fair price updated?+

We update fair price calculations for CIG daily after market close. The current fair price of $3.24 incorporates the latest market data and sector multiples.

What factors affect CIG's fair price calculation?+

CIG's fair price of $3.24 is derived from DCF analysis (50% weight), relative valuation against Utilities peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 7.1x, ROE of 17.3%.

Is CIG a good buy right now?+

At $2.52, CIG trades 28.3% below our fair value estimate of $3.24. The stock is currently undervalued. ROE stands at 17.3% (strong). Fair Price Index provides valuation data — always do your own research before investing.

Does CIG pay dividends?+

CIG does not currently pay a dividend.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.