SABESP(SBS) ZACKS·2025-01-07 16:06Core Viewpoint - The article emphasizes the importance of value investing and highlights Companhia de saneamento Basico Do Estado De Sao Paulo Sabesp (SBS) as a potentially undervalued stock based on various financial metrics [2][8]. Company Metrics - SBS holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 12.69, significantly lower than the industry average of 17.75 [4]. - SBS's Forward P/E has fluctuated between 10.93 and 16.72 over the past year, with a median of 13.85 [4]. - The PEG ratio for SBS is 0.76, compared to the industry average of 1.70, suggesting it is undervalued relative to its expected earnings growth [5]. - SBS has a P/B ratio of 1.41, which is lower than the industry average of 2.64, indicating a favorable market value compared to its book value [6]. - The P/CF ratio for SBS is 4.25, well below the industry average of 10.38, further supporting the notion of undervaluation [7]. Investment Outlook - The combination of these metrics suggests that SBS is likely undervalued at present, making it an attractive option for value investors [8].