Valuation: avaliação econômica da empresa Engie Brasil Energia S.A

Abstract

The economic value of ENGIE Brasil Energia S.A., listed under the ticker EGIE3 on the Novo Mercado segment of the Brazilian stock exchange (B3), was measured using the discounted cash flow method. ENGIE is a leader in Brazil's renewable energy sector and is responsible for approximately 6% of the country's installed energy capacity, with consistent growth in recent years. To carry out its financial evaluation, the results of the company's financial statements were projected for the next five years (2023 to 2027), based on historical performance data from the last three years (2020 to 2022). This resulted in an economic value of R$87.78 for the company's shares in December 2022, which indicates that ENGIE Brasil has a growth potential of 132% in comparison to its current value of R$37.88. To test the sensitivity of the estimated valuation model, a sensitivity analysis was carried out by varying two different parameters: the WACC and the variable cost. In the scenario with the highest variable cost and discount rate, the company's value per share was R$54.01, indicating a growth potential of 43% in relation to EGIE3's current price of R$37.88. On the other hand, in the most optimistic scenario, with the lowest discount rate and variable cost, the company's value per share was R$139.53, more than the triple value quoted on December 30, 2022.