Latest Ratios: P/E Ratio 12.3x · EV/EBITDA 9.7x · ROE 20.9%. (2001–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $19.9B | $16.3B | $9.8B | $10.4B | $7.3B | $5.0B | $5.9B | $10.3B | $5.5B | $7.1B | $5.9B |
| Enterprise Value | $26.7B | $51.6B | $33.4B | $29.1B | $24.4B | $22.0B | $22.7B | $13.0B | $15.6B | $17.0B | $16.0B |
| P/E Ratio → | 12.33 | 1.97 | 1.03 | 2.96 | 2.34 | 2.19 | 6.14 | 3.04 | 1.94 | 2.82 | 2.02 |
| P/S Ratio | 2.73 | 0.44 | 0.27 | 0.41 | 0.33 | 0.26 | 0.33 | 0.57 | 0.34 | 0.49 | 0.42 |
| P/B Ratio | 2.41 | 0.39 | 0.27 | 0.35 | 0.27 | 0.20 | 0.26 | 1.91 | 0.28 | 0.41 | 0.39 |
| P/FCF | — | — | — | — | 6.68 | 4.02 | — | 11.06 | 3.33 | 5.39 | 6.85 |
| P/OCF | 12.42 | 1.99 | 1.32 | 2.15 | 1.83 | 1.28 | 1.18 | 2.45 | 1.43 | 2.16 | 1.98 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.38 | 0.92 | 1.14 | 1.10 | 1.13 | 1.28 | 0.72 | 0.97 | 1.16 | 1.14 |
| EV / EBITDA | 9.67 | 3.64 | 1.84 | 3.19 | 3.43 | 3.47 | 3.48 | 1.74 | 2.38 | 3.22 | 3.50 |
| EV / EBIT | 11.41 | 4.29 | 2.16 | 4.72 | 4.44 | 5.64 | 10.94 | 2.36 | 3.40 | 4.24 | 3.45 |
| EV / FCF | — | — | — | — | 22.37 | 17.62 | — | 13.98 | 9.45 | 12.80 | 18.47 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.6% | 36.6% | 54.1% | 37.2% | 34.9% | 34.3% | 37.2% | 43.6% | 43.5% | 39.9% | 36.1% |
| Operating Margin | 32.2% | 32.2% | 42.9% | 24.8% | 21.1% | 21.0% | 25.2% | 31.8% | 32.2% | 27.1% | 24.3% |
| Net Profit Margin | 22.2% | 22.2% | 26.5% | 13.8% | 14.2% | 11.8% | 5.5% | 18.7% | 17.6% | 17.2% | 20.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.9% | 20.9% | 28.7% | 12.3% | 11.9% | 9.7% | 6.9% | 27.0% | 15.3% | 15.3% | 20.2% |
| ROA | 8.9% | 8.9% | 13.5% | 5.9% | 5.7% | 4.5% | 3.1% | 12.2% | 6.8% | 6.6% | 8.4% |
| ROIC | 13.1% | 13.1% | 21.3% | 10.2% | 8.1% | 7.5% | 14.1% | 22.7% | 13.6% | 11.2% | 10.1% |
| ROCE | 15.2% | 15.2% | 25.4% | 12.2% | 9.4% | 8.9% | 16.5% | 23.7% | 14.2% | 11.8% | 11.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.94 | 0.94 | 0.68 | 0.65 | 0.69 | 0.71 | 0.76 | 0.61 | 0.67 | 0.69 | 0.78 |
| Debt / EBITDA | 2.82 | 2.82 | 1.39 | 2.14 | 2.67 | 2.79 | 2.64 | 0.44 | 2.00 | 2.30 | 2.61 |
| Net Debt / Equity | — | 0.83 | 0.64 | 0.63 | 0.63 | 0.68 | 0.74 | 0.50 | 0.52 | 0.56 | 0.65 |
| Net Debt / EBITDA | 2.49 | 2.49 | 1.30 | 2.05 | 2.41 | 2.68 | 2.58 | 0.36 | 1.54 | 1.87 | 2.20 |
| Debt / FCF | — | — | — | — | 15.69 | 13.60 | — | 2.92 | 6.12 | 7.41 | 11.61 |
| Interest Coverage | 2.86 | 2.86 | 8.61 | 4.37 | 4.51 | 5.31 | 13.19 | 25.86 | 9.40 | 8.72 | 8.23 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.12 | 1.12 | 0.89 | 0.93 | 1.09 | 1.28 | 1.09 | 0.76 | 1.04 | 0.96 | 0.89 |
| Quick Ratio | 1.12 | 1.12 | 0.89 | 0.92 | 1.08 | 1.25 | 1.07 | 0.75 | 1.03 | 0.94 | 0.88 |
| Cash Ratio | 0.75 | 0.75 | 0.45 | 0.39 | 0.53 | 0.62 | 0.65 | 0.35 | 0.56 | 0.48 | 0.44 |
| Asset Turnover | — | 0.35 | 0.45 | 0.42 | 0.39 | 0.37 | 0.35 | 1.56 | 0.37 | 0.37 | 0.38 |
| Inventory Turnover | 1073.12 | 1073.12 | 1534.76 | 186.63 | 115.50 | 112.77 | 106.63 | 578.83 | 138.52 | 102.47 | 155.39 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 14.2% | — | — | — | 5.1% | — | 7.2% | 11.9% | 10.7% | 2.3% |
| Payout Ratio | 27.9% | 27.9% | — | — | — | 11.0% | — | 22.0% | 23.0% | 30.4% | 4.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.1% | 50.7% | 97.6% | 33.8% | 42.7% | 45.6% | 16.3% | 32.9% | 51.6% | 35.4% | 49.4% |
| FCF Yield | — | — | — | — | 15.0% | 24.9% | — | 9.0% | 30.1% | 18.6% | 14.6% |
| Buyback Yield | 0.5% | 2.9% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.7% | 17.1% | 0.0% | 0.0% | 0.0% | 5.1% | 0.0% | 7.2% | 11.9% | 10.7% | 2.3% |
| Shares Outstanding | — | $3.4B | $3.4B | $3.4B | $3.4B | $3.4B | $3.4B | $3.4B | $3.4B | $3.4B | $3.4B |
Privatization and universalization execution
According to current market data, SBS trades at a TTM P/E of 12.38, which appears to reflect a significant privatization premium compared to historical state-controlled utility benchmarks, as investors weigh the potential for future efficiency gains against the immediate burden of mandatory infrastructure universalization and regulatory uncertainty.
The forward P/E of 2.66 suggests that the market is pricing in a dramatic shift in earnings power, likely anticipating that the transition to private control will unlock operational efficiencies. However, investors should monitor whether this valuation remains sustainable if the regulatory framework fails to provide timely tariff adjustments to offset the massive capital expenditure requirements.
Based on reported financial statements, the debt-to-capital ratio has trended upward to 0.54 in 2026Q1, indicating that the company is increasingly relying on debt financing to sustain its aggressive capital expenditure program while navigating the complex transition toward a fully privatized operational model in São Paulo.
The volatility in interest coverage, which dropped to 2.29 in 2026Q1 from significantly higher levels in previous quarters, suggests that the company's ability to service its debt is becoming more sensitive to interest rate fluctuations and operational cash flow instability. This trend warrants further investigation into the long-term sustainability of the current capital structure under the New Sanitation Framework.
As indicated by the company's recent financial disclosures, dividend distributions have been inconsistent, with a 15.8% yield observed in 2025Q2 followed by periods of zero payout, reflecting the inherent tension between returning capital to shareholders and funding the massive infrastructure mandates required by the state regulator.
The high payout ratio of 110.7% in 2025Q2 suggests that dividend payments have occasionally exceeded internally generated cash, which is unsustainable for a utility facing such intense capital requirements. Investors should interpret these fluctuations as a sign that capital allocation remains secondary to the immediate, non-discretionary needs of the universalization project.
Market participants frequently misapply standard P/E ratios to SBS by ignoring the distortive impact of IFRIC 12 construction revenue, which artificially inflates earnings and masks the underlying cash-burning nature of the company's mandatory infrastructure build-out required under the current regulatory framework in the State of São Paulo.
Using a standard P/E ratio obscures the reality that a significant portion of reported earnings is non-cash in nature, failing to account for the actual cash flow available for dividends or debt reduction. Analysts should instead focus on cash-based metrics or regulatory asset base growth to better assess the true economic value of the utility's operations.
Includes 30+ ratios · 25 years · Updated daily
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Quick answers to the most common questions about buying SBS stock.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP's current P/E ratio is 12.3x. The historical average is 3.1x. This places it at the 100th percentile of its historical range.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP's current EV/EBITDA is 9.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 3.7x.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP's return on equity (ROE) is 20.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 11.9%.
Based on historical data, Companhia de Saneamento Básico do Estado de São Paulo - SABESP is trading at a P/E of 12.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP's current dividend yield is 2.27% with a payout ratio of 27.9%.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP has 36.6% gross margin and 32.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Companhia de Saneamento Básico do Estado de São Paulo - SABESP's Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.