CPFL Energia (BSP:CPFE3) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BSP:CPFE3 CPFL Energia SA BSP:CPFE3
76 GF Score
Price R$46.40
GF Value R$38.04
Valuation Modestly Overvalued
! 3 Warning Signs
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What is CPFL Energia Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of CPFL Energia is: Moderate Risk: Sensitive, better choose undervalued stock.

CPFL Energia  (BSP:CPFE3) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

CPFL Energia Risk Assessment Related Terms

BSP:CPFE3 vs NEE, SO, DUK: Risk Assessment Comparison

For the Utilities - Regulated Electric subindustry, CPFL Energia's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

CPFL Energia Risk Assessment vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, CPFL Energia's Risk Assessment distribution charts can be found below:

* The bar in red indicates where CPFL Energia's Risk Assessment falls into.


BSP:CPFE3
76GF Score
CPFL Energia SA BSP:CPFE3
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is CPFL Energia (BSP:CPFE3) Overvalued in 2026?

Based on GuruFocus' analysis, CPFL Energia stock appears to be overvalued. The current stock price of R$46.40 is trading 22% above its estimated GF Value™ of R$38.04. GuruFocus considers CPFL Energia to be Modestly Overvalued.

Key valuation signals for BSP:CPFE3:

  • Risk Assessment:
  • GF Value™: R$38.04 vs. price of R$46.40 (22% above fair value)
  • GF Score™: 76/100 with 3 warning signs

No single metric tells the full story. See the BSP:CPFE3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

CPFL Energia Business Description

Address Rua Jorge Figueiredo Correa, No. 1632, Jardim Professora Tarcilia, Campinas, Sao Paulo, SP, BRA, 13087-397
CPFL Energia SA operates as a holding company. Along with its subsidiaries, the company is engaged in distribution, generation, transmission and commercialization activities of electric energy in Brazil. It also provides energy-related services through its solutions division, including energy management and trading, energy efficiency services, distributed generation, energy infrastructure development, and consulting services. The company's operating segments are (i) electric energy distribution activities, (ii) electric energy generation, (iii) electric energy transmission, (iv) energy commercialization, (v) service activities, and (vi) other activities not listed in the previous items. The majority of the company's revenue is derived from the electric energy distribution segment.
76GF Score

Get the complete analysis for BSP:CPFE3

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$46.40
Price
R$38.04
GF Value