A2A Valuation

Is A2A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of A2A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A2A (€2) is trading above our estimate of fair value (€0.73)

Significantly Below Fair Value: A2A is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for A2A?

Other financial metrics that can be useful for relative valuation.

A2A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA5.2x
PEG Ratio-0.7x

Price to Earnings Ratio vs Peers

How does A2A's PE Ratio compare to its peers?

The above table shows the PE ratio for A2A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.6x
BHD Burgenland Holding
18.7xn/a€213.0m
EVN EVN
8.2x-4.3%€4.8b
VER VERBUND
13.5x-13.5%€25.6b
CU Canadian Utilities
18xn/aCA$9.8b
A2A A2A
7.1x-10.4%€6.2b

Price-To-Earnings vs Peers: A2A is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (14.6x).


Price to Earnings Ratio vs Industry

How does A2A's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a4.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a4.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: A2A is good value based on its Price-To-Earnings Ratio (7.1x) compared to the Global Integrated Utilities industry average (17.2x).


Price to Earnings Ratio vs Fair Ratio

What is A2A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

A2A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.4x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: A2A is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst A2A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.00
€2.28
+13.9%
3.5%€2.40€2.15n/a5
Sep ’25€2.07
€2.28
+10.5%
3.5%€2.40€2.15n/a5
Aug ’25€1.94
€2.28
+17.7%
3.5%€2.40€2.15n/a5
Jul ’25€1.89
€2.18
+15.4%
3.1%€2.30€2.10n/a5
Jun ’25€1.92
€2.19
+14.2%
2.7%€2.30€2.15n/a5
May ’25€1.83
€2.02
+10.7%
4.7%€2.15€1.88n/a5
Apr ’25€1.68
€1.98
+17.8%
4.8%€2.15€1.88n/a5
Mar ’25€1.67
€2.19
+30.7%
6.7%€2.45€2.00n/a5
Feb ’25€1.82
€2.20
+20.5%
6.6%€2.45€2.00n/a5
Jan ’25€1.86
€2.20
+18.1%
6.6%€2.45€2.00n/a5
Dec ’24€1.98
€2.14
+8.3%
8.8%€2.45€1.90n/a5
Nov ’24€1.77
€1.96
+10.7%
5.9%€2.15€1.80n/a5
Oct ’24€1.67
€1.97
+17.9%
6.0%€2.15€1.80€2.075
Sep ’24€1.77
€1.95
+10.4%
6.3%€2.15€1.80€2.075
Aug ’24€1.70
€1.94
+14.1%
6.7%€2.15€1.80€1.945
Jul ’24€1.68
€1.83
+9.2%
3.6%€1.88€1.70€1.895
Jun ’24€1.56
€1.84
+18.0%
4.4%€1.95€1.70€1.925
May ’24€1.59
€1.61
+0.9%
8.5%€1.84€1.45€1.835
Apr ’24€1.46
€1.61
+9.9%
8.5%€1.84€1.45€1.685
Mar ’24€1.36
€1.55
+13.4%
10.4%€1.84€1.40€1.675
Feb ’24€1.38
€1.51
+9.1%
12.5%€1.84€1.35€1.825
Jan ’24€1.26
€1.51
+19.9%
12.5%€1.84€1.35€1.865
Dec ’23€1.29
€1.67
+29.7%
24.4%€2.50€1.35€1.986
Nov ’23€1.12
€1.76
+57.4%
22.7%€2.50€1.30€1.776
Oct ’23€1.00
€1.79
+78.5%
20.5%€2.50€1.35€1.676

Analyst Forecast: Target price is less than 20% higher than the current share price.


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