Naturgy Energy Group, S.A.

WBAG:GAS Stock Report

Market Cap: €22.0b

Naturgy Energy Group Valuation

Is GAS 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 GAS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GAS (€23.06) is trading above our estimate of fair value (€19.48)

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

Key Valuation Metric

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

Key metric: As GAS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GAS. This is calculated by dividing GAS's market cap by their current earnings.
What is GAS's PE Ratio?
PE Ratio11x
Earnings€2.01b
Market Cap€22.04b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GAS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.4x
VER VERBUND
15.7x-11.9%€26.2b
ATO Atmos Energy
22.4x11.1%US$23.3b
EVN EVN
7.4x-7.7%€4.4b
3 Hong Kong and China Gas
20.1x9.2%HK$110.1b
GAS Naturgy Energy Group
11x-5.0%€22.0b

Price-To-Earnings vs Peers: GAS is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (16.4x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GAS 11.0xIndustry Avg. 14.3xNo. of Companies17PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GAS is good value based on its Price-To-Earnings Ratio (11x) compared to the Global Gas Utilities industry average (14.1x).

Price to Earnings Ratio vs Fair Ratio

What is GAS'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.

GAS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio11.7x

Price-To-Earnings vs Fair Ratio: GAS is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (11.7x).

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 GAS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€23.06
€24.16
+4.8%
5.6%€27.00€21.00n/a16
Nov ’25€23.10
€24.16
+4.6%
5.6%€27.00€21.00n/a16
Oct ’25€23.52
€24.16
+2.7%
5.2%€26.50€21.00n/a17
Sep ’25€23.12
€24.11
+4.3%
5.4%€26.50€21.00n/a16
Aug ’25€22.18
€24.11
+8.7%
5.5%€26.50€21.00n/a15
Jul ’25€20.40
€24.18
+18.5%
7.4%€27.80€21.00n/a15
Jun ’25€24.62
€23.88
-3.0%
6.7%€27.80€21.00n/a15
May ’25€23.98
€23.84
-0.6%
6.7%€27.80€21.00n/a15
Apr ’25€20.24
€23.53
+16.2%
10.8%€27.80€16.00n/a16
Mar ’25€21.88
€23.53
+7.5%
10.8%€27.80€16.00n/a16
Feb ’25€24.68
€24.09
-2.4%
11.0%€27.80€16.00n/a17
Jan ’25€26.92
€24.31
-9.7%
11.1%€27.80€16.00n/a17
Dec ’24€27.46
€24.25
-11.7%
11.1%€27.80€16.00n/a17
Nov ’24€26.58
€24.25
-8.8%
11.1%€27.80€16.00€23.1017
Oct ’24€25.82
€24.30
-5.9%
11.4%€28.30€16.00€23.5217
Sep ’24€26.58
€24.47
-7.9%
11.9%€28.30€16.00€23.1217
Aug ’24€27.82
€24.50
-11.9%
11.9%€28.30€16.00€22.1817
Jul ’24€26.82
€24.16
-9.9%
11.8%€29.60€16.00€20.4017
Jun ’24€26.82
€23.99
-10.5%
12.1%€29.60€16.00€24.6217
May ’24€28.18
€23.93
-15.1%
12.3%€29.60€16.00€23.9816
Apr ’24€27.50
€23.87
-13.2%
12.3%€29.60€16.00€20.2416
Mar ’24€26.15
€23.81
-8.9%
12.1%€29.60€16.00€21.8816
Feb ’24€25.88
€23.18
-10.4%
12.3%€29.60€16.00€24.6815
Jan ’24€24.57
€23.09
-6.0%
12.5%€29.60€16.00€26.9215
Dec ’23€26.83
€22.79
-15.1%
12.2%€29.60€16.00€27.4616
Nov ’23€25.79
€22.75
-11.8%
12.2%€29.60€16.00€26.5816

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

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