Iberdrola, S.A.

WBAG:IBE Stock Report

Market Cap: €82.8b

Iberdrola Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: IBE (€13.62) is trading above our estimate of fair value (€12.05)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IBE. This is calculated by dividing IBE's market cap by their current earnings.
What is IBE's PE Ratio?
PE Ratio12.8x
Earnings€6.45b
Market Cap€82.79b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IBE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16x
VER VERBUND
15.7x-11.9%€26.9b
EVN EVN
7.4x-7.7%€4.5b
DUK Duke Energy
20.5x7.7%US$88.6b
SO Southern
20.5x5.5%US$96.0b
IBE Iberdrola
12.8x-2.6%€82.8b

Price-To-Earnings vs Peers: IBE is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does IBE's PE Ratio compare vs other companies in the European Electric Utilities Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IBE 12.8xIndustry Avg. 12.7xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IBE is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the European Electric Utilities industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is IBE'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.

IBE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.8x
Fair PE Ratio11.6x

Price-To-Earnings vs Fair Ratio: IBE is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (11.6x).

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 IBE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€13.52
€13.96
+3.2%
10.1%€16.00€9.60n/a22
Nov ’25€13.82
€13.93
+0.8%
10.5%€16.00€9.33n/a21
Oct ’25€13.91
€13.49
-3.0%
10.9%€15.50€9.33n/a22
Sep ’25€12.86
€12.86
+0.07%
9.8%€15.30€9.33n/a22
Aug ’25€12.22
€12.83
+5.0%
9.8%€15.30€9.33n/a22
Jul ’25€12.27
€12.72
+3.7%
9.0%€14.50€9.60n/a22
Jun ’25€12.07
€12.62
+4.6%
8.5%€14.50€9.60n/a22
May ’25€11.67
€12.58
+7.8%
8.8%€14.50€9.50n/a22
Apr ’25€11.67
€12.37
+6.0%
8.1%€14.40€9.50n/a22
Mar ’25€10.59
€12.25
+15.7%
6.9%€13.80€9.50n/a22
Feb ’25€11.03
€12.28
+11.3%
7.6%€13.80€9.24n/a23
Jan ’25€11.89
€12.20
+2.7%
7.3%€13.80€9.40n/a23
Dec ’24€11.38
€12.14
+6.7%
7.6%€13.80€9.40n/a23
Nov ’24€10.43
€12.13
+16.3%
7.5%€13.80€9.40€13.8223
Oct ’24€10.66
€12.40
+16.3%
7.2%€13.80€9.40€13.9123
Sep ’24€10.96
€12.37
+12.8%
7.2%€13.80€9.40€12.8624
Aug ’24€11.44
€12.38
+8.3%
7.4%€13.80€9.40€12.2224
Jul ’24€11.94
€12.21
+2.3%
8.3%€13.80€9.40€12.2724
Jun ’24€11.50
€11.98
+4.2%
8.9%€13.80€9.40€12.0724
May ’24€11.91
€11.97
+0.5%
8.8%€13.80€9.40€11.6724
Apr ’24€11.43
€11.79
+3.2%
7.3%€13.70€10.00€11.6725
Mar ’24€10.70
€11.70
+9.3%
7.7%€13.70€10.00€10.5924
Feb ’24€10.73
€11.68
+8.8%
7.7%€13.70€10.00€11.0324
Jan ’24€11.01
€11.75
+6.7%
9.3%€14.10€9.50€11.8923
Dec ’23€10.91
€11.70
+7.2%
9.1%€14.10€9.50€11.3823
Nov ’23€10.28
€11.76
+14.4%
9.0%€14.10€9.50€10.4323

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

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