RWE Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Discounted Cash Flow
Simply Wall St
CHF 27.82
Fair Value
4.7% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: RWE (CHF26.52) is trading below our estimate of fair value (CHF27.82)

Significantly Below Fair Value: RWE is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RWE. This is calculated by dividing RWE's market cap by their current earnings.
What is RWE's PE Ratio?
PE Ratio7.4x
Earnings€2.82b
Market Cap€20.78b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15x
BKW BKW
16.2x4.2%CHF 8.1b
1816 CGN Power
10.7x6.3%HK$177.9b
601985 China National Nuclear Power
17.4x10.4%CN¥178.1b
600886 SDIC Power Holdings
15.6x9.6%CN¥113.1b
RWE RWE
7.4x-6.2%CHF 20.8b

Price-To-Earnings vs Peers: RWE is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (15x).


Price to Earnings Ratio vs Industry

How does RWE's PE Ratio compare vs other companies in the European Renewable Energy Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
RWE 7.4xIndustry Avg. 15.7xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RWE is good value based on its Price-To-Earnings Ratio (7.4x) compared to the European Renewable Energy industry average (15.7x).


Price to Earnings Ratio vs Fair Ratio

What is RWE'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.

RWE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.4x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: RWE is good value based on its Price-To-Earnings Ratio (7.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).


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 RWE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 26.52
CHF 40.41
+52.3%
9.8%CHF 46.96CHF 32.12n/a17
Jan ’26CHF 26.70
CHF 40.10
+50.2%
9.8%CHF 46.47CHF 31.79n/a17
Dec ’25CHF 29.54
CHF 40.54
+37.3%
10.8%CHF 48.83CHF 31.81n/a17
Nov ’25CHF 28.23
CHF 41.73
+47.8%
10.3%CHF 49.31CHF 32.12n/a17
Oct ’25CHF 30.72
CHF 41.45
+34.9%
11.5%CHF 49.18CHF 32.04n/a18
Sep ’25CHF 30.85
CHF 42.50
+37.8%
11.4%CHF 49.86CHF 32.48n/a18
Aug ’25CHF 32.83
CHF 43.66
+33.0%
13.4%CHF 56.86CHF 32.68n/a18
Jul ’25CHF 31.82
CHF 44.34
+39.3%
12.7%CHF 57.12CHF 32.83n/a18
Jun ’25CHF 34.22
CHF 45.65
+33.4%
13.1%CHF 58.84CHF 33.82n/a18
May ’25CHF 32.51
CHF 45.25
+39.2%
13.2%CHF 58.39CHF 33.56n/a18
Apr ’25CHF 30.68
CHF 45.63
+48.7%
11.8%CHF 57.62CHF 34.86n/a18
Mar ’25CHF 29.76
CHF 47.36
+59.2%
13.3%CHF 56.87CHF 34.41n/a18
Feb ’25CHF 32.00
CHF 48.52
+51.6%
8.6%CHF 55.51CHF 40.12n/a18
Jan ’25CHF 38.14
CHF 49.93
+30.9%
8.6%CHF 56.72CHF 40.65CHF 26.7018
Dec ’24CHF 37.74
CHF 48.81
+29.3%
8.3%CHF 55.31CHF 40.65CHF 29.5418
Nov ’24CHF 34.88
CHF 49.32
+41.4%
7.2%CHF 56.00CHF 41.16CHF 28.2318
Oct ’24CHF 34.01
CHF 50.36
+48.1%
5.8%CHF 56.10CHF 43.16CHF 30.7218
Sep ’24CHF 36.59
CHF 50.84
+38.9%
6.2%CHF 57.50CHF 43.13CHF 30.8519
Aug ’24CHF 37.36
CHF 50.05
+34.0%
5.8%CHF 57.25CHF 45.80CHF 32.8319
Jul ’24CHF 39.20
CHF 51.09
+30.3%
5.2%CHF 57.20CHF 46.94CHF 31.8219
Jun ’24CHF 37.75
CHF 50.63
+34.1%
4.9%CHF 57.04CHF 46.80CHF 34.2218
May ’24CHF 40.86
CHF 50.69
+24.1%
4.8%CHF 55.15CHF 45.80CHF 32.5119
Apr ’24n/a
CHF 50.10
0%
5.6%CHF 55.41CHF 44.53CHF 30.6818
Mar ’24n/a
CHF 51.53
0%
6.4%CHF 58.56CHF 44.67CHF 29.7617
Feb ’24CHF 42.10
CHF 52.18
+23.9%
6.3%CHF 59.06CHF 45.04CHF 32.0017
Jan ’24n/a
CHF 50.64
0%
8.2%CHF 58.28CHF 40.50CHF 38.1417
Analyst Price Target
Consensus Narrative from 17 Analysts
CHF 40.56
Fair Value
34.6% undervalued intrinsic discount
17
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/10 09:27
End of Day Share Price 2025/01/10 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

RWE Aktiengesellschaft is covered by 53 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Juan RodriguezAlphaValue
Borja Pagoaga SoraluceBanco BPI, S.A.
Jorge González SadornilBanco de Sabadell. S.A.