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RWE Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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.

Below Fair Value: RWE (CHF38) is trading above our estimate of fair value (CHF19.4)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RWE. This is calculated by dividing RWE's market cap by their current revenue.
What is RWE's PS Ratio?
PS Ratio0.7x
Sales€38.27b
Market Cap€26.42b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.4x
BKW BKW
1.8x1.6%CHF 8.3b
NTPC NTPC
1.7x5.2%₹3.2t
UN0 Uniper
0.2x5.6%€19.0b
GULF Gulf Energy Development
5.8x2.9%฿698.1b
RWE RWE
0.7x8.5%CHF 26.4b

Price-To-Sales vs Peers: RWE is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (7.9x).


Price to Sales Ratio vs Industry

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

13 CompaniesPrice / SalesEstimated GrowthMarket Cap
RWE 0.7xIndustry Avg. 2.4xNo. of Companies13PS0246810+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RWE is good value based on its Price-To-Sales Ratio (0.7x) compared to the European Renewable Energy industry average (2.6x).


Price to Sales Ratio vs Fair Ratio

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

RWE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: RWE is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).


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
Currentn/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Jan ’26n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Dec ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Nov ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Oct ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Sep ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Aug ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Jul ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Jun ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
May ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Apr ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Mar ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Feb ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Jan ’25n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Dec ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Nov ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Oct ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Sep ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Aug ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Jul ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Jun ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
May ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Apr ’24CHF 24.87
CHF 51.26
+106.1%
6.6%CHF 58.27CHF 44.45n/a16
Mar ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Feb ’24n/a
CHF 51.26
0%
6.6%CHF 58.27CHF 44.45n/a16
Jan ’24CHF 38.00
CHF 50.64
+33.3%
8.2%CHF 58.28CHF 40.50n/a17

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


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/01/09 10:04
End of Day Share Price 2023/01/09 00:00
Earnings2022/09/30
Annual Earnings2021/12/31

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 52 analysts. 10 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.