Powell Industries Valuation

Is PW2 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 PW2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PW2 (€259.8) is trading above our estimate of fair value (€136.28)

Significantly Below Fair Value: PW2 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PW2?

Key metric: As PW2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PW2. This is calculated by dividing PW2's market cap by their current earnings.
What is PW2's PE Ratio?
PE Ratio	23.2x
Earnings	US$149.85m
Market Cap	US$3.48b

PW2 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/Revenue	3.1x
Enterprise Value/EBITDA	16.8x
PEG Ratio	3.4x

Price to Earnings Ratio vs Peers

How does PW2's PE Ratio compare to its peers?

The above table shows the PE ratio for PW2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	56.7x
F3C SFC Energy	12.8x	4.2%	€297.6m
SGL SGL Carbon	7.3x	17.7%	€497.0m
OSR OSRAM Licht	80.9x	n/a	€4.8b
NDX1 Nordex	126x	63.7%	€2.8b
PW2 Powell Industries	23.2x	6.8%	€3.5b

Price-To-Earnings vs Peers: PW2 is good value based on its Price-To-Earnings Ratio (23.2x) compared to the peer average (56.8x).

Price to Earnings Ratio vs Industry

How does PW2's PE Ratio compare vs other companies in the European Electrical Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: PW2 is expensive based on its Price-To-Earnings Ratio (23.2x) compared to the European Electrical industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is PW2'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.

PW2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.2x
Fair PE Ratio	19.5x

Price-To-Earnings vs Fair Ratio: PW2 is expensive based on its Price-To-Earnings Ratio (23.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.5x).

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 PW2 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€259.80	€205.68 -20.8%	3.4%	€212.74	€198.62	n/a	2
Nov ’25	€236.00	€175.67 -25.6%	7.0%	€187.94	€163.39	n/a	2
Oct ’25	€199.70	€175.67 -12.0%	7.0%	€187.94	€163.39	n/a	2
Jun ’24	€53.50	€33.92 -36.6%	25.3%	€42.51	€25.33	€192.80	2
May ’24	€36.40	€29.13 -20.0%	12.5%	€32.77	€25.49	€139.30	2
Apr ’24	€38.00	€29.13 -23.3%	12.5%	€32.77	€25.49	€131.00	2
Mar ’24	€42.00	€29.13 -30.6%	12.5%	€32.77	€25.49	€172.00	2
Feb ’24	€36.40	€29.13 -20.0%	12.5%	€32.77	€25.49	€109.00	2
Jan ’24	€32.80	€28.90 -11.9%	8.2%	€31.26	€26.53	€80.50	2

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Heidelberger Druckmaschinen

€279.4m

Manufactures, sells, and deals in printing presses and other print media industry products in Europe, the Middle East, Africa, the Asia Pacific, and the Americas.

HDD

€0.92

-3.0%

-26.4%

Stabilus

€822.5m

Engages in the manufacture and sale of gas springs, dampers, vibration isolation products, and electric tailgate opening and closing equipment in Europe, the Middle East, Africa, North and South America, the Asia-Pacific, and internationally.

STM

€33.30

-3.5%

-41.9%

Kajima

JP¥1.3t

Engages in civil engineering, building construction, real estate development, architectural design, and other businesses worldwide.

KAJ

JP¥16.50

0.6%

16.2%