This company listing is no longer active

This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Fortum Oyj Valuation

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

Below Fair Value: FOT (€11.22) is trading below our estimate of fair value (€26.34)

Significantly Below Fair Value: FOT is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As FOT is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for FOT. This is calculated by dividing FOT's market cap by their current revenue.
What is FOT's PS Ratio?
PS Ratio	0.08x
Sales	€155.64b
Market Cap	€12.33b

FOT 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	0.1x
Enterprise Value/EBITDA	7.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for FOT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.3x
EBK EnBW Energie Baden-Württemberg	0.5x	n/a	€17.1b
LEC Lechwerke	2x	n/a	€2.5b
RWE RWE	1x	4.4%	€23.1b
PAMP Pampa Energía	1.9x	4.6%	AR$5.0t
FOT Fortum Oyj	0.08x	-8.8%	€12.3b

Price-To-Sales vs Peers: FOT is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

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

17 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.9x	2.1%
FOT Fortum Oyj	0.08x	-8.8%	US$12.06b

17 Companies		Estimated Growth	Market Cap
Industry Avg.	0.9x	2.2%
FOT Fortum Oyj	0.08x	62.9%	US$12.06b

No more companies

Price-To-Sales vs Industry: FOT is good value based on its Price-To-Sales Ratio (0.1x) compared to the European Electric Utilities industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is FOT'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.

FOT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.08x
Fair PS Ratio	0.2x

Price-To-Sales vs Fair Ratio: FOT is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Huadian Power International

HK$57.4b

Engages in the generation and sale of electricity, heat, and coal to power grid companies in the People’s Republic of China.

SHX

HK$0.41

17.7%

Sembcorp Industries

S$9.3b

An investment holding company, engages in the production and supply of utilities services, and terminalling and storage of petroleum products and chemicals in Singapore, the United Kingdom, China, India, rest of Asia, the Middle East, and internationally.

SBOA

S$3.64

5.2%

6.4%

China Resources Power Holdings

HK$91.7b

An investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People’s Republic of China.

CRP

HK$2.17

3.6%

18.5%