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.

Below Fair Value: RWE (€29.74) is trading below our estimate of fair value (€30.36)

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?

Other financial metrics that can be useful for relative valuation.

RWE 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/Revenue1x
Enterprise Value/EBITDA3.7x
PEG Ratio-0.4x

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 Average56.8x
AB9 ABO Energy GmbH KGaA
13.6x11.6%€405.7m
EBK EnBW Energie Baden-Württemberg
50.2xn/a€17.9b
EOAN E.ON
18.2x8.6%€32.6b
ECV Encavis
145.4x41.8%€2.8b
RWE RWE
6.4x-16.3%€22.1b

Price-To-Earnings vs Peers: RWE is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (56.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RWE is good value based on its Price-To-Earnings Ratio (6.4x) compared to the European Renewable Energy industry average (17.5x).


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 Ratio6.4x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: RWE is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).


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
Current€29.74
€44.44
+49.4%
10.3%€52.50€34.20n/a17
Oct ’25€32.31
€44.25
+36.9%
11.5%€52.50€34.20n/a18
Sep ’25€32.63
€44.75
+37.1%
11.4%€52.50€34.20n/a18
Aug ’25€34.25
€45.69
+33.4%
13.4%€59.50€34.20n/a18
Jul ’25€32.60
€46.19
+41.7%
12.7%€59.50€34.20n/a18
Jun ’25€34.84
€46.16
+32.5%
13.1%€59.50€34.20n/a18
May ’25€32.63
€46.11
+41.3%
13.2%€59.50€34.20n/a18
Apr ’25€31.46
€47.12
+49.8%
11.8%€59.50€36.00n/a18
Mar ’25€30.66
€49.55
+61.6%
13.3%€59.50€36.00n/a18
Feb ’25€33.78
€52.01
+54.0%
8.6%€59.50€43.00n/a18
Jan ’25€41.18
€52.82
+28.3%
8.6%€60.00€43.00n/a18
Dec ’24€39.75
€51.62
+29.9%
8.3%€58.50€43.00n/a18
Nov ’24€36.31
€51.52
+41.9%
7.2%€58.50€43.00€29.7418
Oct ’24€35.15
€52.52
+49.4%
5.8%€58.50€45.00€32.3118
Sep ’24€37.89
€53.04
+40.0%
6.2%€60.00€45.00€32.6319
Aug ’24€38.94
€52.46
+34.7%
5.8%€60.00€48.00€34.2519
Jul ’24€39.87
€52.24
+31.0%
5.2%€58.50€48.00€32.6019
Jun ’24€39.09
€51.92
+32.8%
4.9%€58.50€48.00€34.8418
May ’24€42.55
€51.47
+21.0%
4.8%€56.00€46.50€32.6319
Apr ’24€39.64
€50.63
+27.7%
5.6%€56.00€45.00€31.4618
Mar ’24€39.09
€51.92
+32.8%
6.4%€59.00€45.00€30.6617
Feb ’24€40.67
€52.13
+28.2%
6.3%€59.00€45.00€33.7817
Jan ’24€41.59
€51.26
+23.3%
8.2%€59.00€41.00€41.1817
Dec ’23€42.65
€51.17
+20.0%
8.4%€60.00€41.00€39.7517
Nov ’23€39.29
€51.00
+29.8%
9.1%€60.00€41.00€36.3117

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