Capital Power Corporation

DB:2CP Stock Report

Market Cap: €5.4b

Capital Power Valuation

Is 2CP 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-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 2CP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2CP (€41) is trading below our estimate of fair value (€132.39)

Significantly Below Fair Value: 2CP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2CP?

Key metric: As 2CP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2CP. This is calculated by dividing 2CP's market cap by their current earnings.
What is 2CP's PE Ratio?
PE Ratio15.6x
EarningsCA$520.00m
Market CapCA$7.99b

Price to Earnings Ratio vs Peers

How does 2CP's PE Ratio compare to its peers?

The above table shows the PE ratio for 2CP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.4x
RWE RWE
8.1x-11.1%€22.9b
AB9 ABO Energy GmbH KGaA
10.9x11.6%€323.7m
MVV1 MVV Energie
12.3xn/a€2.0b
LEC Lechwerke
26.1xn/a€2.5b
2CP Capital Power
15.6x-10.6%€8.0b

Price-To-Earnings vs Peers: 2CP is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (14.4x).

Price to Earnings Ratio vs Industry

How does 2CP's PE Ratio compare vs other companies in the European Renewable Energy Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2CP 15.6xIndustry Avg. 16.1xNo. of Companies8PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2CP is good value based on its Price-To-Earnings Ratio (15.6x) compared to the European Renewable Energy industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is 2CP'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.

2CP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.6x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: 2CP is good value based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

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 2CP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€41.00
€36.85
-10.1%
10.8%€41.01€26.46n/a10
Nov ’25€37.20
€36.78
-1.1%
10.8%€40.94€26.41n/a10
Oct ’25€32.60
€31.24
-4.2%
11.7%€39.63€26.42n/a10
Sep ’25€29.80
€29.97
+0.6%
8.2%€35.72€26.46n/a10
Aug ’25€28.40
€30.00
+5.6%
7.3%€35.40€26.72n/a11
Jul ’25€26.40
€28.58
+8.2%
10.4%€35.53€25.28n/a11
Jun ’25€26.20
€28.11
+7.3%
9.7%€33.91€25.09n/a11
May ’25€24.00
€28.92
+20.5%
8.3%€33.31€25.83n/a11
Apr ’25€26.00
€29.73
+14.3%
8.5%€34.60€25.78n/a11
Mar ’25€26.00
€29.93
+15.1%
8.2%€34.77€26.59n/a11
Feb ’25€25.40
€29.87
+17.6%
7.9%€35.11€26.16n/a10
Jan ’25€25.40
€30.53
+20.2%
6.9%€34.76€27.26n/a10
Dec ’24€24.80
€30.17
+21.7%
7.8%€35.53€26.82n/a10
Nov ’24€24.20
€31.52
+30.3%
7.4%€35.50€27.30€37.2011
Oct ’24€26.80
€33.82
+26.2%
5.6%€37.46€30.52€32.6012
Sep ’24€27.60
€33.52
+21.4%
6.9%€38.69€29.86€29.8013
Aug ’24€28.00
€34.92
+24.7%
6.0%€39.27€32.38€28.4013
Jul ’24€29.40
€35.65
+21.3%
5.7%€40.12€32.51€26.4013
Jun ’24€31.00
€35.66
+15.0%
5.1%€39.89€33.02€26.2013
May ’24€29.20
€34.52
+18.2%
4.4%€38.35€32.30€24.0013
Apr ’24€28.40
€34.68
+22.1%
4.5%€38.64€32.54€26.0013
Mar ’24€28.60
€35.84
+25.3%
4.3%€39.32€34.49€26.0013
Feb ’24€30.40
€35.86
+18.0%
4.0%€39.05€34.25€25.4013
Jan ’24€32.20
€36.59
+13.6%
4.6%€39.87€34.97€25.4013
Dec ’23€33.40
€37.88
+13.4%
5.4%€41.41€35.49€24.8013
Nov ’23€33.00
€37.89
+14.8%
4.8%€41.61€35.66€24.2013

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

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