Neoenergia Valuation
Is 2Q40 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation 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 2Q40 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 2Q40 (€12.7) is trading below our estimate of fair value (€84.23)
Significantly Below Fair Value: 2Q40 is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 2Q40?
Key metric: As 2Q40 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is 2Q40's PE Ratio? | |
|---|---|
| PE Ratio | 6.4x |
| Earnings | R$3.76b |
| Market Cap | R$24.20b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.5x |
| Enterprise Value/EBITDA | 5.5x |
| PEG Ratio | 2.5x |
Price to Earnings Ratio vs Peers
How does 2Q40's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 25.5x | ||
LEC Lechwerke | 25.9x | n/a | €2.5b |
EBK EnBW Energie Baden-Württemberg | 28.3x | n/a | €17.0b |
MNV6 Mainova | 33.7x | n/a | €1.9b |
WWG Gelsenwasser | 14.2x | n/a | €1.8b |
2Q40 Neoenergia | 6.4x | 2.6% | €24.2b |
Price-To-Earnings vs Peers: 2Q40 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (25.6x).
Price to Earnings Ratio vs Industry
How does 2Q40's PE Ratio compare vs other companies in the European Electric Utilities Industry?
| 2 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 2 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: 2Q40 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the European Electric Utilities industry average (12.7x).
Price to Earnings Ratio vs Fair Ratio
What is 2Q40'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 6.4x |
| Fair PE Ratio | 18.3x |
Price-To-Earnings vs Fair Ratio: 2Q40 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).
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.
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