Centrica plc

DB:CENB Stock Report

Market Cap: €7.4b

Centrica Valuation

Is CENB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: CENB (€1.45) is trading below our estimate of fair value (€2.29)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CENB. This is calculated by dividing CENB's market cap by their current earnings.
What is CENB's PE Ratio?
PE Ratio5.6x
EarningsUK£1.10b
Market CapUK£6.18b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CENB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.1x
MVV1 MVV Energie
12.1xn/a€2.0b
MNV6 Mainova
33.1xn/a€1.9b
EOAN E.ON
16.8x8.9%€30.2b
WWG Gelsenwasser
14.3xn/a€1.7b
CENB Centrica
5.6x-10.8%€6.2b

Price-To-Earnings vs Peers: CENB is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (19.1x).

Price to Earnings Ratio vs Industry

How does CENB's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CENB 5.6xIndustry Avg. 17.5xNo. of Companies8PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CENB is good value based on its Price-To-Earnings Ratio (5.6x) compared to the Global Integrated Utilities industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is CENB'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.

CENB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.6x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: CENB is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).

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 CENB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.45
€2.01
+38.5%
12.2%€2.52€1.56n/a15
Nov ’25€1.40
€2.01
+44.3%
12.2%€2.52€1.56n/a15
Oct ’25€1.40
€2.04
+46.1%
12.1%€2.52€1.56n/a15
Sep ’25€1.51
€2.02
+33.6%
10.2%€2.45€1.69n/a15
Aug ’25€1.57
€2.05
+30.9%
10.3%€2.49€1.72n/a15
Jul ’25€1.62
€2.04
+26.1%
11.0%€2.47€1.71n/a14
Jun ’25€1.64
€2.02
+23.3%
12.7%€2.47€1.53n/a14
May ’25€1.53
€2.00
+30.6%
14.2%€2.46€1.52n/a14
Apr ’25€1.50
€2.02
+34.3%
13.5%€2.45€1.52n/a14
Mar ’25€1.50
€2.03
+35.4%
12.7%€2.45€1.63n/a15
Feb ’25€1.61
€2.12
+31.6%
14.4%€2.70€1.64n/a16
Jan ’25€1.62
€2.08
+28.8%
13.3%€2.49€1.62n/a16
Dec ’24€1.72
€2.05
+19.5%
14.3%€2.47€1.61n/a16
Nov ’24€1.80
€2.05
+13.9%
14.3%€2.47€1.61€1.4016
Oct ’24€1.85
€2.02
+9.1%
15.5%€2.48€1.56€1.4015
Sep ’24€1.83
€1.98
+8.3%
15.7%€2.48€1.56€1.5115
Aug ’24€1.60
€1.81
+13.5%
17.1%€2.50€1.28€1.5715
Jul ’24€1.43
€1.69
+18.4%
12.1%€2.04€1.28€1.6215
Jun ’24€1.36
€1.64
+20.7%
11.6%€1.98€1.28€1.6415
May ’24€1.30
€1.57
+20.7%
12.2%€1.87€1.25€1.5315
Apr ’24€1.20
€1.57
+30.5%
12.9%€1.87€1.25€1.5015
Mar ’24€1.20
€1.50
+24.7%
20.7%€1.88€0.57€1.5014
Feb ’24€1.14
€1.50
+31.3%
20.5%€1.94€0.57€1.6115
Jan ’24€1.08
€1.43
+32.3%
22.3%€1.88€0.57€1.6214
Dec ’23€1.12
€1.41
+26.2%
24.7%€1.91€0.58€1.7215
Nov ’23€0.89
€1.36
+54.0%
25.5%€1.86€0.58€1.8015

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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