EDP, S.A.

DB:EDP Stock Report

Market Cap: €14.3b

EDP Valuation

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

Below Fair Value: EDP (€3.44) is trading below our estimate of fair value (€4.53)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EDP. This is calculated by dividing EDP's market cap by their current earnings.
What is EDP's PE Ratio?
PE Ratio13.1x
Earnings€1.09b
Market Cap€14.28b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EDP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.9x
EBK EnBW Energie Baden-Württemberg
28.5xn/a€17.1b
LEC Lechwerke
25.8xn/a€2.5b
RWE RWE
8.2x-11.1%€23.1b
EOAN E.ON
17.4x8.9%€31.2b
EDP EDP
13.1x0.7%€14.3b

Price-To-Earnings vs Peers: EDP is good value based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
EDP 13.1xIndustry Avg. 12.7xNo. of Companies11PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EDP is expensive based on its Price-To-Earnings Ratio (13.1x) compared to the European Electric Utilities industry average (12.6x).

Price to Earnings Ratio vs Fair Ratio

What is EDP'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.

EDP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: EDP is good value based on its Price-To-Earnings Ratio (13.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

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 EDP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.44
€4.62
+34.1%
12.1%€5.95€3.70n/a20
Nov ’25€3.61
€4.81
+33.3%
10.1%€5.95€4.00n/a20
Oct ’25€4.10
€4.80
+16.8%
10.9%€5.95€3.80n/a20
Sep ’25€3.75
€4.76
+26.9%
11.6%€5.95€3.80n/a20
Aug ’25€3.85
€4.82
+25.2%
12.6%€5.95€3.80n/a20
Jul ’25€3.54
€4.86
+37.3%
12.2%€5.95€3.70n/a20
Jun ’25€3.67
€4.89
+33.3%
13.0%€5.95€3.55n/a20
May ’25€3.56
€4.96
+39.1%
13.5%€6.10€3.90n/a20
Apr ’25€3.61
€5.14
+42.4%
12.8%€6.10€3.95n/a20
Mar ’25€3.73
€5.29
+41.9%
10.3%€6.10€4.25n/a20
Feb ’25€4.14
€5.46
+32.0%
7.9%€6.10€4.65n/a20
Jan ’25€4.54
€5.60
+23.4%
11.1%€7.35€4.30n/a20
Dec ’24€4.39
€5.61
+27.7%
11.1%€7.35€4.30n/a20
Nov ’24€3.92
€5.62
+43.5%
11.4%€7.35€4.30€3.6120
Oct ’24€3.95
€5.71
+44.5%
10.1%€7.35€4.70€4.1020
Sep ’24€4.19
€5.78
+37.9%
9.5%€7.35€4.70€3.7520
Aug ’24€4.20
€5.79
+38.0%
9.1%€7.35€4.70€3.8520
Jul ’24€4.47
€5.81
+30.2%
8.2%€7.35€5.00€3.5420
Jun ’24€4.55
€5.85
+28.5%
7.7%€7.35€5.00€3.6720
May ’24€4.97
€5.87
+18.0%
7.8%€7.35€5.00€3.5619
Apr ’24€5.00
€5.81
+16.2%
8.1%€7.35€5.00€3.6119
Mar ’24€4.72
€5.83
+23.7%
8.0%€7.35€5.00€3.7321
Feb ’24€4.57
€5.80
+26.9%
8.2%€7.35€5.00€4.1421
Jan ’24€4.70
€5.80
+23.3%
8.5%€7.35€5.00€4.5421
Dec ’23€4.59
€5.80
+26.4%
8.5%€7.35€5.00€4.3921
Nov ’23€4.42
€5.80
+31.3%
8.4%€7.35€5.00€3.9221

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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