EDP Renováveis, S.A.

DB:EDW Stock Report

Market Cap: €11.4b

EDP Renováveis Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EDW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EDW (€11.04) is trading above our estimate of fair value (€3.3)

Significantly Below Fair Value: EDW is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As EDW is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for EDW. This is calculated by dividing EDW's market cap by their current revenue.
What is EDW's PS Ratio?
PS Ratio5.6x
Sales€2.04b
Market Cap€11.43b

Price to Sales Ratio vs Peers

How does EDW's PS Ratio compare to its peers?

The above table shows the PS ratio for EDW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.2x
ECV Encavis
6.1x8.4%€2.8b
HRPK 7C Solarparken
2.4x2.2%€156.6m
TION Tion Renewables
4.4xn/a€149.0m
TION Tion Renewables
4.1xn/a€139.5m
EDW EDP Renováveis
5.6x10.6%€11.4b

Price-To-Sales vs Peers: EDW is expensive based on its Price-To-Sales Ratio (5.6x) compared to the peer average (4.3x).

Price to Sales Ratio vs Industry

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

13 CompaniesPrice / SalesEstimated GrowthMarket Cap
EDW 5.6xIndustry Avg. 2.6xNo. of Companies13PS0246810+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: EDW is expensive based on its Price-To-Sales Ratio (5.6x) compared to the European Renewable Energy industry average (2.6x).

Price to Sales Ratio vs Fair Ratio

What is EDW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EDW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.6x
Fair PS Ratio2.4x

Price-To-Sales vs Fair Ratio: EDW is expensive based on its Price-To-Sales Ratio (5.6x) compared to the estimated Fair Price-To-Sales Ratio (2.4x).

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 EDW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€11.04
€15.54
+40.8%
12.4%€19.00€10.00n/a21
Nov ’25€12.47
€16.42
+31.7%
11.6%€19.00€10.50n/a21
Oct ’25€15.68
€16.50
+5.2%
11.4%€19.00€10.50n/a22
Sep ’25€14.07
€16.31
+15.9%
11.1%€19.00€10.50n/a22
Aug ’25€14.13
€16.78
+18.8%
17.1%€27.00€10.50n/a22
Jul ’25€13.32
€17.06
+28.1%
17.6%€27.00€10.00n/a22
Jun ’25€14.63
€17.45
+19.3%
21.4%€27.50€9.50n/a22
May ’25€13.07
€17.64
+35.0%
22.2%€27.50€10.50n/a22
Apr ’25€12.87
€18.01
+39.9%
21.7%€27.50€10.50n/a22
Mar ’25€13.09
€19.19
+46.7%
18.3%€27.50€12.50n/a22
Feb ’25€14.98
€20.08
+34.0%
14.3%€27.50€15.50n/a22
Jan ’25€18.46
€20.53
+11.2%
13.6%€27.50€16.00n/a22
Dec ’24€16.71
€20.48
+22.6%
13.7%€27.50€16.00n/a22
Nov ’24€14.99
€20.75
+38.5%
13.8%€27.50€16.00€12.4722
Oct ’24€15.17
€21.58
+42.3%
12.8%€27.50€18.50€15.6822
Sep ’24€16.87
€21.84
+29.5%
12.7%€27.50€18.50€14.0723
Aug ’24€17.33
€22.18
+28.0%
12.2%€27.50€18.50€14.1323
Jul ’24€18.25
€22.62
+23.9%
12.0%€27.50€18.50€13.3223
Jun ’24€18.85
€22.85
+21.2%
11.8%€27.50€18.50€14.6322
May ’24€19.93
€23.10
+15.9%
11.7%€27.50€18.50€13.0722
Apr ’24€20.63
€23.14
+12.1%
11.4%€27.50€18.50€12.8724
Mar ’24€19.33
€23.31
+20.6%
11.9%€28.00€18.50€13.0924
Feb ’24€19.99
€23.40
+17.1%
11.3%€28.00€18.80€14.9824
Jan ’24€20.65
€23.61
+14.3%
10.3%€28.00€18.80€18.4624
Dec ’23€21.88
€23.63
+8.0%
9.8%€28.00€18.80€16.7123
Nov ’23€21.00
€23.63
+12.5%
9.8%€28.00€18.80€14.9923

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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