HK Electric Investments and HK Electric Investments Limited

DB:HKT Stock Report

Market Cap: €5.7b

HK Electric Investments and HK Electric Investments Valuation

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

Below Fair Value: HKT (€0.63) is trading below our estimate of fair value (€3.45)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HKT. This is calculated by dividing HKT's market cap by their current earnings.
What is HKT's PE Ratio?
PE Ratio14.8x
EarningsHK$3.12b
Market CapHK$46.12b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HKT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.6x
LEC Lechwerke
25.9xn/a€2.5b
EBK EnBW Energie Baden-Württemberg
28.5xn/a€17.1b
MNV6 Mainova
33.7xn/a€1.9b
WWG Gelsenwasser
14.2xn/a€1.8b
HKT HK Electric Investments and HK Electric Investments
14.8x4.3%€46.1b

Price-To-Earnings vs Peers: HKT is good value based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (25.6x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HKT 14.8xIndustry Avg. 12.7xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HKT is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the European Electric Utilities industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is HKT'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.

HKT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.8x
Fair PE Ratio17.5x

Price-To-Earnings vs Fair Ratio: HKT is good value based on its Price-To-Earnings Ratio (14.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.5x).

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 HKT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.63
€0.78
+23.0%
6.0%€0.86€0.71n/a6
Nov ’25€0.62
€0.75
+21.0%
6.0%€0.82€0.68n/a6
Oct ’25€0.60
€0.73
+20.3%
7.7%€0.82€0.63n/a7
Sep ’25€0.61
€0.73
+19.1%
7.7%€0.82€0.63n/a7
Aug ’25€0.63
€0.70
+10.6%
6.4%€0.75€0.64n/a7
Jul ’25€0.58
€0.70
+19.7%
6.6%€0.75€0.64n/a7
Jun ’25€0.56
€0.70
+23.7%
6.6%€0.75€0.64n/a7
May ’25€0.55
€0.69
+24.0%
6.5%€0.75€0.64n/a6
Apr ’25€0.57
€0.69
+20.3%
6.5%€0.75€0.64n/a6
Mar ’25€0.56
€0.70
+24.0%
5.7%€0.76€0.64n/a5
Feb ’25€0.57
€0.68
+20.2%
6.2%€0.75€0.63n/a4
Jan ’25€0.54
€0.65
+20.9%
12.7%€0.75€0.52n/a4
Dec ’24€0.52
€0.65
+24.7%
12.7%€0.75€0.52n/a4
Nov ’24€0.52
€0.64
+23.2%
14.6%€0.74€0.52€0.623
Oct ’24€0.54
€0.64
+19.0%
14.6%€0.74€0.52€0.603
Sep ’24€0.53
€0.64
+20.5%
14.6%€0.74€0.52€0.613
Aug ’24€0.56
€0.74
+32.6%
24.1%€1.00€0.52€0.634
Jul ’24€0.54
€0.75
+37.5%
22.3%€0.99€0.53€0.584
Jun ’24€0.56
€0.75
+34.4%
22.3%€0.99€0.53€0.564
May ’24€0.57
€0.75
+31.9%
22.3%€0.99€0.53€0.554
Apr ’24€0.57
€0.79
+38.8%
21.0%€1.00€0.54€0.575
Mar ’24€0.60
€0.81
+34.3%
21.5%€1.04€0.54€0.565
Feb ’24€0.63
€0.81
+29.0%
21.5%€1.04€0.54€0.575
Jan ’24€0.63
€0.84
+32.6%
21.2%€1.06€0.55€0.545
Dec ’23€0.69
€0.84
+22.2%
21.2%€1.06€0.55€0.525
Nov ’23€0.64
€0.93
+46.4%
19.9%€1.12€0.59€0.525

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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