REN - Redes Energéticas Nacionais, SGPS, S.A.

DB:RN4 Stock Report

Market Cap: €1.6b

REN - Redes Energéticas Nacionais SGPS Valuation

Is RN4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 RN4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€0.70
Fair Value
236.8% overvalued intrinsic discount
8
Number of Analysts

Below Fair Value: RN4 (€2.35) is trading above our estimate of fair value (€0.7)

Significantly Below Fair Value: RN4 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RN4?

Key metric: As RN4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RN4. This is calculated by dividing RN4's market cap by their current earnings.
What is RN4's PE Ratio?
PE Ratio11.5x
Earnings€137.22m
Market Cap€1.58b

Price to Earnings Ratio vs Peers

How does RN4's PE Ratio compare to its peers?

The above table shows the PE ratio for RN4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
MVV1 MVV Energie
11.2xn/a€2.0b
MNV6 Mainova
38.4xn/a€2.3b
WWG Gelsenwasser
13.9xn/a€1.7b
EOAN E.ON
16.6x8.3%€29.8b
RN4 REN - Redes Energéticas Nacionais SGPS
11.5x-1.6%€1.6b

Price-To-Earnings vs Peers: RN4 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

How does RN4's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
RN4 11.5xIndustry Avg. 17.1xNo. of Companies7PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RN4 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the Global Integrated Utilities industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is RN4'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.

RN4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.5x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: RN4 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).

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 RN4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.35
€2.81
+19.5%
11.8%€3.40€2.40n/a8
Jan ’26€2.25
€2.79
+24.0%
11.6%€3.40€2.40n/a8
Dec ’25€2.44
€2.76
+13.0%
11.5%€3.40€2.40n/a9
Nov ’25€2.28
€2.76
+21.2%
11.5%€3.40€2.40n/a9
Oct ’25€2.40
€2.76
+14.9%
11.5%€3.40€2.40n/a9
Sep ’25€2.35
€2.77
+18.0%
11.0%€3.40€2.40n/a10
Aug ’25€2.33
€2.77
+19.2%
11.0%€3.40€2.40n/a10
Jul ’25€2.29
€2.76
+20.9%
11.3%€3.40€2.40n/a10
Jun ’25€2.31
€2.71
+17.5%
11.4%€3.45€2.40n/a10
May ’25€2.25
€2.65
+17.9%
13.8%€3.45€2.10n/a9
Apr ’25€2.19
€2.69
+23.2%
13.5%€3.45€2.10n/a9
Mar ’25€2.22
€2.71
+22.5%
13.5%€3.45€2.10n/a9
Feb ’25€2.24
€2.75
+23.0%
13.9%€3.45€2.10€2.359
Jan ’25€2.31
€2.78
+20.5%
13.5%€3.45€2.10€2.259
Dec ’24€2.45
€2.81
+15.1%
12.9%€3.45€2.10€2.449
Nov ’24€2.46
€2.83
+15.1%
12.4%€3.45€2.10€2.289
Oct ’24€2.40
€2.83
+18.0%
12.4%€3.45€2.10€2.409
Sep ’24€2.49
€2.83
+13.7%
12.4%€3.45€2.10€2.359
Aug ’24€2.50
€2.83
+13.2%
12.4%€3.45€2.10€2.339
Jul ’24€2.49
€2.79
+12.1%
12.8%€3.45€2.10€2.299
Jun ’24€2.51
€2.82
+12.4%
13.0%€3.45€2.10€2.318
May ’24€2.65
€2.81
+6.2%
12.6%€3.40€2.10€2.258
Apr ’24€2.69
€2.78
+3.4%
11.3%€3.40€2.20€2.199
Mar ’24€2.53
€2.75
+8.7%
11.5%€3.40€2.20€2.229
Feb ’24€2.51
€2.76
+9.8%
11.6%€3.40€2.20€2.249
Analyst Price Target
Consensus Narrative from 8 Analysts
€2.78
Fair Value
15.5% undervalued intrinsic discount
8
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/31 02:39
End of Day Share Price 2025/01/31 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

REN - Redes Energéticas Nacionais, SGPS, S.A. is covered by 29 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Flora Mericia TrindadeBanco BPI, S.A.
Javier Esteban LarioBanco de Sabadell. S.A.
Bosco Muguiro EulateBanco Santander