RWE Aktiengesellschaft

DB:RWE Stock Report

Market Cap: €23.1b

RWE Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: RWE (€31.11) is trading above our estimate of fair value (€29.92)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RWE. This is calculated by dividing RWE's market cap by their current earnings.
What is RWE's PE Ratio?
PE Ratio8.2x
Earnings€2.82b
Market Cap€23.05b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.4x
EOAN E.ON
17.5x8.9%€31.4b
EBK EnBW Energie Baden-Württemberg
28.5xn/a€17.1b
AB9 ABO Energy GmbH KGaA
11.8x11.6%€351.3m
1816 CGN Power
11.8x6.7%HK$202.2b
RWE RWE
8.2x-10.8%€23.1b

Price-To-Earnings vs Peers: RWE is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (17.4x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
RWE 8.2xIndustry Avg. 16.6xNo. of Companies8PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RWE is good value based on its Price-To-Earnings Ratio (8.2x) compared to the European Renewable Energy industry average (16.5x).

Price to Earnings Ratio vs Fair Ratio

What is RWE'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.

RWE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio16x

Price-To-Earnings vs Fair Ratio: RWE is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (16x).

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 RWE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€31.11
€43.61
+40.2%
10.9%€52.50€34.20n/a17
Nov ’25€29.85
€44.44
+48.9%
10.3%€52.50€34.20n/a17
Oct ’25€32.31
€44.25
+36.9%
11.5%€52.50€34.20n/a18
Sep ’25€32.60
€44.75
+37.3%
11.4%€52.50€34.20n/a18
Aug ’25€34.13
€45.69
+33.9%
13.4%€59.50€34.20n/a18
Jul ’25€32.64
€46.19
+41.5%
12.7%€59.50€34.20n/a18
Jun ’25€34.93
€46.16
+32.2%
13.1%€59.50€34.20n/a18
May ’25€32.71
€46.11
+41.0%
13.2%€59.50€34.20n/a18
Apr ’25€31.50
€47.12
+49.6%
11.8%€59.50€36.00n/a18
Mar ’25€30.75
€49.55
+61.1%
13.3%€59.50€36.00n/a18
Feb ’25€34.19
€52.01
+52.1%
8.6%€59.50€43.00n/a18
Jan ’25€41.08
€52.82
+28.6%
8.6%€60.00€43.00n/a18
Dec ’24€39.68
€51.62
+30.1%
8.3%€58.50€43.00n/a18
Nov ’24€36.47
€51.52
+41.3%
7.2%€58.50€43.00€29.8518
Oct ’24€35.11
€52.52
+49.6%
5.8%€58.50€45.00€32.3118
Sep ’24€37.84
€53.04
+40.2%
6.2%€60.00€45.00€32.6019
Aug ’24€38.95
€52.46
+34.7%
5.8%€60.00€48.00€34.1319
Jul ’24€39.87
€52.24
+31.0%
5.2%€58.50€48.00€32.6419
Jun ’24€39.25
€51.92
+32.3%
4.9%€58.50€48.00€34.9318
May ’24€42.50
€51.47
+21.1%
4.8%€56.00€46.50€32.7119
Apr ’24€39.64
€50.63
+27.7%
5.6%€56.00€45.00€31.5018
Mar ’24€39.13
€51.92
+32.7%
6.4%€59.00€45.00€30.7517
Feb ’24€40.88
€52.13
+27.5%
6.3%€59.00€45.00€34.1917
Jan ’24€41.73
€51.26
+22.8%
8.2%€59.00€41.00€41.0817
Dec ’23€42.51
€51.17
+20.4%
8.4%€60.00€41.00€39.6817
Nov ’23€39.29
€51.00
+29.8%
9.1%€60.00€41.00€36.4717

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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