Terna S.p.A.

DB:UEI Stock Report

Market Cap: €16.0b

Terna Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: UEI (€7.9) is trading above our estimate of fair value (€7.04)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for UEI. This is calculated by dividing UEI's market cap by their current earnings.
What is UEI's PE Ratio?
PE Ratio15.2x
Earnings€1.05b
Market Cap€15.99b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UEI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
EBK EnBW Energie Baden-Württemberg
28.5xn/a€17.1b
LEC Lechwerke
25.9xn/a€2.5b
RWE RWE
8.2x-10.8%€23.1b
EOAN E.ON
17.5x8.9%€31.4b
UEI Terna
15.2x1.4%€16.0b

Price-To-Earnings vs Peers: UEI is good value based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UEI 15.2xIndustry Avg. 12.7xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: UEI is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the European Electric Utilities industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is UEI'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.

UEI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: UEI is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).

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 UEI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€7.90
€8.33
+5.3%
6.6%€9.60€7.60n/a18
Nov ’25€7.99
€8.31
+4.0%
6.6%€9.60€7.30n/a17
Oct ’25€8.08
€8.26
+2.2%
6.7%€9.60€7.30n/a17
Sep ’25€7.81
€8.21
+5.2%
6.2%€9.40€7.30n/a17
Aug ’25€7.49
€8.20
+9.4%
6.3%€9.40€7.30n/a17
Jul ’25€7.27
€8.22
+13.1%
6.4%€9.40€7.30n/a17
Jun ’25€7.96
€8.12
+2.0%
7.3%€9.40€7.00n/a18
May ’25€7.35
€8.04
+9.3%
9.6%€9.40€6.00n/a18
Apr ’25€7.52
€8.03
+6.8%
9.7%€9.30€6.00n/a18
Mar ’25€7.26
€7.72
+6.3%
9.3%€9.30€6.00n/a18
Feb ’25€7.70
€7.71
+0.07%
9.0%€9.10€6.00n/a18
Jan ’25€7.56
€7.63
+0.9%
9.2%€9.10€6.00n/a17
Dec ’24€7.38
€7.61
+3.2%
9.4%€9.10€6.00n/a17
Nov ’24€7.19
€7.66
+6.4%
9.6%€9.10€6.00€7.9917
Oct ’24€7.11
€7.71
+8.4%
9.7%€9.10€6.00€8.0817
Sep ’24€7.61
€7.61
+0.06%
9.8%€8.50€6.00€7.8117
Aug ’24€7.60
€7.61
+0.2%
10.1%€8.50€6.00€7.4917
Jul ’24€7.62
€7.62
+0.008%
10.2%€8.60€6.00€7.2717
Jun ’24€7.71
€7.61
-1.4%
10.2%€8.60€6.00€7.9617
May ’24€7.63
€7.45
-2.3%
10.1%€8.50€6.00€7.3515
Apr ’24€7.45
€7.37
-1.1%
9.6%€8.50€6.00€7.5216
Mar ’24€6.93
€7.25
+4.6%
9.1%€8.20€6.00€7.2616
Feb ’24€7.15
€7.20
+0.7%
9.1%€8.20€6.00€7.7016
Jan ’24€6.88
€7.13
+3.6%
8.9%€8.10€6.00€7.5616
Dec ’23€7.34
€7.07
-3.7%
10.5%€8.10€5.60€7.3816
Nov ’23€6.64
€7.15
+7.6%
12.8%€9.30€5.60€7.1917

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

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