What Recent Gains and Green Energy Momentum Mean for Acciona Stock in 2025

Thinking about what to do with Acciona stock right now? You’re not alone. After a year in which shares have blasted higher by 57.0% year-to-date and a solid 49.0% over the past 12 months, it’s clear something has shifted in how the market values this company. Those returns aren’t just flashes in the pan, either, with a cumulative gain of more than 100% over five years. This shows that long-term investors have already been handsomely rewarded as well. Even in the past week and month, gains have continued at a steady pace, up 3.7% and 4.7% respectively.

Much of this rally has played out alongside broader market optimism toward infrastructure, renewable energy, and sustainable business leaders. Investor appetite for stability and resilient earnings in sectors with long-term tailwinds has helped Acciona stand out. While these big moves can raise questions about whether a stock is getting ahead of itself, our in-depth look at valuation tells a more nuanced story. By applying six classic valuation checks, Acciona earns a value score of 4, meaning it stands out as undervalued on four out of six key measures.

If you’re wrestling with the classic question of whether to buy, sell, or hold, understanding how Acciona stacks up under different valuation lenses can really help clarify your thinking. Let’s dig into those methods first. Afterwards, I’ll share what might be an even better way to get a handle on what this company is really worth in today’s market.

Acciona delivered 49.0% returns over the last year. See how this stacks up to the rest of the Electric Utilities industry.

Approach 1: Acciona Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) approach estimates a company’s value by forecasting its future free cash flows and then discounting those expected amounts back to today’s value. This method gives a forward-looking assessment that factors in both each year’s projected growth and the risks of long-term uncertainty.

For Acciona, the current Free Cash Flow (FCF) stands at a negative €555.8 Million, reflecting recent investment-heavy years. Analysts suggest a turnaround ahead, with the FCF forecast to reach €478 Million by 2028. Looking farther out, projections indicate growth continues with FCF expected to rise above €2.5 Billion by 2035, according to Simply Wall St’s extrapolations. This would turn smaller annual losses into sizable future gains.

After discounting those future cash flows to present value using the 2 Stage Free Cash Flow to Equity model, the intrinsic value per share comes in at €480.48. This figure points to the stock trading at a hefty 63.5% discount to its calculated fair value. As a result, Acciona appears significantly undervalued based on DCF methodology.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Acciona.

Our Discounted Cash Flow (DCF) analysis suggests Acciona is undervalued by 63.5%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Acciona Price vs Earnings

Price-to-earnings (PE) is the preferred valuation multiple for profitable companies like Acciona, as it shows how much investors are willing to pay for each euro of earnings. A PE ratio provides important context when comparing returns across companies and industries. Growth expectations and risk are key here. Companies with better growth prospects or lower perceived risk often justify higher PE ratios, while slower growth or higher uncertainty generally means a lower PE makes sense.

Currently, Acciona trades at a PE of 11.50x. That is noticeably below the Electric Utilities industry average of 14.78x and also below its peer group’s average of 15.68x. On first glance, this discount might raise eyebrows. Is the market overlooking something, or is there a reason the company should be cheaper?

This is where Simply Wall St’s proprietary “Fair Ratio” comes in. The Fair Ratio for Acciona is 8.21x, calculated to reflect not just generic peer comparisons, but the company’s specific growth outlook, profit margins, industry context, size, and unique risks. This makes it a more tailored benchmark than simply comparing to industry averages, as it adjusts for what is truly relevant to Acciona’s circumstances.

Since Acciona’s actual PE of 11.50x is above its Fair Ratio of 8.21x, the shares look slightly overvalued on this basis. While the company trades at a discount to peers and the broader industry, when you adjust for growth, risks, and profitability, it may be priced a bit ahead of its fundamentals.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Acciona Narrative

Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is your personalized story for a company, connecting what you know or believe about its strategy, markets, and risks directly to key financial forecasts like future revenue, profit margins, and estimated fair value. Narratives turn the usual spreadsheet numbers into a living story, making it easier to see how your perspective stacks up against others and the current share price.

Narratives are simple to create and compare on Simply Wall St’s Community page, where millions of investors share and update their views. This helps users make smarter buy or sell calls as new information such as earnings reports or news emerges. By comparing a Narrative’s fair value to the live stock price, you can quickly spot whether the company looks under- or over-valued to you.

For example, some investors' Narratives for Acciona see €202.00 as fair value, banking on steady growth and higher margins. Others set it closer to €105.00, highlighting risks like lower energy prices and execution challenges. That is the power of Narratives: different stories and different outcomes, all grounded in how you think the future will unfold.

Do you think there's more to the story for Acciona? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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