Iberdrola (BME:IBE) Valuation Check After €170m Boost for New Energy Storage Projects

Iberdrola (BME:IBE) just secured 170 million € in grants to accelerate a suite of energy storage projects, ranging from large scale batteries to pumped storage upgrades, putting its grid flexibility strategy firmly in the spotlight.

See our latest analysis for Iberdrola.

That backdrop helps explain why, despite a slightly softer week, Iberdrola’s year to date share price return of 31.19 percent and 1 year total shareholder return of 39.64 percent signal building momentum as the market leans into its grid and storage growth story.

If this kind of clean energy push has your attention, it could be a good moment to explore fast growing stocks with high insider ownership for other under the radar growth ideas with conviction behind them.

Yet with the shares trading close to analyst targets and a strong multiyear run already behind them, investors now face a tougher question: Is Iberdrola still mispriced, or is future growth already fully baked in?

Most Popular Narrative Narrative: 4.4% Overvalued

With Iberdrola last closing at €17.82 against a narrative fair value of about €17.06, expectations are finely balanced as growth assumptions do the heavy lifting.

A multi-year pipeline of large offshore wind and renewable projects in the US, UK, and continental Europe, backed by supportive government policies and long-term power purchase agreements, underpins forward-looking growth in clean generation capacity and future revenues. The electrification of transport, heating, and industrial sectors in both Europe and the US is expected to steadily raise electricity demand over the next decade. This expands Iberdrola's addressable market and enhances long-term top-line and EBITDA growth prospects.

Read the complete narrative.

Curious how steady revenue growth, rising profit margins and a richer future earnings multiple can still yield only a modest upside signal? Want to see the full playbook?

Result: Fair Value of $17.06 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent regulatory uncertainty in key markets and heavier dependence on capital markets could quickly undermine today’s growth assumptions and valuation confidence.

Find out about the key risks to this Iberdrola narrative.

Build Your Own Iberdrola Narrative

If you see the story differently or simply want to dig into the numbers yourself, you can build a tailored thesis in just a few minutes: Do it your way.

A great starting point for your Iberdrola research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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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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