We’ve recently updated our valuation analysis.

Iberdrola Valuation

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

[object Object] Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

IBE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA10.1x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IBE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.9x
ELE Endesa
11.7x-0.4%€19.0b
ANA Acciona
25.5x11.8%€9.8b
RED Red Eléctrica Corporación
13.5x-8.1%€9.2b
NTGY Naturgy Energy Group
17x-3.3%€25.7b
IBE Iberdrola
15.2x6.4%€68.0b

Price-To-Earnings vs Peers: IBE is good value based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (16.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.6%
n/an/an/a

Price-To-Earnings vs Industry: IBE is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the European Electric Utilities industry average (8.9x)


Price to Earnings Ratio vs Fair Ratio

What is IBE'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.

IBE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio22.5x

Price-To-Earnings vs Fair Ratio: IBE is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (22.5x).


Share Price vs Fair Value

What is the Fair Price of IBE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IBE (€10.85) is trading above our estimate of fair value (€6.56)

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


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 IBE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€10.85
€11.70
+7.8%
9.1%€14.10€9.50n/a23
Nov ’23€10.27
€11.76
+14.5%
9.0%€14.10€9.50n/a23
Oct ’23€9.58
€12.02
+25.4%
8.6%€14.10€10.00n/a23
Sep ’23€10.51
€11.97
+13.9%
8.5%€14.00€10.00n/a24
Aug ’23€10.42
€11.98
+15.0%
8.5%€14.00€10.00n/a24
Jul ’23€10.34
€12.00
+16.1%
8.6%€14.00€10.00n/a24
Jun ’23€10.85
€11.87
+9.5%
8.4%€14.00€10.00n/a24
May ’23€11.01
€11.80
+7.1%
8.4%€14.20€10.00n/a25
Apr ’23€9.91
€11.72
+18.2%
8.3%€14.20€10.00n/a25
Mar ’23€9.55
€11.77
+23.2%
8.6%€14.20€10.00n/a25
Feb ’23€10.21
€11.79
+15.4%
9.1%€14.20€10.00n/a26
Jan ’23€10.41
€11.62
+11.6%
9.3%€14.20€9.20n/a27
Dec ’22€10.06
€11.62
+15.5%
9.0%€14.20€9.20€10.9225
Nov ’22€10.30
€11.56
+12.2%
9.7%€14.20€9.20€10.2725
Oct ’22€8.73
€11.71
+34.1%
11.8%€14.10€9.00€9.5825
Sep ’22€10.59
€11.79
+11.4%
13.4%€14.70€8.10€10.5125
Aug ’22€10.16
€11.80
+16.2%
13.5%€14.70€8.10€10.4225
Jul ’22€10.36
€12.09
+16.7%
14.5%€16.30€8.30€10.3425
Jun ’22€10.92
€12.09
+10.7%
14.5%€16.30€8.60€10.8526
May ’22€11.24
€11.84
+5.4%
13.9%€16.30€8.60€11.0127
Apr ’22€11.04
€11.79
+6.9%
14.2%€16.30€8.60€9.9127
Mar ’22€10.41
€11.86
+14.0%
14.5%€16.30€8.60€9.5525
Feb ’22€11.28
€11.71
+3.9%
14.8%€16.30€8.60€10.2124
Jan ’22€11.70
€11.34
-3.1%
10.7%€13.50€8.60€10.4125
Dec ’21€11.33
€11.26
-0.5%
10.4%€13.00€8.60€10.0625

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


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