Redeia Corporación, S.A.

BME:RED Stock Report

Market Cap: €9.0b

Redeia Corporación Valuation

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

Below Fair Value: RED (€16.59) is trading below our estimate of fair value (€23.78)

Significantly Below Fair Value: RED is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RED. This is calculated by dividing RED's market cap by their current earnings.
What is RED's PE Ratio?
PE Ratio15.9x
Earnings€563.14m
Market Cap€8.96b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RED vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25x
ELE Endesa
19.3x8.5%€20.9b
ANA Acciona
33.5x13.8%€6.4b
IBE Iberdrola
12.8x-2.6%€82.4b
ANE Corporación Acciona Energías Renovables
34.4x14.5%€6.3b
RED Redeia Corporación
15.9x7.0%€9.0b

Price-To-Earnings vs Peers: RED is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (25x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RED 15.9xIndustry Avg. 12.6xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RED is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the European Electric Utilities industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is RED'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.

RED PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.9x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: RED is good value based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

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 RED forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€16.59
€18.15
+9.4%
7.5%€20.50€15.60n/a20
Nov ’25€17.04
€18.15
+6.5%
7.5%€20.50€15.60n/a20
Oct ’25€17.47
€18.19
+4.1%
8.6%€21.20€15.60n/a21
Sep ’25€17.18
€18.14
+5.6%
8.3%€21.20€15.60n/a21
Aug ’25€16.39
€18.14
+10.7%
8.3%€21.20€15.60n/a21
Jul ’25€16.35
€17.98
+10.0%
8.6%€21.20€15.60n/a21
Jun ’25€16.54
€17.38
+5.1%
8.8%€21.20€15.00n/a20
May ’25€15.65
€17.29
+10.5%
8.5%€21.20€15.00n/a20
Apr ’25€15.81
€17.08
+8.1%
9.1%€21.20€15.00n/a20
Mar ’25€14.73
€16.47
+11.8%
10.3%€21.20€13.50n/a20
Feb ’25€15.29
€16.37
+7.1%
10.2%€21.20€13.50n/a20
Jan ’25€14.91
€16.27
+9.1%
11.0%€21.20€13.50n/a20
Dec ’24€15.35
€16.27
+6.0%
11.0%€21.20€13.50n/a20
Nov ’24€14.83
€16.53
+11.5%
12.3%€21.20€13.50€17.0420
Oct ’24€14.90
€16.76
+12.5%
11.7%€21.20€13.50€17.4720
Sep ’24€14.96
€16.64
+11.3%
11.7%€21.20€13.50€17.1820
Aug ’24€15.06
€16.62
+10.3%
12.0%€21.20€13.50€16.3920
Jul ’24€15.39
€16.84
+9.5%
11.6%€21.20€13.50€16.3519
Jun ’24€15.92
€16.91
+6.2%
11.9%€21.20€13.50€16.5418
May ’24€16.51
€16.95
+2.7%
11.6%€21.20€13.50€15.6518
Apr ’24€16.20
€16.93
+4.5%
11.6%€21.20€13.50€15.8119
Mar ’24€15.41
€16.94
+9.9%
11.9%€21.20€13.50€14.7320
Feb ’24€16.29
€16.79
+3.1%
11.8%€21.20€13.50€15.2919
Jan ’24€16.26
€16.82
+3.4%
12.1%€21.20€13.50€14.9120
Dec ’23€17.30
€16.92
-2.2%
12.6%€21.20€13.50€15.3520
Nov ’23€16.28
€17.12
+5.2%
12.6%€21.20€13.50€14.8319

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

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