Neoenergia S.A.

BME:XNEO Stock Report

Market Cap: €4.0b

Neoenergia Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: XNEO (€3.18) is trading below our estimate of fair value (€19.99)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for XNEO. This is calculated by dividing XNEO's market cap by their current earnings.
What is XNEO's PE Ratio?
PE Ratio6.7x
EarningsR$3.76b
Market CapR$25.09b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for XNEO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21x
RED Redeia Corporación
16.4x7.0%€9.2b
ANA Acciona
34.6x13.0%€6.6b
ELE Endesa
20.1x10.5%€21.9b
IBE Iberdrola
12.9x-2.6%€83.3b
XNEO Neoenergia
6.7x2.6%€25.1b

Price-To-Earnings vs Peers: XNEO is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (21x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
XNEO 6.7xIndustry Avg. 12.7xNo. of Companies11PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: XNEO is good value based on its Price-To-Earnings Ratio (6.7x) compared to the European Electric Utilities industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is XNEO'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.

XNEO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.7x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: XNEO is good value based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).

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 XNEO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.18
€4.56
+43.3%
17.2%€5.99€3.19n/a11
Nov ’25€3.02
€4.65
+54.1%
17.2%€6.12€3.26n/a11
Oct ’25€3.20
€4.72
+47.5%
17.2%€6.21€3.30n/a11
Sep ’25€3.24
€4.57
+41.1%
17.5%€6.06€3.22n/a11
Aug ’25€3.04
€4.69
+54.2%
16.7%€6.19€3.29n/a12
Jul ’25€3.16
€4.82
+52.5%
16.8%€6.38€3.39n/a12
Jun ’25€3.38
€5.10
+51.0%
17.0%€6.78€3.61n/a12
May ’25€3.42
€5.01
+46.4%
14.5%€6.63€3.61n/a11
Apr ’25€3.76
€5.19
+38.1%
14.3%€6.81€3.71n/a10
Mar ’25€3.96
€5.20
+31.3%
14.3%€6.81€3.71n/a10
Feb ’25€3.74
€4.88
+30.6%
9.3%€5.59€3.73n/a12
Jan ’25€3.76
€4.82
+28.2%
8.8%€5.59€3.73n/a12
Dec ’24€3.68
€4.82
+31.0%
8.8%€5.59€3.73n/a12
Nov ’24€3.30
€4.93
+49.3%
8.6%€5.69€3.80€3.0212
Oct ’24€3.46
€4.93
+42.6%
10.0%€5.78€3.85€3.2010
Sep ’24€3.42
€4.76
+39.2%
11.5%€5.64€3.74€3.2412
Aug ’24€3.76
€4.74
+26.1%
11.5%€5.37€3.83€3.0412
Jul ’24€3.94
€4.61
+17.0%
12.4%€5.36€3.82€3.1611
Jun ’24€3.00
€4.43
+47.8%
12.4%€5.16€3.68€3.3811
May ’24€2.76
€4.28
+55.1%
11.6%€5.00€3.57€3.4212
Apr ’24€2.76
€4.49
+62.7%
12.0%€5.30€3.64€3.7612
Mar ’24€2.54
€4.49
+76.8%
12.0%€5.30€3.64€3.9612
Feb ’24€2.76
€4.33
+57.0%
14.0%€5.22€3.51€3.7413
Jan ’24€2.78
€4.30
+54.6%
12.6%€5.15€3.46€3.7613
Dec ’23€2.88
€4.72
+64.0%
11.9%€5.60€3.77€3.6813
Nov ’23€3.30
€4.53
+37.4%
12.8%€5.53€3.59€3.3013

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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