Fortum Oyj Valuation

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

Below Fair Value: FORTUM (€12.3) is trading below our estimate of fair value (€24.61)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

FORTUM 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/Revenue2x
Enterprise Value/EBITDA6.9x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FORTUM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.8x
6 Power Assets Holdings
15.8x3.7%HK$94.9b
EVRG Evergy
16x7.1%US$11.7b
1038 CK Infrastructure Holdings
14x5.4%HK$112.1b
ENELAM Enel Américas
21.6x14.4%CL$9.8t
FORTUM Fortum Oyj
7.3x-15.9%€11.0b

Price-To-Earnings vs Peers: FORTUM is good value based on its Price-To-Earnings Ratio (7.3x) compared to the peer average (16.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: FORTUM is good value based on its Price-To-Earnings Ratio (7.3x) compared to the European Electric Utilities industry average (11.4x).


Price to Earnings Ratio vs Fair Ratio

What is FORTUM'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.

FORTUM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FORTUM's Price-To-Earnings Fair Ratio for valuation analysis.


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 FORTUM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€12.30
€12.89
+4.8%
13.3%€18.00€10.50n/a16
Apr ’25€11.45
€12.89
+12.6%
13.3%€18.00€10.50n/a16
Mar ’25€11.39
€13.09
+15.0%
14.0%€18.00€10.50n/a16
Feb ’25€12.37
€14.20
+14.8%
10.8%€18.00€11.80n/a16
Jan ’25€13.06
€14.36
+9.9%
12.6%€18.00€11.00n/a16
Dec ’24€13.05
€14.33
+9.8%
11.6%€17.00€11.00n/a16
Nov ’24€11.20
€14.43
+28.9%
12.7%€17.50€11.00n/a16
Oct ’24€11.00
€14.84
+34.9%
10.5%€17.50€12.00n/a16
Sep ’24€12.44
€14.65
+17.8%
10.8%€17.50€12.00n/a16
Aug ’24€12.18
€15.19
+24.7%
10.6%€17.50€12.00n/a15
Jul ’24€12.27
€15.44
+25.9%
11.6%€18.20€12.00n/a14
Jun ’24€12.01
€15.76
+31.2%
12.1%€19.50€12.60n/a14
May ’24€13.53
€16.43
+21.4%
10.4%€19.50€12.60n/a14
Apr ’24€14.12
€16.50
+16.9%
9.8%€19.50€12.60€11.4514
Mar ’24€14.28
€16.50
+15.5%
10.7%€20.00€12.60€11.3914
Feb ’24€13.94
€17.01
+22.1%
12.3%€20.00€12.60€12.3714
Jan ’24€15.54
€17.88
+15.1%
12.1%€20.50€12.60€13.0613
Dec ’23€16.01
€17.70
+10.6%
12.0%€20.50€12.60€13.0513
Nov ’23€14.30
€16.97
+18.7%
16.0%€20.20€10.90€11.2013
Oct ’23€13.77
€16.86
+22.5%
17.0%€21.50€10.90€11.0013
Sep ’23€9.62
€16.14
+67.7%
25.3%€24.50€11.00€12.4414
Aug ’23€10.77
€18.74
+74.1%
20.7%€24.50€13.00€12.1814
Jul ’23€15.09
€20.46
+35.6%
14.9%€27.90€16.00€12.2716
Jun ’23€16.60
€20.96
+26.2%
15.5%€27.90€16.00€12.0116
May ’23€15.90
€22.56
+41.9%
19.5%€30.00€16.00€13.5316
Apr ’23€16.31
€23.06
+41.4%
19.2%€30.60€16.00€14.1216

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


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.