Voltalia (ENXTPA:VLTSA) Valuation After Securing 20-Year Tariffs for 68MW of Italian Solar Projects

Voltalia (ENXTPA:VLTSA) just locked in 20 year tariffs for 68 megawatts of solar projects in Italy, giving investors clearer visibility on long term revenues from a meaningful slice of its Italian pipeline.

See our latest analysis for Voltalia.

The announcement has arrived after a choppy spell for the stock, with a 90 day share price return of almost 12% but a flat 1 year total shareholder return. This suggests early signs of momentum rather than a full rerating.

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Yet with the shares still down heavily over three and five years but trading nearly 45 percent below analyst targets, is this renewed momentum signaling a genuine buying opportunity, or is the market already pricing in the recovery and future growth?

Price-to-Sales of 1.6x: Is it justified?

Voltalia trades on a price to sales ratio of 1.6x at a last close of €7.06, which screens as undervalued against both peers and the broader European renewable energy sector.

The price to sales multiple compares the company’s market value to its annual revenue, a useful yardstick for capital intensive, often loss making renewable developers where profits can be lumpy. For Voltalia, this lens matters because the group is still unprofitable but growing its top line. Investors are effectively paying for present and future revenue scale rather than current earnings.

On this basis, Voltalia looks cheap relative to several benchmarks. Management may not yet be delivering positive net income and return on equity is negative. However, the stock trades on 1.6x sales versus about 2.6x for the European renewable energy industry and around 4.8x for its closer peer set, suggesting the market is assigning a sizeable discount to its revenue base. The estimated fair price to sales ratio of 2.4x reinforces this gap, implying room for the multiple to move closer to levels seen across the sector if execution and profitability improve.

Explore the SWS fair ratio for Voltalia

Result: Price-to-Sales of 1.6x (UNDERVALUED)

However, sustained losses and only modest revenue growth still leave execution risk elevated, and any setback on Italian projects could quickly puncture renewed optimism.

Find out about the key risks to this Voltalia narrative.

Build Your Own Voltalia Narrative

If you would rather dig into the numbers yourself, you can build a completely personalized Voltalia view in minutes: shaping your own story, Do it your way.

A great starting point for your Voltalia research is our analysis highlighting 2 key rewards and 1 important warning sign 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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