Voltalia (ENXTPA:VLTSA) Valuation in Focus Following Q3 Growth and 2025 Outlook Update

Voltalia (ENXTPA:VLTSA) just released its third quarter results and updated guidance for 2025, highlighting an increase in annual production and turnover. The company now expects lower curtailment in Brazil for the coming year.

See our latest analysis for Voltalia.

Voltalia’s third quarter update injected some optimism, but momentum has been slow to translate into the stock price. Despite the recent uptick in production and turnover, the one-year total shareholder return stands at -13.25%, and long-term holders have experienced deeper declines. Recent events have sharpened market focus on the company’s progress. Investors appear to be weighing growth potential against past volatility as sentiment gradually stabilizes.

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Given the recent results, is Voltalia undervalued at current levels, or has the market already adjusted for improved production and future guidance, leaving little room for outsized gains?

Price-to-Sales of 1.7x: Is it justified?

Based on the current price-to-sales (P/S) ratio of 1.7x, Voltalia appears attractively valued compared to both its peers and broader industry benchmarks, especially given its last close price of €7.37.

The P/S ratio compares a company's market value to its annual sales and provides an indicator of how much investors are willing to pay for each euro of revenue. For a company like Voltalia, which is currently unprofitable but exhibiting revenue growth and expectations of a turnaround, this metric helps gauge market optimism versus business fundamentals.

Voltalia trades at a P/S ratio of 1.7x, noticeably below the European Renewable Energy industry average of 2.4x and well under the peer average of 5x. In addition, the estimated fair P/S ratio for Voltalia is 2.9x, suggesting upside if the market eventually rewards its anticipated growth and path to profitability.

Explore the SWS fair ratio for Voltalia

Result: Price-to-Sales of 1.7x (UNDERVALUED)

However, weak long-term returns and recent share price volatility could challenge bullish expectations if performance does not meet rising forecasts.

Find out about the key risks to this Voltalia narrative.

Build Your Own Voltalia Narrative

If you have a different take on Voltalia’s outlook or want to interpret the company’s progress in your own way, it only takes a couple of minutes to analyze the numbers for yourself and shape your perspective. 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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