Siemens Gamesa Renewable Energy, S.A.

BATS-CHIXE:SGREE Stock Report

Market Cap: €12.3b

Siemens Gamesa Renewable Energy Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SGREE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SGREE (€18.06) is trading above our estimate of fair value (€8.49)

Significantly Below Fair Value: SGREE is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As SGREE is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SGREE. This is calculated by dividing SGREE's market cap by their current revenue.
What is SGREE's PS Ratio?
PS Ratio1.2x
Sales€9.99b
Market Cap€12.28b

Price to Sales Ratio vs Peers

How does SGREE's PS Ratio compare to its peers?

The above table shows the PS ratio for SGREE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.2x
ITM ITM Power
13.6x39.2%UK£223.9m
BNZL Bunzl
1x3.0%UK£11.4b
DCC DCC
0.3x2.1%UK£5.3b
SMIN Smiths Group
1.9x4.0%UK£5.8b
SGREE Siemens Gamesa Renewable Energy
1.2x13.5%€12.3b

Price-To-Sales vs Peers: SGREE is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (2.8x).

Price to Sales Ratio vs Industry

How does SGREE's PS Ratio compare vs other companies in the GB Electrical Industry?

12 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.n/a14.4%
SGREE Siemens Gamesa Renewable Energy
 1.2x13.5%US$13.21b
DSCV discoverIE Group
1.4x2.8%US$798.28m
VLX Volex
0.7x6.6%US$698.26m
No. of Companies11PS0612182430+
12 CompaniesEstimated GrowthMarket Cap
Industry Avg.n/a32.1%
SGREE Siemens Gamesa Renewable Energy
 1.2x66.0%US$13.21b
No more companies

Price-To-Sales vs Industry: SGREE is good value based on its Price-To-Sales Ratio (1.2x) compared to the UK Electrical industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is SGREE's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SGREE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SGREE's Price-To-Sales 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?

Analyst Forecast: Insufficient data to show price forecast.

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