freenet AG

LSE:0MV2 Stock Report

Market Cap: €3.4b

freenet Valuation

Is 0MV2 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 0MV2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0MV2 (€28.27) is trading below our estimate of fair value (€82.34)

Significantly Below Fair Value: 0MV2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0MV2?

Key metric: As 0MV2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0MV2. This is calculated by dividing 0MV2's market cap by their current earnings.
What is 0MV2's PE Ratio?
PE Ratio12.2x
Earnings€275.10m
Market Cap€3.37b

Price to Earnings Ratio vs Peers

How does 0MV2's PE Ratio compare to its peers?

The above table shows the PE ratio for 0MV2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.8x
VOD Vodafone Group
9.2x4.2%UK£18.1b
GAMA Gamma Communications
27.2x12.7%UK£1.5b
BT.A BT Group
18.2x14.7%UK£13.9b
GP Grameenphone
12.4xn/a৳440.2b
0MV2 freenet
12.2x4.2%€3.4b

Price-To-Earnings vs Peers: 0MV2 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (16.8x).

Price to Earnings Ratio vs Industry

How does 0MV2's PE Ratio compare vs other companies in the Global Wireless Telecom Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0MV2 12.2xIndustry Avg. 17.6xNo. of Companies10PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0MV2 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the Global Wireless Telecom industry average (17.8x).

Price to Earnings Ratio vs Fair Ratio

What is 0MV2'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.

0MV2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio17.3x

Price-To-Earnings vs Fair Ratio: 0MV2 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).

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 0MV2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€28.27
€30.99
+9.6%
9.4%€36.00€25.00n/a14
Nov ’25€27.40
€30.49
+11.3%
9.0%€35.20€25.00n/a14
Oct ’25€26.68
€30.37
+13.8%
8.8%€34.50€25.00n/a14
Sep ’25€26.32
€30.16
+14.6%
8.6%€34.50€25.00n/a14
Aug ’25€25.50
€29.94
+17.4%
8.9%€34.50€25.00n/a14
Jul ’25€25.23
€29.79
+18.1%
8.1%€33.40€25.00n/a14
Jun ’25€23.78
€29.51
+24.1%
9.2%€33.40€25.00n/a14
May ’25€26.22
€29.84
+13.8%
9.8%€34.00€25.00n/a14
Apr ’25€26.08
€30.09
+15.4%
10.9%€36.00€25.00n/a14
Mar ’25€25.48
€29.61
+16.2%
10.0%€36.00€24.50n/a14
Feb ’25€25.24
€29.61
+17.3%
9.5%€35.00€24.50n/a14
Jan ’25€25.28
€29.57
+17.0%
9.7%€35.00€24.00n/a14
Dec ’24€26.02
€29.43
+13.1%
9.0%€34.00€24.00n/a14
Nov ’24€24.10
€29.20
+21.2%
8.6%€33.00€23.50€27.4015
Oct ’24€22.16
€28.97
+30.7%
9.3%€33.00€23.00€26.6815
Sep ’24€22.23
€28.97
+30.4%
9.3%€33.00€23.00€26.3215
Aug ’24€22.48
€28.81
+28.2%
9.3%€33.00€23.00€25.5015
Jul ’24€23.05
€28.71
+24.6%
9.3%€33.00€23.00€25.2315
Jun ’24€23.04
€28.71
+24.6%
9.3%€33.00€23.00€23.7815
May ’24€25.84
€27.05
+4.7%
14.5%€31.00€15.60€26.2215
Apr ’24€23.93
€26.66
+11.4%
14.6%€30.70€15.60€26.0814
Mar ’24€23.73
€26.59
+12.1%
14.6%€30.70€15.60€25.4814
Feb ’24€22.36
€25.85
+15.6%
14.3%€30.00€15.60€25.2413
Jan ’24€20.49
€25.78
+25.8%
14.4%€30.00€15.60€25.2813
Dec ’23€21.29
€25.74
+20.9%
15.0%€30.00€15.60€26.0213
Nov ’23€20.07
€27.15
+35.2%
11.0%€32.00€21.40€24.1013

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

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