Rai Way S.p.A.

LSE:0R40 Stock Report

Market Cap: €1.4b

Rai Way Valuation

Is 0R40 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 0R40 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0R40 (€5.18) is trading below our estimate of fair value (€8.13)

Significantly Below Fair Value: 0R40 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0R40?

Key metric: As 0R40 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0R40. This is calculated by dividing 0R40's market cap by their current earnings.
What is 0R40's PE Ratio?
PE Ratio15.9x
Earnings€87.45m
Market Cap€1.39b

Price to Earnings Ratio vs Peers

How does 0R40's PE Ratio compare to its peers?

The above table shows the PE ratio for 0R40 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average49.4x
BT.A BT Group
20.4x14.4%UK£15.6b
GAMA Gamma Communications
27.4x14.2%UK£1.5b
603220 China Bester Group Telecom
50.6xn/aCN¥9.3b
JTS Jasmine Technology Solution
99.3xn/a฿45.6b
0R40 Rai Way
15.9x0.7%€1.4b

Price-To-Earnings vs Peers: 0R40 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (49.1x).

Price to Earnings Ratio vs Industry

How does 0R40's PE Ratio compare vs other companies in the European Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0R40 15.9xIndustry Avg. 18.2xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0R40 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the European Telecom industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is 0R40'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.

0R40 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.9x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: 0R40 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

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 0R40 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.18
€7.10
+37.1%
6.4%€7.60€6.60n/a4
Nov ’25€5.35
€7.10
+32.7%
6.4%€7.60€6.60n/a4
Oct ’25€5.32
€7.03
+32.0%
5.5%€7.50€6.60n/a4
Sep ’25€5.09
€7.03
+38.0%
5.5%€7.50€6.60n/a4
Aug ’25€4.95
€7.03
+42.1%
5.5%€7.50€6.60n/a4
Jul ’25€4.95
€7.03
+41.9%
5.5%€7.50€6.60n/a4
Jun ’25€5.19
€6.98
+34.4%
6.2%€7.50€6.50n/a4
May ’25€5.32
€6.75
+26.9%
6.7%€7.50€6.30n/a4
Apr ’25€5.19
€6.75
+30.1%
6.7%€7.50€6.30n/a4
Mar ’25€4.81
€6.53
+35.7%
4.4%€7.00€6.30n/a4
Feb ’25€5.04
€6.53
+29.5%
4.4%€7.00€6.30n/a4
Jan ’25€5.14
€6.53
+26.9%
4.4%€7.00€6.30n/a4
Dec ’24€4.92
€6.53
+32.8%
4.4%€7.00€6.30n/a4
Nov ’24€4.70
€6.56
+39.7%
3.6%€7.00€6.30€5.355
Oct ’24€4.98
€6.66
+33.9%
6.4%€7.50€6.30€5.325
Sep ’24€5.14
€6.66
+29.6%
6.4%€7.50€6.30€5.095
Aug ’24€5.15
€6.64
+28.9%
6.6%€7.50€6.30€4.955
Jul ’24€5.54
€6.64
+19.9%
6.6%€7.50€6.30€4.955
Jun ’24€5.21
€6.64
+27.4%
6.6%€7.50€6.30€5.195
May ’24€5.74
€6.64
+15.7%
6.6%€7.50€6.30€5.325
Apr ’24€5.56
€6.48
+16.6%
8.2%€7.50€5.70€5.196
Mar ’24€5.48
€6.45
+17.7%
8.3%€7.50€5.70€4.816
Feb ’24€5.25
€6.27
+19.5%
5.0%€6.70€5.70€5.046
Jan ’24€5.43
€6.33
+16.7%
3.4%€6.70€6.10€5.146
Dec ’23€5.24
€6.33
+20.9%
3.4%€6.70€6.10€4.926
Nov ’23€4.80
€6.25
+30.2%
2.6%€6.50€6.00€4.706

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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