EDP Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: EDPU (€3.52) is trading below our estimate of fair value (€3.97)

Significantly Below Fair Value: EDPU is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EDPU. This is calculated by dividing EDPU's market cap by their current earnings.
What is EDPU's PE Ratio?
PE Ratio13.1x
Earnings€1.09b
Market Cap€14.28b

Price to Earnings Ratio vs Peers

How does EDPU's PE Ratio compare to its peers?

The above table shows the PE ratio for EDPU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.6x
SSE SSE
10.1x5.2%UK£19.2b
JEL Jersey Electricity
12x-8.8%UK£134.8m
UU. United Utilities Group
68.4x24.4%UK£7.7b
SVT Severn Trent
35.9x24.3%UK£8.3b
13.1x0.7%€14.3b

Price-To-Earnings vs Peers: EDPU is good value based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (31.6x).


Price to Earnings Ratio vs Industry

How does EDPU's PE Ratio compare vs other companies in the European Electric Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
No. of Companies11PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EDPU is expensive based on its Price-To-Earnings Ratio (13.1x) compared to the European Electric Utilities industry average (12.6x).


Price to Earnings Ratio vs Fair Ratio

What is EDPU'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.

EDPU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EDPU's Price-To-Earnings 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?

The above table shows the analyst EDPU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.52
€4.62
+31.2%
12.1%€5.95€3.70n/a20
Nov ’25€3.67
€4.81
+31.1%
10.1%€5.95€4.00n/a20
Oct ’25€4.11
€4.80
+16.7%
10.9%€5.95€3.80n/a20
Sep ’25n/a
€4.76
0%
11.6%€5.95€3.80n/a20
Aug ’25€3.83
€4.82
+25.6%
12.6%€5.95€3.80n/a20
Jul ’25€3.53
€4.86
+37.4%
12.2%€5.95€3.70n/a20
Jun ’25n/a
€4.89
0%
13.0%€5.95€3.55n/a20
May ’25n/a
€4.96
0%
13.5%€6.10€3.90n/a20
Apr ’25n/a
€5.14
0%
12.8%€6.10€3.95n/a20
Mar ’25n/a
€5.29
0%
10.3%€6.10€4.25n/a20
Feb ’25n/a
€5.46
0%
7.9%€6.10€4.65n/a20
Jan ’25n/a
€5.60
0%
11.1%€7.35€4.30n/a20
Dec ’24€4.43
€5.61
+26.6%
11.1%€7.35€4.30n/a20
Nov ’24n/a
€5.62
0%
11.4%€7.35€4.30€3.6720
Oct ’24n/a
€5.71
0%
10.1%€7.35€4.70€4.1120
Sep ’24€4.24
€5.78
+36.2%
9.5%€7.35€4.70n/a20
Aug ’24n/a
€5.79
0%
9.1%€7.35€4.70€3.8320
Jul ’24€4.48
€5.81
+29.7%
8.2%€7.35€5.00€3.5320
Jun ’24n/a
€5.85
0%
7.7%€7.35€5.00n/a20
May ’24€5.15
€5.87
+14.0%
7.8%€7.35€5.00n/a19
Apr ’24n/a
€5.81
0%
8.1%€7.35€5.00n/a19
Mar ’24€4.76
€5.83
+22.6%
8.0%€7.35€5.00n/a21
Feb ’24€4.63
€5.80
+25.1%
8.2%€7.35€5.00n/a21
Jan ’24n/a
€5.80
0%
8.5%€7.35€5.00n/a21
Dec ’23€4.52
€5.80
+28.4%
8.5%€7.35€5.00€4.4321
Nov ’23€4.44
€5.80
+30.7%
8.4%€7.35€5.00n/a21

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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