RWE Aktiengesellschaft

BATS-CHIXE:RWED Stock Report

Market Cap: €24.6b

RWE Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: RWED (€32.62) is trading above our estimate of fair value (€30.52)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RWED key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA3.9x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RWED vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.6x
SSE SSE
12.4x5.4%UK£21.1b
YU. Yü Group
6.5x-1.7%UK£248.4m
NG. National Grid
22.9x11.8%UK£50.7b
SVT Severn Trent
56.5x23.1%UK£7.9b
7.1x-13.8%€24.6b

Price-To-Earnings vs Peers: RWED is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (24.6x).


Price to Earnings Ratio vs Industry

How does RWED's PE Ratio compare vs other companies in the European Renewable Energy Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a23.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a23.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RWED is good value based on its Price-To-Earnings Ratio (7.1x) compared to the European Renewable Energy industry average (18.3x).


Price to Earnings Ratio vs Fair Ratio

What is RWED'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.

RWED PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.1x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: RWED is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).


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 RWED forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€32.62
€44.47
+36.3%
11.8%€52.50€34.20n/a18
Sep ’25€32.77
€44.75
+36.5%
11.4%€52.50€34.20n/a18
Aug ’25€34.24
€45.69
+33.4%
13.4%€59.50€34.20n/a18
Jul ’25€32.98
€46.19
+40.1%
12.7%€59.50€34.20n/a18
Jun ’25€34.89
€46.16
+32.3%
13.1%€59.50€34.20n/a18
May ’25€33.29
€46.11
+38.5%
13.2%€59.50€34.20n/a18
Apr ’25€31.53
€47.12
+49.4%
11.8%€59.50€36.00n/a18
Mar ’25€30.74
€49.55
+61.2%
13.3%€59.50€36.00n/a18
Feb ’25€33.83
€52.01
+53.7%
8.6%€59.50€43.00n/a18
Jan ’25n/a
€52.82
0%
8.6%€60.00€43.00n/a18
Dec ’24€39.56
€51.62
+30.5%
8.3%€58.50€43.00n/a18
Nov ’24€35.75
€51.52
+44.1%
7.2%€58.50€43.00n/a18
Oct ’24€34.63
€52.52
+51.7%
5.8%€58.50€45.00n/a18
Sep ’24€38.56
€53.04
+37.6%
6.2%€60.00€45.00€32.7719
Aug ’24€38.99
€52.46
+34.5%
5.8%€60.00€48.00€34.2419
Jul ’24€39.94
€52.24
+30.8%
5.2%€58.50€48.00€32.9819
Jun ’24€39.10
€51.92
+32.8%
4.9%€58.50€48.00€34.8918
May ’24€42.59
€51.47
+20.9%
4.8%€56.00€46.50€33.2919
Apr ’24€39.39
€50.63
+28.5%
5.6%€56.00€45.00€31.5318
Mar ’24€39.30
€51.92
+32.1%
6.4%€59.00€45.00€30.7417
Feb ’24€40.62
€52.13
+28.3%
6.3%€59.00€45.00€33.8317
Jan ’24€41.77
€51.26
+22.7%
8.2%€59.00€41.00n/a17
Dec ’23€42.53
€51.17
+20.3%
8.4%€60.00€41.00€39.5617
Nov ’23€39.41
€51.00
+29.4%
9.1%€60.00€41.00€35.7517
Oct ’23€37.66
€51.75
+37.4%
9.8%€60.00€41.00€34.6318
Sep ’23€38.59
€50.79
+31.6%
9.9%€60.00€41.00€38.5619

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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