Centrica plc

LSE:CNA Stock Report

Market Cap: UK£6.2b

Centrica Valuation

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

Below Fair Value: CNA (£1.22) is trading below our estimate of fair value (£1.82)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CNA. This is calculated by dividing CNA's market cap by their current earnings.
What is CNA's PE Ratio?
PE Ratio5.6x
EarningsUK£1.10b
Market CapUK£6.16b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CNA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.7x
TEP Telecom Plus
19.4x11.3%UK£1.4b
NG. National Grid
27.6x15.5%UK£47.7b
SVT Severn Trent
57.9x23.2%UK£8.1b
UU. United Utilities Group
65.8x25.1%UK£7.4b
CNA Centrica
5.6x-10.8%UK£6.2b

Price-To-Earnings vs Peers: CNA is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (42.7x).

Price to Earnings Ratio vs Industry

How does CNA's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CNA 5.6xIndustry Avg. 17.6xNo. of Companies8PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CNA is good value based on its Price-To-Earnings Ratio (5.6x) compared to the Global Integrated Utilities industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is CNA'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.

CNA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.6x
Fair PE Ratio12.1x

Price-To-Earnings vs Fair Ratio: CNA is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).

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 CNA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.22
UK£1.68
+37.8%
12.2%UK£2.10UK£1.30n/a15
Nov ’25UK£1.18
UK£1.68
+42.1%
12.2%UK£2.10UK£1.30n/a15
Oct ’25UK£1.17
UK£1.70
+45.6%
12.1%UK£2.10UK£1.30n/a15
Sep ’25UK£1.29
UK£1.73
+34.4%
10.2%UK£2.10UK£1.45n/a15
Aug ’25UK£1.30
UK£1.73
+32.6%
10.3%UK£2.10UK£1.45n/a15
Jul ’25UK£1.37
UK£1.73
+26.8%
11.0%UK£2.10UK£1.45n/a14
Jun ’25UK£1.42
UK£1.72
+21.4%
12.7%UK£2.10UK£1.30n/a14
May ’25UK£1.27
UK£1.71
+33.9%
14.2%UK£2.10UK£1.30n/a14
Apr ’25UK£1.28
UK£1.73
+35.1%
13.5%UK£2.10UK£1.30n/a14
Mar ’25UK£1.26
UK£1.74
+37.6%
12.7%UK£2.10UK£1.40n/a15
Feb ’25UK£1.37
UK£1.81
+31.9%
14.4%UK£2.30UK£1.40n/a16
Jan ’25UK£1.41
UK£1.79
+27.6%
13.3%UK£2.15UK£1.40n/a16
Dec ’24UK£1.53
UK£1.79
+17.0%
14.3%UK£2.15UK£1.40n/a16
Nov ’24UK£1.62
UK£1.79
+10.0%
14.3%UK£2.15UK£1.40UK£1.1816
Oct ’24UK£1.54
UK£1.75
+13.1%
15.5%UK£2.15UK£1.35UK£1.1715
Sep ’24UK£1.54
UK£1.72
+11.8%
15.7%UK£2.15UK£1.35UK£1.2915
Aug ’24UK£1.40
UK£1.56
+11.2%
17.1%UK£2.15UK£1.10UK£1.3015
Jul ’24UK£1.24
UK£1.45
+17.0%
12.1%UK£1.75UK£1.10UK£1.3715
Jun ’24UK£1.20
UK£1.41
+17.6%
11.6%UK£1.70UK£1.10UK£1.4215
May ’24UK£1.15
UK£1.39
+21.0%
12.2%UK£1.65UK£1.10UK£1.2715
Apr ’24UK£1.06
UK£1.38
+30.0%
12.9%UK£1.65UK£1.10UK£1.2815
Mar ’24UK£1.04
UK£1.32
+27.0%
20.7%UK£1.65UK£0.50UK£1.2614
Feb ’24UK£1.01
UK£1.31
+29.2%
20.5%UK£1.70UK£0.50UK£1.3715
Jan ’24UK£0.97
UK£1.26
+30.0%
22.3%UK£1.65UK£0.50UK£1.4114
Dec ’23UK£0.96
UK£1.22
+27.9%
24.7%UK£1.65UK£0.50UK£1.5315
Nov ’23UK£0.78
UK£1.17
+50.5%
25.5%UK£1.60UK£0.50UK£1.6215

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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