Jersey Electricity Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: JEL (£4.4) is trading above our estimate of fair value (£3.64)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for JEL. This is calculated by dividing JEL's market cap by their current earnings.
What is JEL's PE Ratio?
PE Ratio12x
EarningsUK£11.25m
Market CapUK£134.82m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for JEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.5x
OPG OPG Power Ventures
4.5xn/aUK£18.4m
SSE SSE
9.8x5.2%UK£18.6b
MRKC Rosseti Centre
2.3xn/a₽10.4b
IREL Irbid District Electricity
141.4xn/aد.أ132.3m
JEL Jersey Electricity
12x-8.8%UK£134.8m

Price-To-Earnings vs Peers: JEL is good value based on its Price-To-Earnings Ratio (12x) compared to the peer average (51.9x).


Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
JEL 12.0xIndustry Avg. 12.6xNo. of Companies11PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JEL is good value based on its Price-To-Earnings Ratio (12x) compared to the European Electric Utilities industry average (12.6x).


Price to Earnings Ratio vs Fair Ratio

What is JEL'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.

JEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12x
Fair PE Ratio10.7x

Price-To-Earnings vs Fair Ratio: JEL is expensive based on its Price-To-Earnings Ratio (12x) compared to the estimated Fair Price-To-Earnings Ratio (10.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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