Eni (BIT:ENI) Valuation: Is There Still Upside After Recent Shareholder Returns?

Eni (BIT:ENI) has seen its stock price move in recent weeks, drawing attention from investors interested in the company’s longer-term performance. With steady revenue growth and a solid annual net income increase, Eni continues to attract market watchers.

See our latest analysis for Eni.

After a steady climb over the year, Eni’s shares are up 16.5% year-to-date, reflecting growing investor confidence and enthusiasm around improved earnings. The long-term picture stands out as well, with a remarkable 25% total shareholder return over the past year, which points to real momentum for longer-term holders.

If you’re curious where else strong shareholder returns might be emerging, consider broadening your perspective and discover fast growing stocks with high insider ownership

With shares trading near analyst targets but still showing a notable intrinsic discount, investors are left to consider whether Eni is currently undervalued or if markets have already priced in its future growth potential.

Most Popular Narrative: 3.9% Undervalued

With Eni's fair value estimate set higher than its last close price, the prevailing narrative positions the stock as modestly undervalued despite its recent run. The stage is set for further gains if the key assumptions hold true.

Eni's strategic expansion in LNG, highlighted by leading floating LNG investments in Africa, the Eastern Mediterranean, and new ventures in Argentina and Southeast Asia, positions the company to capture rising global demand for diverse and secure natural gas supplies. This geographic and product diversification is expected to drive future revenue and stabilize earnings amid energy transition volatility.

Read the complete narrative.

Want to know the growth blueprint behind this valuation? The narrative hinges on unconventional margin improvements and a future profit multiple not usually seen in traditional energy stocks. What bold assumptions make the math work? Dive deeper to see the unexpected numbers driving this fair value call.

Result: Fair Value of $16.31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, operational challenges in Eni's legacy businesses and geopolitical risks tied to its expansion could threaten both growth and profitability if conditions become more difficult.

Find out about the key risks to this Eni narrative.

Another View: Multiple Comparison Tells a Different Story

Looking through the lens of common market multiples paints a more cautious picture. Eni trades at an 18.2x earnings multiple, which is noticeably higher than its peers averaging 12.9x, and above the broader industry at 12.6x. While the fair ratio sits at 21.4x, this premium raises questions about valuation risk if market sentiment shifts.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Eni Narrative

If you see the story differently or want to investigate the data firsthand, you can craft your own narrative in just a few minutes. Do it your way

A great starting point for your Eni research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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