Rai Way (BIT:RWAY): Assessing Valuation After Steady Growth and Expansion Into Digital Infrastructure

Rai Way (BIT:RWAY) just reported steady growth in both revenue and EBITDA, with the company’s recent focus on expanding its DAB radio network and new digital infrastructure such as edge data centers playing key roles in these results.

See our latest analysis for Rai Way.

After a year marked by steady operational progress and continued expansion into digital infrastructure, Rai Way’s latest results have been well received by the market. The share price closed at €5.79, up 5.5% so far in 2025. Long-term investors have enjoyed a 20% total return over the past 12 months. With strong total returns and momentum building from new initiatives, Rai Way’s performance suggests increasing investor confidence in the company’s growth strategy.

If Rai Way’s focus on networks and infrastructure has piqued your interest, now is a great time to see what else is moving in the market and discover fast growing stocks with high insider ownership

With Rai Way’s steady growth and ambitious expansion plans, investors may be wondering if the current share price is undervalued given its 24% discount to analyst targets, or if the market is already factoring in much of this future growth.

Most Popular Narrative: 19.1% Undervalued

Rai Way’s latest fair value estimate points to a significant upside versus the most recent share price, reflecting projections for robust digital growth and margin evolution. The company’s move into advanced broadcasting, edge data centers, and new industry partnerships supports this positive outlook.

Multi-year framework agreements with leading live streaming operators and ongoing negotiations position Rai Way for increased revenues and stable cash flows. As new services and higher-value digital infrastructure contracts become a larger part of the revenue mix, this could gradually improve margins.

Read the complete narrative.

Want to know the growth blueprint behind this ambitious price target? The narrative hinges on Rai Way unlocking earnings from a shift in how content is delivered and monetized. Curious about the bold assumptions and industry dynamics driving these projections? Dive into the full story to see what could propel the share price even higher.

Result: Fair Value of €7.16 (UNDERVALUED)

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

However, Rai Way's continued dependence on legacy broadcast clients and the possibility of regulatory delays in data center projects could pose challenges to its growth outlook in the coming years.

Find out about the key risks to this Rai Way narrative.

Another View: Market Ratios Raise Value Questions

Looking at valuation using the price-to-earnings ratio, Rai Way trades at 17.3x, which is above the peer average of 15.1x and the European industry average of 16.9x. The fair ratio is 14.4x. This premium suggests limited margin for safety. Could the market be too optimistic, or is Rai Way’s business mix truly different?

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

Build Your Own Rai Way Narrative

If you have a different take, or want to craft your own insights, you can piece together a personal narrative in just a few minutes. Do it your way

A great starting point for your Rai Way 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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