E.ON Valuation

Is 1EOAN 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 1EOAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1EOAN (€11.55) is trading below our estimate of fair value (€17.66)

Significantly Below Fair Value: 1EOAN is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1EOAN?

Key metric: As 1EOAN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1EOAN. This is calculated by dividing 1EOAN's market cap by their current earnings.
What is 1EOAN's PE Ratio?
PE Ratio16.8x
Earnings€1.80b
Market Cap€30.22b

Price to Earnings Ratio vs Peers

How does 1EOAN's PE Ratio compare to its peers?

The above table shows the PE ratio for 1EOAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.3x
A2A A2A
6.9x-8.9%€6.5b
HER Hera
11.5x2.3%€4.9b
ACE ACEA
9.8x-1.0%€3.6b
IRE Iren
9.1x5.0%€2.5b
1EOAN E.ON
16.8x8.9%€30.2b

Price-To-Earnings vs Peers: 1EOAN is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the peer average (9.3x).


Price to Earnings Ratio vs Industry

How does 1EOAN's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1EOAN 16.8xIndustry Avg. 17.5xNo. of Companies8PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1EOAN is good value based on its Price-To-Earnings Ratio (16.8x) compared to the Global Integrated Utilities industry average (17.6x).


Price to Earnings Ratio vs Fair Ratio

What is 1EOAN'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.

1EOAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.8x
Fair PE Ratio15.3x

Price-To-Earnings vs Fair Ratio: 1EOAN is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the estimated Fair Price-To-Earnings Ratio (15.3x).


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 1EOAN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€11.55
€15.41
+33.4%
8.2%€18.00€13.00n/a17
Nov ’25€12.49
€15.46
+23.8%
8.0%€17.80€13.00n/a17
Oct ’25€13.32
€15.40
+15.6%
7.7%€17.80€13.00n/a17
Sep ’25€12.80
€15.25
+19.2%
7.0%€17.30€13.00n/a17
Aug ’25€12.61
€15.06
+19.4%
10.1%€17.60€10.50n/a17
Jul ’25€12.24
€15.06
+23.1%
10.1%€17.60€10.50n/a17
Jun ’25€12.24
€14.86
+21.4%
11.2%€17.60€10.50n/a17
May ’25€12.34
€14.31
+16.0%
13.2%€17.40€10.50n/a17
Apr ’25€12.90
€14.14
+9.6%
13.1%€17.40€10.50n/a17
Mar ’25€11.86
€13.60
+14.6%
10.6%€16.20€10.50n/a18
Feb ’25€12.54
€13.49
+7.6%
10.3%€16.20€10.50n/a18
Jan ’25€11.88
€13.00
+9.5%
7.3%€14.00€10.50n/a18
Dec ’24€12.01
€12.76
+6.3%
7.6%€14.00€10.50n/a18
Nov ’24€11.30
€12.66
+12.1%
8.3%€14.00€10.50€12.4918
Oct ’24€11.26
€12.68
+12.6%
9.1%€14.50€10.50€13.3218
Sep ’24€11.41
€12.66
+11.0%
8.8%€14.50€10.50€12.8019
Aug ’24€11.49
€12.63
+10.0%
8.8%€14.00€10.50€12.6119
Jul ’24€11.67
€12.31
+5.5%
13.8%€14.00€6.60€12.2420
Jun ’24€11.27
€11.97
+6.2%
15.5%€14.00€6.60€12.2420
May ’24€12.01
€11.77
-2.0%
14.7%€14.00€6.60€12.3420
Apr ’24€11.55
€11.18
-3.2%
14.5%€13.50€6.60€12.9021
Mar ’24€10.07
€10.66
+5.8%
14.1%€13.80€6.60€11.8620
Feb ’24€9.93
€10.50
+5.7%
14.6%€13.80€6.60€12.5420
Jan ’24€9.32
€10.39
+11.5%
13.8%€12.50€6.60€11.8820
Dec ’23€9.11
€10.39
+14.1%
13.8%€12.50€6.60€12.0120
Nov ’23€8.51
€10.71
+25.8%
15.2%€12.50€6.60€11.3019

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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