RWE Valuation

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

Below Fair Value: 1RWE (€31.88) is trading above our estimate of fair value (€30.05)

Significantly Below Fair Value: 1RWE is trading above our estimate of fair value.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for 1RWE. This is calculated by dividing 1RWE's market cap by their current earnings.
What is 1RWE's PE Ratio?
PE Ratio8.4x
Earnings€2.82b
Market Cap€23.73b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 1RWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.7x
EDNR Edison
21.3xn/a€8.6b
TRN Terna
14.7x1.4%€15.5b
SRG Snam
14x4.6%€14.5b
ENEL Enel
12.6x5.0%€68.0b
8.4x-10.8%€23.7b

Price-To-Earnings vs Peers: 1RWE is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (15.7x).


Price to Earnings Ratio vs Industry

How does 1RWE's PE Ratio compare vs other companies in the European Renewable Energy Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1RWE 8.4xIndustry Avg. 16.5xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1RWE is good value based on its Price-To-Earnings Ratio (8.4x) compared to the European Renewable Energy industry average (16.8x).


Price to Earnings Ratio vs Fair Ratio

What is 1RWE'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.

1RWE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ratio12.5x

Price-To-Earnings vs Fair Ratio: 1RWE is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).


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 1RWE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€31.88
€43.91
+37.7%
11.1%€52.50€34.20n/a17
Nov ’25€29.80
€44.44
+49.1%
10.3%€52.50€34.20n/a17
Oct ’25€32.26
€44.25
+37.2%
11.5%€52.50€34.20n/a18
Sep ’25€32.67
€44.75
+37.0%
11.4%€52.50€34.20n/a18
Aug ’25€34.18
€45.69
+33.7%
13.4%€59.50€34.20n/a18
Jul ’25€32.66
€46.19
+41.4%
12.7%€59.50€34.20n/a18
Jun ’25€34.88
€46.16
+32.4%
13.1%€59.50€34.20n/a18
May ’25€32.58
€46.11
+41.5%
13.2%€59.50€34.20n/a18
Apr ’25€31.41
€47.12
+50.0%
11.8%€59.50€36.00n/a18
Mar ’25€30.75
€49.55
+61.1%
13.3%€59.50€36.00n/a18
Feb ’25€33.91
€52.01
+53.4%
8.6%€59.50€43.00n/a18
Jan ’25€40.93
€52.82
+29.0%
8.6%€60.00€43.00n/a18
Dec ’24€39.72
€51.62
+30.0%
8.3%€58.50€43.00n/a18
Nov ’24€36.00
€51.52
+43.1%
7.2%€58.50€43.00€29.8018
Oct ’24€35.41
€52.52
+48.3%
5.8%€58.50€45.00€32.2618
Sep ’24€37.88
€53.04
+40.0%
6.2%€60.00€45.00€32.6719
Aug ’24€38.90
€52.46
+34.9%
5.8%€60.00€48.00€34.1819
Jul ’24€40.00
€52.24
+30.6%
5.2%€58.50€48.00€32.6619
Jun ’24€39.24
€51.92
+32.3%
4.9%€58.50€48.00€34.8818
May ’24€42.49
€51.47
+21.1%
4.8%€56.00€46.50€32.5819
Apr ’24€39.55
€50.63
+28.0%
5.6%€56.00€45.00€31.4118
Mar ’24€39.42
€51.92
+31.7%
6.4%€59.00€45.00€30.7517
Feb ’24€40.84
€52.13
+27.6%
6.3%€59.00€45.00€33.9117
Jan ’24€41.40
€51.26
+23.8%
8.2%€59.00€41.00€40.9317
Dec ’23€42.36
€51.17
+20.8%
8.4%€60.00€41.00€39.7217
Nov ’23€38.82
€51.00
+31.4%
9.1%€60.00€41.00€36.0017

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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