Snam (BIT:SRG) Valuation in Focus After Dividend Hike and Strong Nine-Month Results

Snam (BIT:SRG) just announced a 4% increase in its 2025 interim dividend, with payment set for January 2026. The company also posted higher sales and net income for the past nine months.

See our latest analysis for Snam.

Snam’s recent interim dividend boost and solid nine-month results come on the back of impressive momentum. The company’s share price has climbed nearly 30% year-to-date, while its 1-year total shareholder return sits just shy of 40%. This sustained performance suggests that investors are responding both to improved fundamentals and to management’s steady hand on growth and payouts.

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But with shares already up nearly 30% this year and recent results beating expectations, is there still a buying opportunity here, or is the market already pricing in Snam’s future growth?

Most Popular Narrative: 4% Overvalued

Snam’s last close at €5.65 sits just above the widely followed narrative fair value of €5.42, hinting at a slightly expensive market stance. The latest narrative brings together forward-looking growth assumptions and sector-wide transformation themes and sets the stage for evolving expectations.

Regulatory and investment momentum behind green hydrogen, biomethane, and carbon capture & storage (CCS), demonstrated by Snam's pipeline of hydrogen-ready projects, advancing CCS in Ravenna, and new regulatory frameworks, will unlock incremental revenue streams and drive higher long-term EBITDA margins.

Read the complete narrative.

Curious what ambitious growth bets are baked into this price? The key drivers play out through bold revenue upgrades, shifting margins, and a future earnings multiple that rivals top-tier sectors. See which strategies and forward estimates have analysts betting on Snam’s evolving value story.

Result: Fair Value of €5.42 (OVERVALUED)

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

However, Europe's energy transition could dampen long-term gas demand, or stricter regulations could erode Snam's profitability, questioning the current bullish outlook.

Find out about the key risks to this Snam narrative.

Another View: Is the Market Missing Something?

While the popular narrative sees Snam as slightly overvalued, our DCF model tells a different story. The model suggests the stock is trading well above its fair value of €2.91. This significant gap challenges the idea that Snam’s future growth is enough to support its current price. Could there be more risk looming than most expect?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Snam Narrative

If you see things differently or want to dig deeper into the numbers, you can build your own perspective in just a few minutes with Do it your way

A great starting point for your Snam 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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