Terna S.p.A.

BIT:TRN Stock Report

Market Cap: €16.0b

Terna Valuation

Is TRN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 TRN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TRN (€7.97) is trading above our estimate of fair value (€7.1)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TRN. This is calculated by dividing TRN's market cap by their current earnings.
What is TRN's PE Ratio?
PE Ratio15.2x
Earnings€1.05b
Market Cap€15.99b

Price to Earnings Ratio vs Peers

How does TRN's PE Ratio compare to its peers?

The above table shows the PE ratio for TRN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.5x
ENEL Enel
12.6x5.0%€68.3b
SRG Snam
14.2x4.6%€14.7b
EVISO eVISO
30x25.9%€146.5m
EDNR Edison
21.2xn/a€8.6b
TRN Terna
15.2x1.4%€16.0b

Price-To-Earnings vs Peers: TRN is good value based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (19.5x).

Price to Earnings Ratio vs Industry

How does TRN's PE Ratio compare vs other companies in the European Electric Utilities Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TRN 15.2xIndustry Avg. 12.7xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TRN is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the European Electric Utilities industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is TRN'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.

TRN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio13.5x

Price-To-Earnings vs Fair Ratio: TRN is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).

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 TRN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€7.97
€8.33
+4.5%
6.6%€9.60€7.60n/a18
Nov ’25€8.00
€8.31
+3.9%
6.6%€9.60€7.30n/a17
Oct ’25€8.12
€8.26
+1.7%
6.7%€9.60€7.30n/a17
Sep ’25€7.86
€8.21
+4.5%
6.2%€9.40€7.30n/a17
Aug ’25€7.52
€8.20
+9.1%
6.3%€9.40€7.30n/a17
Jul ’25€7.30
€8.22
+12.5%
6.4%€9.40€7.30n/a17
Jun ’25€7.72
€8.12
+5.2%
7.3%€9.40€7.00n/a18
May ’25€7.52
€8.04
+6.8%
9.6%€9.40€6.00n/a18
Apr ’25€7.66
€8.03
+4.8%
9.7%€9.30€6.00n/a18
Mar ’25€7.26
€7.72
+6.3%
9.3%€9.30€6.00n/a18
Feb ’25€7.72
€7.71
-0.2%
9.0%€9.10€6.00n/a18
Jan ’25€7.55
€7.63
+1.0%
9.2%€9.10€6.00n/a17
Dec ’24€7.43
€7.61
+2.4%
9.4%€9.10€6.00n/a17
Nov ’24€7.32
€7.66
+4.6%
9.6%€9.10€6.00€8.0017
Oct ’24€7.13
€7.71
+8.1%
9.7%€9.10€6.00€8.1217
Sep ’24€7.61
€7.61
+0.09%
9.8%€8.50€6.00€7.8617
Aug ’24€7.67
€7.61
-0.8%
10.1%€8.50€6.00€7.5217
Jul ’24€7.81
€7.62
-2.4%
10.2%€8.60€6.00€7.3017
Jun ’24€7.83
€7.61
-2.9%
10.2%€8.60€6.00€7.7217
May ’24€7.86
€7.45
-5.2%
10.1%€8.50€6.00€7.5215
Apr ’24€7.57
€7.37
-2.6%
9.6%€8.50€6.00€7.6616
Mar ’24€6.96
€7.25
+4.1%
9.1%€8.20€6.00€7.2616
Feb ’24€7.28
€7.20
-1.1%
9.1%€8.20€6.00€7.7216
Jan ’24€6.90
€7.13
+3.3%
8.9%€8.10€6.00€7.5516
Dec ’23€7.45
€7.07
-5.1%
10.5%€8.10€5.60€7.4316
Nov ’23€6.75
€7.15
+6.0%
12.8%€9.30€5.60€7.3217

Analyst Forecast: Target price is less than 20% higher than the current share price.

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