Kenya Electricity Generating Valuation

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

Below Fair Value: KEGN (KES3.98) is trading below our estimate of fair value (KES18.88)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KEGN. This is calculated by dividing KEGN's market cap by their current earnings.
What is KEGN's PE Ratio?
PE Ratio	3.9x
Earnings	KSh6.80b
Market Cap	KSh26.31b

KEGN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	4.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KEGN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	25.5x
KPLC Kenya Power and Lighting	0.3x	n/a	KSh8.4b
SSP Sermsang Power Corporation	12.7x	19.4%	฿7.2b
PIF Polaris Renewable Energy	25.5x	36.6%	CA$258.2m
HRPK 7C Solarparken	63.6x	54.5%	€159.2m
KEGN Kenya Electricity Generating	3.9x	n/a	KSh26.2b

Price-To-Earnings vs Peers: KEGN is good value based on its Price-To-Earnings Ratio (3.9x) compared to the peer average (25.5x).

Price to Earnings Ratio vs Industry

How does KEGN's PE Ratio compare vs other companies in the Global Renewable Energy Industry?

18 Companies	Price / Earnings	Estimated Growth	Market Cap

18 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: KEGN is good value based on its Price-To-Earnings Ratio (3.9x) compared to the Global Renewable Energy industry average (14.5x).

Price to Earnings Ratio vs Fair Ratio

What is KEGN'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.

KEGN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KEGN's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.