RWE Valuation

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

Discounted Cash Flow
Simply Wall St
zł123.73
Fair Value
1.5% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: RWE (PLN121.9) is trading below our estimate of fair value (PLN123.73)

Significantly Below Fair Value: RWE is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RWE. This is calculated by dividing RWE's market cap by their current earnings.
What is RWE's PE Ratio?
PE Ratio7.5x
Earnings€2.82b
Market Cap€21.18b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.6x
1816 CGN Power
10.8x6.3%HK$181.3b
601985 China National Nuclear Power
17.6x9.6%CN¥180.5b
600886 SDIC Power Holdings
14.6x9.7%CN¥105.8b
PEP Polenergia
15.2x-23.9%zł5.3b
RWE RWE
7.5x-5.2%zł21.2b

Price-To-Earnings vs Peers: RWE is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (14.6x).


Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
RWE 7.5xIndustry Avg. 15.6xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RWE is good value based on its Price-To-Earnings Ratio (7.5x) compared to the European Renewable Energy industry average (15.6x).


Price to Earnings Ratio vs Fair Ratio

What is RWE'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.

RWE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RWE'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?

The above table shows the analyst RWE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentzł121.90
zł181.05
+48.5%
10.0%zł212.57zł145.40n/a17
Jan ’26n/a
zł183.73
0%
9.8%zł212.93zł145.65n/a17
Dec ’25n/a
zł187.82
0%
10.8%zł226.24zł147.38n/a17
Nov ’25zł129.85
zł193.47
+49.0%
10.3%zł228.57zł148.90n/a17
Oct ’25n/a
zł189.79
0%
11.5%zł225.19zł146.69n/a18
Sep ’25n/a
zł191.42
0%
11.4%zł224.59zł146.30n/a18
Aug ’25n/a
zł195.95
0%
13.4%zł255.16zł146.66n/a18
Jul ’25zł139.95
zł200.79
+43.5%
12.7%zł258.64zł148.66n/a18
Jun ’25n/a
zł196.89
0%
13.1%zł253.77zł145.87n/a18
May ’25zł139.05
zł199.63
+43.6%
13.2%zł257.61zł148.07n/a18
Apr ’25zł135.95
zł203.20
+49.5%
11.8%zł256.59zł155.25n/a18
Mar ’25zł134.50
zł213.90
+59.0%
13.3%zł256.84zł155.40n/a18
Feb ’25zł151.70
zł227.23
+49.8%
8.6%zł259.95zł187.86n/a18
Jan ’25zł150.65
zł229.07
+52.1%
8.6%zł260.23zł186.50n/a18
Dec ’24zł170.00
zł223.08
+31.2%
8.3%zł252.80zł185.82n/a18
Nov ’24zł159.00
zł229.21
+44.2%
7.2%zł260.25zł191.29zł129.8518
Oct ’24zł163.85
zł243.63
+48.7%
5.8%zł271.39zł208.76n/a18
Sep ’24zł181.50
zł237.44
+30.8%
6.2%zł268.59zł201.44n/a19
Aug ’24n/a
zł231.92
0%
5.8%zł265.27zł212.21n/a19
Jul ’24zł181.90
zł232.41
+27.8%
5.2%zł260.25zł213.54zł139.9519
Jun ’24n/a
zł234.67
0%
4.9%zł264.40zł216.94n/a18
May ’24n/a
zł236.06
0%
4.8%zł256.83zł213.26zł139.0519
Apr ’24n/a
zł237.38
0%
5.6%zł262.56zł210.98zł135.9518
Mar ’24n/a
zł245.09
0%
6.4%zł278.51zł212.42zł134.5017
Feb ’24n/a
zł245.45
0%
6.3%zł277.82zł211.90zł151.7017
Jan ’24n/a
zł240.35
0%
8.2%zł276.63zł192.23zł150.6517
Analyst Price Target
Consensus Narrative from 17 Analysts
zł180.81
Fair Value
32.6% undervalued intrinsic discount
17
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/25 17:30
End of Day Share Price 2025/01/23 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

RWE Aktiengesellschaft is covered by 52 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Juan RodriguezAlphaValue
Borja Pagoaga SoraluceBanco BPI, S.A.
Jorge González SadornilBanco de Sabadell. S.A.