Societatea Energetica Electrica S.A.

BVB:EL Stock Report

Market Cap: RON 4.5b

Societatea Energetica Electrica Valuation

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

Below Fair Value: EL (RON13.2) is trading below our estimate of fair value (RON14.76)

Significantly Below Fair Value: EL 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 EL?

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

The above table shows the Price to Earnings ratio for EL. This is calculated by dividing EL's market cap by their current earnings.
What is EL's PE Ratio?
PE Ratio7.7x
EarningsRON 584.28m
Market CapRON 4.48b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.4x
TEL CNTEE Transelectrica
6.6xn/aRON 2.8b
SNN S.N. Nuclearelectrica
6.2x-26.7%RON 12.5b
TGN S.N.T.G.N. Transgaz
15.9xn/aRON 4.4b
PE Premier Energy
12.8xn/aRON 2.4b
EL Societatea Energetica Electrica
7.7x4.2%RON 4.5b

Price-To-Earnings vs Peers: EL is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
EL 7.7xIndustry Avg. 12.6xNo. of Companies11PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EL is good value based on its Price-To-Earnings Ratio (7.7x) compared to the European Electric Utilities industry average (12.6x).

Price to Earnings Ratio vs Fair Ratio

What is EL'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.

EL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ratio9.4x

Price-To-Earnings vs Fair Ratio: EL is good value based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (9.4x).

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 EL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRON 13.20
RON 14.98
+13.5%
1.2%RON 15.16RON 14.80n/a2
Jun ’25RON 13.82
RON 12.98
-6.1%
16.8%RON 15.16RON 10.80n/a2
May ’25RON 13.32
RON 13.00
-2.4%
16.9%RON 15.20RON 10.80n/a2
Apr ’25RON 13.32
RON 13.00
-2.4%
16.9%RON 15.20RON 10.80n/a2
Mar ’25RON 11.98
RON 13.00
+8.5%
16.9%RON 15.20RON 10.80n/a2
Feb ’25RON 11.50
RON 12.98
+12.9%
16.8%RON 15.16RON 10.80n/a2
Jan ’25RON 11.48
RON 12.70
+10.6%
15.0%RON 14.60RON 10.80n/a2
Dec ’24RON 9.78
RON 12.70
+29.9%
15.0%RON 14.60RON 10.80RON 12.342
Nov ’24RON 9.70
RON 12.70
+30.9%
15.0%RON 14.60RON 10.80RON 12.902
Oct ’24RON 9.91
RON 12.70
+28.2%
15.0%RON 14.60RON 10.80RON 13.642
Sep ’24RON 9.40
RON 12.70
+35.1%
15.0%RON 14.60RON 10.80RON 14.662
Aug ’24RON 9.33
RON 12.70
+36.1%
15.0%RON 14.60RON 10.80RON 16.302
Feb ’24RON 8.26
RON 13.30
+61.0%
9.8%RON 14.60RON 12.00RON 11.502
Jan ’24RON 8.09
RON 13.30
+64.4%
9.8%RON 14.60RON 12.00RON 11.482
Dec ’23RON 7.53
RON 13.30
+76.6%
9.8%RON 14.60RON 12.00RON 9.782

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 22:42
End of Day Share Price 2024/12/30 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

Societatea Energetica Electrica S.A. is covered by 7 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ioana AndreiAlpha Finance Romania
Mihai CaruntuErste Group Bank AG
Irina CretuNBG Securities Romania S.A.