Federal Grid Company of Unified Energy System Valuation

Q: What is the Fair Price of FEES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FEES (RUB0.09) is trading below our estimate of [[fair value]] (RUB0.44)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: FEES (RUB0.09) is trading below our estimate of fair value (RUB0.44)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FEES. This is calculated by dividing FEES's market cap by their current earnings.
What is FEES's PE Ratio?
PE Ratio	2x
Earnings	₽55.61b
Market Cap	₽113.03b

FEES 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	1.2x
Enterprise Value/EBITDA	2.4x
PEG Ratio	-0.05x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FEES 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	5.1x
RSTI Rosseti	2.1x	n/a	₽121.1b
MSNG Mosenergo	11.8x	n/a	₽76.8b
LSNG Rosseti Lenenergo	3.8x	n/a	₽72.4b
IRAO Inter RAO UES	2.6x	n/a	₽250.0b
FEES Federal Grid Company of Unified Energy System	2x	-40.5%	₽113.0b

Price-To-Earnings vs Peers: FEES is good value based on its Price-To-Earnings Ratio (2x) compared to the peer average (5.1x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: FEES is good value based on its Price-To-Earnings Ratio (2x) compared to the Russian Electric Utilities industry average (4.8x).

Price to Earnings Ratio vs Fair Ratio

What is FEES'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.

FEES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2x
Fair PE Ratio	4.1x

Price-To-Earnings vs Fair Ratio: FEES is good value based on its Price-To-Earnings Ratio (2x) compared to the estimated Fair Price-To-Earnings Ratio (4.1x).

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.

Discover undervalued companies

Rosseti Centre

₽10.4b

Public Joint Stock Company Rosseti Centre operates as a power grid company in Russia.

MRKC

₽0.25

-39.0%

Territorial Generation Company No.2

₽4.0b

Public Joint-Stock Company Territorial Generation Company No.2 engages in the production and sale of electricity and heat in the Northwestern and Central Federal districts of Russia.

TGKB

₽0.0037

-12.2%

Magadanenergo

₽3.3b

Public Joint Stock Company Magadanenergo, together with its subsidiaries, engages in the generation, transmission, and distribution of electricity, gas, and steam in Russia.

MAGE

₽5.43

-28.0%