Saudi Electricity Valuation

Q: What is the Fair Price of 5110 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

5110 (SAR17.22) is trading above our estimate of [[fair value]] (SAR4.68)

Is 5110 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 5110 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow

Simply Wall St

ر.س4.68

Fair Value

268.3% overvalued

Number of Analysts

Below Fair Value: 5110 (SAR17.22) is trading above our estimate of fair value (SAR4.68)

Significantly Below Fair Value: 5110 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5110?

Key metric: As 5110 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5110. This is calculated by dividing 5110's market cap by their current earnings.
What is 5110's PE Ratio?
PE Ratio	20.3x
Earnings	ر.س3.54b
Market Cap	ر.س72.00b

5110 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	2.5x
Enterprise Value/EBITDA	6.3x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does 5110's PE Ratio compare to its peers?

The above table shows the PE ratio for 5110 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	53.5x
2082 ACWA Power	157.1x	22.6%	ر.س288.5b
H Hydro One	23.7x	6.8%	CA$27.0b
EIX Edison International	14.7x	13.5%	US$19.4b
TENAGA Tenaga Nasional Berhad	18.7x	8.7%	RM 80.8b
5110 Saudi Electricity	20.3x	27.1%	ر.س71.7b

Price-To-Earnings vs Peers: 5110 is good value based on its Price-To-Earnings Ratio (20.3x) compared to the peer average (53.5x).

Price to Earnings Ratio vs Industry

How does 5110's PE Ratio compare vs other companies in the Asian Electric Utilities Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 5110 is expensive based on its Price-To-Earnings Ratio (20.3x) compared to the Asian Electric Utilities industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is 5110'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.

5110 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 5110'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 5110 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	ر.س17.22	ر.س19.40 +12.7%	10.2%	ر.س22.20	ر.س18.00	n/a	3
Feb ’26	ر.س17.02	ر.س19.40 +14.0%	10.2%	ر.س22.20	ر.س18.00	n/a	3
Jan ’26	ر.س17.00	ر.س19.40 +14.1%	10.2%	ر.س22.20	ر.س18.00	n/a	3
Dec ’25	ر.س16.66	ر.س20.07 +20.4%	8.5%	ر.س22.20	ر.س18.00	n/a	3
Nov ’25	ر.س16.40	ر.س19.07 +16.3%	4.3%	ر.س20.00	ر.س18.00	n/a	3
Oct ’25	ر.س16.80	ر.س19.07 +13.5%	4.3%	ر.س20.00	ر.س18.00	n/a	3
Sep ’25	ر.س17.26	ر.س19.07 +10.5%	4.3%	ر.س20.00	ر.س18.00	n/a	3
Aug ’25	ر.س17.10	ر.س19.83 +16.0%	8.3%	ر.س22.00	ر.س18.00	n/a	3
Jul ’25	ر.س16.46	ر.س19.50 +18.5%	6.3%	ر.س21.00	ر.س18.00	n/a	3
Jun ’25	ر.س16.72	ر.س19.80 +18.4%	6.5%	ر.س21.00	ر.س18.00	n/a	3
May ’25	ر.س18.36	ر.س22.13 +20.6%	9.2%	ر.س25.00	ر.س20.40	n/a	3
Apr ’25	ر.س19.70	ر.س22.13 +12.4%	9.2%	ر.س25.00	ر.س20.40	n/a	3
Mar ’25	ر.س20.00	ر.س20.55 +2.8%	2.2%	ر.س21.00	ر.س20.10	n/a	2
Feb ’25	ر.س18.72	ر.س20.55 +9.8%	2.2%	ر.س21.00	ر.س20.10	ر.س17.02	2
Jan ’25	ر.س19.12	ر.س20.30 +6.2%	3.4%	ر.س21.00	ر.س19.60	ر.س17.00	2
Dec ’24	ر.س18.06	ر.س20.30 +12.4%	3.4%	ر.س21.00	ر.س19.60	ر.س16.66	2
Nov ’24	ر.س17.70	ر.س24.10 +36.2%	12.0%	ر.س27.00	ر.س21.20	ر.س16.40	2
Oct ’24	ر.س19.00	ر.س24.10 +26.8%	12.0%	ر.س27.00	ر.س21.20	ر.س16.80	2
Sep ’24	ر.س20.70	ر.س24.10 +16.4%	12.0%	ر.س27.00	ر.س21.20	ر.س17.26	2
Aug ’24	ر.س22.10	ر.س23.90 +8.1%	13.0%	ر.س27.00	ر.س20.80	ر.س17.10	2
Jul ’24	n/a	ر.س23.90 0%	13.0%	ر.س27.00	ر.س20.80	ر.س16.46	2
Jun ’24	ر.س21.20	ر.س23.90 +12.7%	13.0%	ر.س27.00	ر.س20.80	ر.س16.72	2
May ’24	ر.س24.32	ر.س25.45 +4.6%	6.1%	ر.س27.00	ر.س23.90	ر.س18.36	2
Apr ’24	ر.س23.36	ر.س25.45 +8.9%	6.1%	ر.س27.00	ر.س23.90	ر.س19.70	2
Mar ’24	ر.س21.78	ر.س25.40 +16.6%	6.3%	ر.س27.00	ر.س23.80	ر.س20.00	2
Feb ’24	ر.س23.22	ر.س25.40 +9.4%	6.3%	ر.س27.00	ر.س23.80	ر.س18.72	2

Analyst Price Target

Consensus Narrative from 3 Analysts

ر.س19.40

Fair Value

11.2% undervalued

Number of Analysts

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

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Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2025/02/16 14:22
End of Day Share Price	2025/02/16 00:00
Earnings	2024/09/30
Annual Earnings	2023/12/31

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.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* 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.

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 Github.

Analyst Sources

Saudi Electricity Company is covered by 16 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.

Analyst	Institution
Salma Kharbachi	AlphaMena
Kais Kriaa	AlphaMena
Jaap Meijer	Arqaam Capital Research Offshore S.A.L.