Sempra Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: SRE ($77.33) is trading above our estimate of fair value ($72.96)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SRE 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/Revenue6.4x
Enterprise Value/EBITDA16.8x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SRE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
D Dominion Energy
23.2x12.1%US$45.2b
PEG Public Service Enterprise Group
20.5x5.1%US$37.4b
ED Consolidated Edison
18.4x7.1%US$33.3b
WEC WEC Energy Group
18x8.0%US$26.7b
SRE Sempra
17.1x7.4%US$49.6b

Price-To-Earnings vs Peers: SRE is good value based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (20x).


Price to Earnings Ratio vs Industry

How does SRE's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SRE is good value based on its Price-To-Earnings Ratio (17.1x) compared to the Global Integrated Utilities industry average (17.3x).


Price to Earnings Ratio vs Fair Ratio

What is SRE'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.

SRE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.1x
Fair PE Ratio20.1x

Price-To-Earnings vs Fair Ratio: SRE is good value based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).


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 SRE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$77.33
US$83.67
+8.2%
4.0%US$89.00US$75.00n/a16
May ’25US$71.95
US$82.72
+15.0%
4.4%US$89.00US$75.00n/a16
Apr ’25US$71.36
US$82.79
+16.0%
5.1%US$94.00US$75.00n/a17
Mar ’25US$69.87
US$82.35
+17.9%
5.4%US$94.00US$74.00n/a17
Feb ’25US$72.35
US$82.41
+13.9%
4.4%US$89.00US$76.00n/a17
Jan ’25US$74.73
US$81.59
+9.2%
4.9%US$89.00US$76.00n/a16
Dec ’24US$73.20
US$80.70
+10.2%
5.7%US$89.00US$73.00n/a15
Nov ’24US$70.75
US$81.37
+15.0%
5.8%US$89.00US$75.00n/a15
Oct ’24US$68.03
US$83.33
+22.5%
5.4%US$95.00US$77.00n/a15
Sep ’24US$70.06
US$83.87
+19.7%
6.2%US$96.00US$76.00n/a15
Aug ’24US$73.62
US$85.50
+16.1%
6.6%US$100.00US$74.50n/a14
Jul ’24US$72.80
US$85.93
+18.0%
6.5%US$100.00US$74.50n/a14
Jun ’24US$72.09
US$85.58
+18.7%
4.7%US$91.00US$74.50n/a13
May ’24US$78.23
US$85.27
+9.0%
4.7%US$91.00US$74.50US$71.9513
Apr ’24US$75.58
US$84.19
+11.4%
5.7%US$91.00US$74.50US$71.3613
Mar ’24US$73.93
US$85.43
+15.6%
6.0%US$96.50US$73.00US$69.8714
Feb ’24US$79.94
US$86.21
+7.8%
6.0%US$96.00US$73.00US$72.3514
Jan ’24US$77.27
US$83.50
+8.1%
7.3%US$98.00US$73.00US$74.7314
Dec ’23US$83.61
US$82.13
-1.8%
7.3%US$94.00US$73.00US$73.2015
Nov ’23US$75.73
US$81.40
+7.5%
6.9%US$91.00US$72.00US$70.7515
Oct ’23US$74.97
US$87.16
+16.3%
6.7%US$102.00US$73.00US$68.0316
Sep ’23US$84.01
US$87.16
+3.8%
6.4%US$102.00US$73.00US$70.0616
Aug ’23US$82.69
US$84.94
+2.7%
5.9%US$96.00US$72.00US$73.6216
Jul ’23US$76.78
US$85.43
+11.3%
7.0%US$96.00US$72.00US$72.8015
Jun ’23US$81.76
US$86.00
+5.2%
6.9%US$99.00US$72.00US$72.0915
May ’23US$80.68
US$86.09
+6.7%
6.9%US$99.00US$71.50US$78.2316

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


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