RWE AG (RWE.DE)
Utilities · Xetra · Europe
Fundamentals
Valuation and ratings
RWE AG trades at €55.60, close to the €49.62 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 37 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 17.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About RWE AG
RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Flexible Generation; Supply & Trading; and Phaseout Technologies. The company generates wind, hydro, solar, gas, lignite, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities, as well as lignite mining and refining. The company serves commercial, industrial, and municipal customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.
RWE.DE passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is RWE AG (RWE.DE) undervalued?
Against our discounted cash flow estimate of €49.62, RWE.DE at €55.60 is 11% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is RWE.DE's P/E ratio?
RWE.DE trades at 17.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.