Relative Value

The Relative Value of one SSE stock under the Base Case scenario is 2 541.52 GBX. Compared to the current market price of 1 544 GBX, SSE PLC is Undervalued by 39%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

SSE Relative Value
Base Case
2 541.52 GBX
Undervaluation 39%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
76
vs Industry
47
Median 3Y
1.8
Median 5Y
1.8
Industry
1.6
Forward
1.7
vs History
50
vs Industry
56
Median 3Y
10.2
Median 5Y
9.1
Industry
14.5
Forward
9.4
vs History
88
vs Industry
48
Median 3Y
7.3
Median 5Y
8.6
Industry
6.9
vs History
68
vs Industry
23
Median 3Y
23.9
Median 5Y
24.7
Industry
14.1
vs History
98
vs Industry
42
Median 3Y
1.9
Median 5Y
1.9
Industry
1.4
vs History
77
vs Industry
51
Median 3Y
2.4
Median 5Y
2.8
Industry
2.7
Forward
2.3
vs History
88
vs Industry
62
Median 3Y
5.8
Median 5Y
6.4
Industry
7.3
vs History
98
vs Industry
65
Median 3Y
7.4
Median 5Y
9
Industry
10.3
Forward
7
vs History
82
vs Industry
64
Median 3Y
8.6
Median 5Y
9.6
Industry
14.6
Forward
9.8
vs History
88
vs Industry
54
Median 3Y
9.6
Median 5Y
13.2
Industry
11
vs History
20
vs Industry
3
Median 3Y
28.7
Median 5Y
38.9
Industry
16.5
vs History
98
vs Industry
39
Median 3Y
1.1
Median 5Y
1.1
Industry
0.9

Multiples Across Competitors

SSE Competitors Multiples
SSE PLC Competitors

Market Cap P/S P/E EV/EBITDA EV/EBIT
UK
SSE PLC
LSE:SSE
17.1B GBP 1.7 8.9 6 7.7
US
Nextera Energy Inc
NYSE:NEE
139B USD 5.6 20 16.4 29.7
ES
Iberdrola SA
MAD:IBE
91.9B EUR 2.1 16.4 7.2 11.9
US
Southern Co
NYSE:SO
96.5B USD 3.6 21.9 12.6 22.1
US
Duke Energy Corp
NYSE:DUK
90.3B USD 3 20.5 11.8 21.4
IT
Enel SpA
MIL:ENEL
71.3B EUR 1 10.1 5.6 8.3
US
Constellation Energy Corp
NASDAQ:CEG
67.4B USD 2.9 18 10.3 16.8
US
American Electric Power Company Inc
NASDAQ:AEP
54.5B USD 2.8 18.4 12.2 21.6
FR
Electricite de France SA
PAR:EDF
46.6B EUR 0.3 -2.5 -5.4 -3.2
US
Exelon Corp
NASDAQ:EXC
44.5B USD 1.9 18.1 11.3 20.7
US
Xcel Energy Inc
NASDAQ:XEL
39.4B USD 2.9 20.3 12.8 28.2
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
UK
SSE PLC
LSE:SSE
Average EV/EBITDA: 10.6
6
5%
1.2
US
Nextera Energy Inc
NYSE:NEE
16.4
19%
0.9
ES
Iberdrola SA
MAD:IBE
7.2
-1%
N/A
US
Southern Co
NYSE:SO
12.6
7%
1.8
US
Duke Energy Corp
NYSE:DUK
11.8
7%
1.7
IT
Enel SpA
MIL:ENEL
5.6
3%
1.9
US
Constellation Energy Corp
NASDAQ:CEG
10.3
-5%
N/A
US
American Electric Power Company Inc
NASDAQ:AEP
12.2
11%
1.1
FR
Electricite de France SA
PAR:EDF
Negative Multiple: -5.4 N/A N/A
US
Exelon Corp
NASDAQ:EXC
11.3
10%
1.1
US
Xcel Energy Inc
NASDAQ:XEL
12.8
14%
0.9
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
UK
SSE PLC
LSE:SSE
Average EV/EBIT: 18.8
7.7
2%
3.9
US
Nextera Energy Inc
NYSE:NEE
29.7
24%
1.2
ES
Iberdrola SA
MAD:IBE
11.9
1%
11.9
US
Southern Co
NYSE:SO
22.1
6%
3.7
US
Duke Energy Corp
NYSE:DUK
21.4
8%
2.7
IT
Enel SpA
MIL:ENEL
8.3
2%
4.1
US
Constellation Energy Corp
NASDAQ:CEG
16.8
2%
8.4
US
American Electric Power Company Inc
NASDAQ:AEP
21.6
13%
1.7
FR
Electricite de France SA
PAR:EDF
Negative Multiple: -3.2 N/A N/A
US
Exelon Corp
NASDAQ:EXC
20.7
9%
2.3
US
Xcel Energy Inc
NASDAQ:XEL
28.2
22%
1.3