Snam SpA
MIL:SRG

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Snam SpA
MIL:SRG
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Price: 6.582 EUR -0.69% Market Closed
Market Cap: €22.1B

EV/OCF

13.3
Current
23%
Cheaper
vs 3-y average of 17.2

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
13.3
=
Enterprise Value
€36.5B
/
Operating Cash Flow
€2.7B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
13.3
=
Enterprise Value
€36.5B
/
Operating Cash Flow
€2.7B

Valuation Scenarios

Snam SpA is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (17.2), the stock would be worth €8.52 (29% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-17%
Maximum Upside
+29%
Average Upside
7%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 13.3 €6.58
0%
3-Year Average 17.2 €8.52
+29%
5-Year Average 17.2 €8.52
+29%
Industry Average 11.3 €5.59
-15%
Country Average 11.1 €5.49
-17%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
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Market Distribution

In line with most companies in Italy
Percentile
63nd
Based on 752 companies
63nd percentile
13.3
Low
0.7 — 7
Typical Range
7 — 14.7
High
14.7 —
Distribution Statistics
Italy
Min 0.7
30th Percentile 7
Median 11.1
70th Percentile 14.7
Max 4 040.2

Snam SpA
Glance View

In the dynamic world of energy infrastructure, Snam SpA stands out as a stalwart with a rich heritage dating back to 1941. As one of Europe’s leading energy infrastructure companies, Snam has carved its niche by focusing primarily on the transmission and storage of natural gas. The company operates a vast network across Italy, which forms the backbone of its operations, transporting natural gas efficiently across the country. This infrastructure mastery is not just limited to domestic terrains; Snam ambitiously extends its reach through strategic international investments, enhancing its influence in the broader European energy market. The core of Snam’s business operations involves maintaining and expanding its extensive pipeline network, which ensures a steady flow of revenue through tariffs and fees levied on the transportation of natural gas. Financially, Snam thrives by tapping into the growing demand for cleaner energy solutions, positioning itself favorably in a world increasingly turning away from coal and oil. It generates significant income from long-term contracts with utility companies, offering consistent and predictable cash flows. Moreover, Snam invests in future-forward initiatives like hydrogen and biomethane developments, aligning with global energy transition trends while diversifying its business model. This strategic pivot not only reinforces their commitment to sustainability but also sets the stage for potential new revenue streams. Through meticulous management and forward-thinking strategies, Snam continues to bolster its market position, demonstrating resilience and adaptability in an ever-evolving energy landscape.

SRG Intrinsic Value
4.617 EUR
Overvaluation 30%
Intrinsic Value
Price €6.582
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