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Iberdrola S.A. (IBE) Fair Value & Analysis

Utilities · ES · Market cap €138B · ISIN ES0144580Y14

What is Iberdrola S.A. really worth?

IS Iberdrola S.A. IBE · MC
Price€19.89
Fair Value€8.45
Upside−57.5%
Quality44/100

Below-average quality, and trading another 135% above our fair value of €8.45.

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Strengths

Solidly profitable · 13.8% net margin
Moderate debt · generates free cash flow

Risks

!Weak Growth (revenue 5y +6.6 %/yr)
!Trails peers (5/15)
!Moderate moat 56/100
!The models disagree: range €7.06 to €17.90

For context

·3.47% dividend yield
Evidence: High Range €7.06 – €17.90

Fair value as of: Aug 30, 2026

From 23 valuation models · updated 6 days ago

Share price −3.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (€17.90). The favourable scenario is already priced in.
  • Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (€7.06 to €17.90) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

€21.41 €6.99 Fair Value €8.45 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range €6.99 – €21.41 · fair‑value band €7.06 – €17.90 · the €19.89 price screens above the €8.45 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Iberdrola S.A. (IBE) currently trades at €19.89, while our model-based Fair Value estimate is €8.45, implying the stock looks roughly 135.4% overvalued today. The Quality Score stands at 44/100 (below-average quality), in the Utilities sector. Bull case: the Multiples group reads highest at a median of €16.25 per share, and 0 of the 23 models we run sit above the €19.89 price. Bear case: the Dividend Discount group reads lowest at €2.71, and 23 of the 23 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Iberdrola S.A. generated revenue of €43.5B at a net margin of 13.8%. Revenue declined 4.5% year over year. It earns a return on equity of 10.0%. Net debt stands at €56.1B. Fundamentals as of Aug 30, 2026

Our scenario range runs from €7.06 (bear case) to €17.90 (bull case); at €19.89, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 3% below its 52-week high and 34% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at −35% fair-value upside, at −58%, IBE screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €0.0747 per share, which is 0.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV best evidence €6.57 €8.64 €10.45 74
5Y EBITDA Exit €4.79 €12.82 €21.99 69
ROIC Compounder €6.57 €9.07 €12.38 69
All 23 models by family
DCF Models
Owner Earnings €0.5400 €3.54 €7.90 66
5Y Revenue Exit €2.16 €8.08 €15.58 65
5Y EBITDA Exit €4.79 €12.82 €21.99 69
5Y P/E Exit €2.12 €8.00 €13.98 64
10Y Revenue Exit €4.41 €10.79 62
10Y EBITDA Exit €1.54 €7.63 €15.51 60
10Y P/E Exit €4.35 €9.61 59
Earnings-Based
Graham-Dodd €6.50 €16.45 €21.38 63
PEG = 1.0 €3.04 €4.35 €5.65 55
EPV best evidence €6.57 €8.64 €10.45 74
Dividend Discount
Gordon GGM €1.78 €3.41 €5.73 64
DDM Multi-Stage €1.78 €2.71 €3.71 64
Multiples
P/E Multiple €12.90 €17.21 €21.51 63
P/S Multiple €12.19 €16.25 €20.31 58
P/B Multiple €10.28 €13.71 €17.13 55
EV/EBIT €11.73 €17.59 €23.45 65
EV/EBITDA €11.81 €17.69 €23.58 66
EV/Revenue €6.27 €11.46 €16.66 52
Asset-Based
NCAV (Graham) €3.81 €5.10 €7.61 54
Growth DCF
Rev-Margin DCF €2.16 €7.98 €14.23 66
Economic Profit
Residual Income €7.15 €8.70 €19.50 68
ROIC Compounder €6.57 €9.07 €12.38 69
Growth Earnings
Growth-Adj P/E €10.11 €14.45 €18.78 65

Widest divergence: Multiples (€16.25) versus Dividend Discount (€2.71). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 25.6
P/S ratio 3.53 P/E × margin
EPS (TTM) €0.8000 price ÷ EPS = P/E 25.6
Dividend yield 3.5% payout 86.3%
Net margin 13.8% FY2025
Return on equity 10.0% TTM
More key figures
Profitability
Return on assets (EBIT) 5.8% avg 5y
Operating margin 21.6% TTM
Growth
Revenue (TTM) €43.5B TTM
Revenue growth (YoY) −4.5% 3y avg −5.5%
EPS growth (YoY) −18.6%
Balance sheet & cash flow
Free cash flow €1.2B FY2025
Net debt €56.1B FY2025 · ≈ 47.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 42 · Market factors (momentum, volatility) 73

Profitability 35
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 39
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 59
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 64
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Iberdrola, S.A. engages in the generation, production, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia.

Full company description

Iberdrola, S.A. engages in the generation, production, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, photovoltaic, hydro, other energy sources, conventional nuclear, and combined cycle plants, as well as through batteries. The company is involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 46,177 MW. In addition, the company offers heat pumps, self-consumption, solar, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is headquartered in Bilbao, Spain.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Iberdrola S.A. reported revenue of €45.5B in FY2025 versus €39.1B in FY2021, a compound +3.9%/yr. Reported net income was €6.3B in FY2025, compounding +12.8%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€45.5B
Latest YoY
+1.8%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−5.5%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.6%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−12.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+14.4% (10.9 + 3.5)
Revenue +3.9%/yr
FY21 €39.1B
FY22 €53.9B
FY23 €49.3B
FY24 €44.7B
FY25 €45.5B
Net income +12.8%/yr
FY21 €3.9B
FY22 €4.3B
FY23 €4.8B
FY24 €5.6B
FY25 €6.3B
Character of growth · EPS growth decomposed (2014-2025) +9.3 % p.a.
Revenue per share +5.0 %

of which total revenue +4.9 % · buybacks/dilution +0.1 %

EBIT margin +4.8 %
Tax rate −0.2 %
Residual (interest, one-offs) −0.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

IBE screens 135% overvalued. Compare with Enel SpA →

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Cite: Fair Value Calculator (2026). "Iberdrola S.A. Fair Value". https://www.fairvalue-calculator.com/stock/IBE

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Utilities - Diversified · 52 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 44 · Below median
Fair Value upside −58% · Bottom 25%
Return on equity (TTM) 10% · Above median
Return on assets 4% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 22% · Above median
Revenue growth −5% · Below median
Dividend yield (TTM) 3.5% · Below median
Debt / equity 0.84× · Lower than median

Valuation Multiples vs Utilities - Diversified median · lower = cheaper

P/E (TTM) 25.6× · Pricier than median
P/B 3.20× · Pricier than 75% of peers
P/S (TTM) 3.68× · Pricier than 75% of peers
P/FCF 134.5× · Pricier than 75% of peers
EV/EBITDA 14.3× · Pricier than 75% of peers
PEG 3.50× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 5
FUTURE0 · sector 6
PAST40 · sector 37
HEALTH58 · sector 48
DIVIDEND69 · sector 81

VALUE 0: the price sits above our fair-value range.

Insider activity: 35/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

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Sempra SRE $84.57 $44.47 −47%
E.ON SE EOAN €17.83 €11.71 −34%
RWE Aktiengesellschaft generates and RWE €59.10 €55.77 −6%
ACWA Power Company 2082 184.00 SAR 24.19 SAR −87%
Brookfield Infrastructure Partners L.P. BIPUN C$54.99 C$34.34 −38%
EnBW Energie Baden-Württemberg AG EBK €68.60 €21.11 −69%
EDP, S.A EDP €4.70 €3.81 −19%
Origin Energy Limited ORG A$11.89 A$7.70 −35%

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Frequently asked questions

Is Iberdrola S.A. (IBE) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of €8.45 versus a price of €19.89, about −58% upside (overvalued).
What is the fair value of IBE?
Our model-based fair value for Iberdrola S.A. is €8.45 (as of Aug 30, 2026), built from audited fundamentals. The current price: €19.89.
What is the quality score of IBE?
Iberdrola S.A. has a Quality Score of 44/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Iberdrola S.A. (IBE)?
Iberdrola S.A. reported trailing-twelve-month revenue of about €43.5B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of IBE?
The net profit margin of Iberdrola S.A. is about 13.8%, meaning it keeps roughly 13.8% of revenue as net income. Based on the latest reported figures.
Does Iberdrola S.A. pay a dividend?
Iberdrola S.A. currently shows a dividend yield of about 3.47% relative to its recent price (as of Aug 30, 2026).
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