Verbund AG Class A

VER: XWBO (AUT)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€93.00	Zqy	Jxwqxjwd

Verbund Earnings: Special Dividend to Be Paid After Strong 2023 Performance; Shares Overvalued

Tancrede Fulop

Mar 14, 2024

We confirm our EUR 59 fair value estimate based on our midcycle power price assumption of EUR 60/megawatt-hour after wide-moat Verbund released 2023 results, boosted by a jump in the achieved power price. On the back of those strong results, the firm intends to pay a special dividend of EUR 0.75 on top of the regular dividend of EUR 3.4, involving a yield of 6.0%. Otherwise, there were no real surprises in this set of results since Verbund set its 2024 guidance well below expectations on Feb. 9 because of the recent fall in wholesale power prices. All in all, we view the shares as overvalued.

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