E.ON SE

EOAN: XETR (DEU)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€47.00	Zhgfstx	Gxlzqrmph

E.On: Upgrading Economic Moat Rating to Narrow and Fair Value Estimate to EUR 16

Tancrede Fulop

Sep 16, 2024

We raise our fair value estimate for E.On to EUR 16 from EUR 15 following the upgrade of the economic moat rating from none to narrow. Our new fair value estimate offers 18% upside to the current share price. It implies a 2024 enterprise value/EBITDA of 8.9 times, P/E of 14.7 times, dividend yield of 3.4%, and free cash flow yield of negative 3%. E.On is ideally positioned to benefit from high growth in electricity networks across Europe to ease the energy transition.

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