[EUROPE // RESEARCH]
EQUITY RESEARCH[EU]
IBE.MC: grid expansion strategy and capital allocation amid high-voltage capacity demand
Iberdrola's fundamental valuation requires auditing the 2.56 billion euro free cash flow conversion against current market multiples. Capital quality in European utilities is anchored by regulated grid asset returns.
KEY TAKEAWAYS
- Iberdrola records a market capitalization of 133.66 billion euros with a P/E multiple of 25.04x.
- Gross margin reaches 53.9% while the EBIT margin stands at 24.5% in the latest financial filings.
- Free cash flow (FCF) generation amounts to 2.56 billion euros under current regulatory frameworks.
- The EV/EBITDA multiple of 13.64x and 10.0% ROE reflect the valuation of regulated network assets.
