[EUROPE // RESEARCH]
EQUITY RESEARCH[EU]
Repsol: multiple discounts mask the underlying operational cash generation
Current market valuation for the integrated energy group presents a sharp disconnect between prevailing sentiment and fundamental cash conversion. Trading at a trailing PER of 8.80x and an EV/EBITDA of 4.83x, the equity price aggressively prices in cyclical deterioration. Our institutional desk analyzes how a free cash flow figure of 301.38 million euros challenges conventional terminal assumptions.
KEY TAKEAWAYS
- Market valuation reflects a trailing PER of 8.80x alongside an EV/EBITDA multiple of 4.83x.
- Reported free cash flow reaches 301.38 million euros, supporting ongoing capital allocation priorities.
- Operating profitability remains supported by an EBIT margin of 15.3% across core segments.
- Market capitalization stands at 29.48 billion euros accompanied by a return on equity of 13.3%.
