Hera S.p.A (HER) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Hera S.p.A stock €3.21, price €3.74, that is 14.2% below the price, quality 54 out of 100. Rating: overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range €1.70 – €4.24 · fair‑value band €2.09 – €6.30 · the €3.74 price screens above the €3.21 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
Follow Hera S.p.A in your weekly email
Every Wednesday you see whether Hera S.p.A is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Hera S.p.A., a multi-utility company, engages in the waste management, water services, and energy businesses in Italy.
Show moreShow less
It is involved in the sale and distribution of methane and natural gas, as well as in the district heating and heating management business; generation, distribution, and sale of electricity; aqueduct, purification, and sewage services related to water cycle; waste collection, treatment, recycling, and disposal services; and provision of public lighting, telecommunications, and other services.
The company's water services include activities related to water collection, drinking water treatment, and distribution for civil and industrial applications, as well as sewerage and sewage treatment activities.
It also offers environmental services comprising sweeping, waste collection, transport, and recovery and disposal, and technical call center services. The company serves residential and business customers, as well as consumer associations.
Hera S.p.A. was founded in 2002 and is based in Bologna, Italy.
Stock analysis
Hera S.p.A (HER) currently trades at €3.74, while our model-based Fair Value estimate is €3.21, 14% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the Multiples group reads highest at a median of €5.59 per share, and 11 of the 23 models we run sit above the €3.74 price.
Bear case: the Economic Profit group reads lowest at €1.95, and 12 of the 23 models stay below the price. Data coverage for this calculation is high.
Scenario range: €2.09 (bear) to €6.30 (bull), the price of €3.74 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 54/100 (solid quality), in the Utilities sector.
Mixed Growth: Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.
Hera S.p.A reported revenue of €13.0B in FY2025 versus €10.6B in FY2021, a compound +5.3%/yr. Reported net income was €464M in FY2025, compounding +8.6%/yr from FY2021.
Key figures
Market cap €5.5B Mid · P/E ratio 11.7 · P/S ratio 0.43 · EPS (TTM) €0.3200 · Dividend yield 4.3% · Net margin 3.7% · Return on equity 12.1% · Return on assets (EBIT) 4.1% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 46 out of 100 (medium confidence).
What moves the price
The share trades about 12% below its 52-week high and 9% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Utilities peers we cover trades at −47% fair-value upside, at −14%, HER screens cheaper than that median.
Fair Value models
Bear€2.09Fair Value €3.21Bull€6.30
Price €3.74 · Downside -14.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (€0.1372 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+10.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.6%
Dividend (yield on the price)4.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.6.6% vs 9.9%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.8% → 6%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+31.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+1.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (euro area: IMF forecast 2.2% a year to 2030, 2.6% from 2016 to 2025) that is about +28.3% a year for the price and −0.8% for the forecasts.
AI conclusion: Regulated infrastructure delivers stable long-term returns, yet thin margins, lack of differentiation and debt exceeding equity remain the core limitations.
Main risk: Antitrust fines or ARERA tariff caps could restrict pricing power in district heating and energy distribution, squeezing margins on regulated and liberalised activities.
Bull case: Hera could leverage its AI-driven efficiency gains in waste sorting and network management plus green hydrogen investments to secure more concessions and outpace rivals on costs and sustainability offerings.
Bear case: If regulatory caps tighten further and rivals capture key tenders, Hera's capital-intensive projects might deliver insufficient cash flows, eroding its ability to maintain infrastructure and service quality over time.
Hera is stepping up investments in infrastructure and green hydrogen across its waste, water and energy businesses to secure long-term regulated returns. Recent half-year figures already showed solid profit growth alongside heavier capital outlays, yet the question remains whether earnings will scale fast enough to match the spending trajectory. Will the upcoming results show these projects delivering cash flows on schedule, or will the capital intensity continue to outpace near-term returns?
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer Groupⓘ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.Utilities - Diversified · 49 stocks
Beats the industry median on 9/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score54 · Top 25%
Fair Value upside−14.2% · Above median
Profitability
Return on equity (12 months)12.1% · Above median
Return on assets3.3% · Above median
Net margin (12 months)3.7% · Bottom 25%
Operating margin (12 months)4.8% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)21.7% · Top 25%
Dividend yield (12 months)4.3% · Above median
Balance sheet
Debt / equity1.05× · Above median
Valuation Multiplesvs Utilities - Diversified median · lower = cheaper
P/E (12 months)11.7× · Cheapest 25%
P/B1.34× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)0.43× · Cheapest 25%
Price / free cash flow (fiscal year)27.8× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Hera S.p.A Fair Value". https://www.fairvalue-calculator.com/stock/HER
Frequently asked questions
Is Hera S.p.A (HER) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of €3.21 versus a price of €3.74, about 14% lower (overvalued).
What is the fair value of HER?
Our model-based fair value for Hera S.p.A is €3.21 (as of Nov 7, 2026), built from audited fundamentals. The current price: €3.74.
What is the quality score of HER?
Hera S.p.A has a Quality Score of 54/100. 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 price target for Hera S.p.A (HER)?
Our model-based price target is the fair value of €3.21 (as of Nov 7, 2026) from 24 valuation models. Cautious scenario €2.09, optimistic scenario €6.30. It is a calculation from audited fundamentals, not an analyst target.
What is the Hera S.p.A stock forecast for 2026?
Our models put fair value at €3.21, about 14% lower versus a price of €3.74 (overvalued). Cautious scenario €2.09, optimistic scenario €6.30. The calculation is refreshed regularly with new filings.
What is the revenue of Hera S.p.A (HER)?
Hera S.p.A reported trailing-twelve-month revenue of about €12.7B (latest available figure, as of Nov 7, 2026).
Does Hera S.p.A pay a dividend?
Hera S.p.A currently shows a dividend yield of 4.28% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of Hera S.p.A (HER) and when is the ex-dividend date?
Hera S.p.A pays a dividend of €0.16 per share a year, a dividend yield of 4.3%. The last ex-dividend date was Jun 22, 2026. A dividend has been paid every year since at least 2004. The payout ratio is 50.0% of earnings. Free cash flow covers the dividend 0.83 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What growth is priced into Hera S.p.A (HER)?
For today's price to be fair in a discounted-cash-flow model, Hera S.p.A would have to grow free cash flow by +31.1 % per year for five years (discount rate 11.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.9 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of HER use?
Our models discount Hera S.p.A at 11.4 %: a base by market capitalisation (mid), damped by beta 0.83, country premium for Italy. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Hera S.p.A that is +31.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.4 %) and the same formula as our fair value.
How much growth has Hera S.p.A (HER) delivered so far?
Over the past 5 years revenue at Hera S.p.A grew +12.9 % a year. The price currently implies free-cash-flow growth of +31.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Hera S.p.A (HER) growing?
The median revenue growth in the sector is +4.8 % a year. That is the yardstick for the growth priced into Hera S.p.A (+31.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Hera S.p.A (HER)?
The free-cash-flow yield on the price is 3.60 %: that much free cash flow Hera S.p.A produces per unit of market value. When it exceeds the discount rate of our models (11.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Hera S.p.A (HER)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Hera S.p.A it is €3.21 per share (as of Nov 7, 2026), against a price of €3.74. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Hera S.p.A stock overvalued or undervalued in 2026?
As of Nov 7, 2026, HER trades above its calculated fair value: price €3.74, fair value €3.21, a gap of about −14% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HER?
No. The price is what the market pays today (€3.74); the fair value is what the company's own numbers justify (€3.21). For Hera S.p.A the two are €0.5320 per share apart. That gap is exactly why we show both numbers side by side.
How much is Hera S.p.A worth?
The market values Hera S.p.A at about €5.5B (market capitalisation, as of Nov 7, 2026). Per share that is €3.74; our models calculate a fair value of €3.21 per share.
What do the bullish and bearish scenarios say about HER?
Our models span a range for Hera S.p.A: cautious scenario €2.09, base €3.21, optimistic €6.30 per share (as of Nov 7, 2026, price €3.74). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HER?
Hera S.p.A trades at a price-to-earnings ratio of 11.7 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of €3.21 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2025 ex one-offs: 14.4. Other multiples: PEG 2.5, P/B 1.3, P/S 0.4, EV/EBITDA 6.3.
What is the PEG ratio of HER?
The PEG ratio of Hera S.p.A is 2.53 (P/E divided by earnings growth, as of Nov 7, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Hera S.p.A (HER)?
Balance-sheet figures for Hera S.p.A (as of Nov 7, 2026): return on equity 12.1%, debt of 1.05 per unit of equity. They feed the Quality Score of 54/100, which measures business quality independently of the share price.
How far is HER from its 52-week high?
Hera S.p.A trades at €3.74, about 12% below its 52-week high of €4.24 and 9% above the low of €3.43 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of €3.21 is for.
Which stocks are comparable to Hera S.p.A?
From the same area (Utilities) we also value Iberdrola, S.A, Enel SpA, Engie SA, E.ON SE, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Hera S.p.A stock attractive at the current price?
The data as of Nov 7, 2026: price €3.74, calculated fair value €3.21 (−14%), Quality Score 54/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HER calculated?
We run Hera S.p.A through 24 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of €3.21 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Hera S.p.A itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Hera S.p.A (HER)?
The closing price on Nov 6, 2026 was €3.74. Our model-based fair value is €3.21, about 14% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Hera S.p.A right now?
The model range is unusually wide (€2.09 to €6.30). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Hera S.p.A (HER) come from?
Earnings per share at Hera S.p.A grew +11.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +13.5 %, EBIT margin −8.5 %, tax rate +1.6 %, residual (interest, one-offs) +5.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Hera S.p.A
How large is the market capitalisation of Hera S.p.A (HER)?
The market capitalisation of Hera S.p.A is €5.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Hera S.p.A (HER)?
The price-to-sales ratio of Hera S.p.A is 0.43 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Hera S.p.A (HER)?
Earnings per share at Hera S.p.A are €0.3200 (price ÷ EPS = P/E 11.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Hera S.p.A (HER)?
The dividend yield of Hera S.p.A is 4.3% (payout 50.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Hera S.p.A (HER)?
The net margin of Hera S.p.A is 3.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Hera S.p.A (HER)?
The return on equity (ROE) of Hera S.p.A is 12.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Hera S.p.A (HER)?
On an EBIT basis the return on assets of Hera S.p.A is 4.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Hera S.p.A (HER)?
The operating margin of Hera S.p.A is 4.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Hera S.p.A (HER)?
Revenue at Hera S.p.A is growing +21.7% versus a year earlier (3y avg −13.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Hera S.p.A (HER)?
Earnings per share at Hera S.p.A are growing +8.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Hera S.p.A (HER) carry?
The net debt of Hera S.p.A is €4.0B (fiscal year 2025, ≈ 20.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Hera S.p.A in the live analysis
One click puts Hera S.p.A on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 7, 2026