Redeia Corporacion S.A. (RED) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Redeia Corporacion S.A. stock €9.17, price €15.71, that is 41.6% below the price, quality 49 out of 100. Rating: strongly overvalued. Calculated from audited financials with 13 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range €11.81 – €17.71 · fair‑value band €7.39 – €10.85 · the €15.71 price screens above the €9.17 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Redeia Corporación, S.A., through with its subsidiaries, engages in the management of the Spanish electricity transport network in Spain and internationally.
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The company operates through three segments: Management and Operation of Domestic Electricity Infrastructure; Management and Operation of International Electricity Infrastructure; and Telecommunications.
The company is involved in electricity transmission; system operation; and management of Spanish electricity transmission grid. It operates through a transmission network of approximately 46,074 kilometers and has 99,071 MVA of transformation capacity.
The company also provides advisory, engineering, and construction services; and telecommunications, financing, reinsurance, line and substation maintenance, radio spectrum, telecommunications networks and satellite communication, technical consultancy, and satellite telecommunications services.
In addition, it operates and maintains electricity transmission networks; manages the construction of energy storage facilities and the water cycle; acquires, holds, manages, and administers equity securities; operates satellite communications system and provides space segment services for the geostationary orbital slots; develops and sells safety devices for personal and industrial use; and sells and leases satellites and spatial capacity, as well as sells and markets satellite capacity.
The company was formerly known as Red Eléctrica Corporación, S.A. and changed its name to Redeia Corporación, S.A. in June 2023. Redeia Corporación, S.A. was incorporated in 1985 and is based in Alcobendas, Spain.
Stock analysis
Redeia Corporacion S.A. (RED) currently trades at €15.71, while our model-based Fair Value estimate is €9.17, 42% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of €12.84 per share, and 2 of the 13 models we run sit above the €15.71 price.
Bear case: the Earnings-Based group reads lowest at €1.81, and 11 of the 13 models stay below the price. Data coverage for this calculation is medium.
Scenario range: €7.39 (bear) to €10.85 (bull), the price of €15.71 sits above 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 49/100 (below-average quality), in the Utilities sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Redeia Corporacion S.A. reported revenue of €1.7B in FY2025 versus €2.0B in FY2021, a compound −4.0%/yr. Reported net income was €506M in FY2025, compounding −7.2%/yr from FY2021.
Key figures
Market cap €8.5B Mid · P/E ratio 16.7 · P/S ratio 4.85 · EPS (TTM) €0.9400 · Dividend yield 5.1% · Net margin 30.0% · Return on equity 9.8% · Return on assets (EBIT) 4.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 68 out of 100 (low confidence).
What moves the price
The share trades at its 52-week high and 15% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Utilities peers we cover trades at −38% fair-value upside, at −42%, RED screens richer than that median.
Fair Value models
Bear€7.39Fair Value €9.17Bull€10.85
Price €15.71 · Downside -41.6%
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 (€0.1189 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.19/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+4.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−6.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.5%
Start year 2020 (pandemic). Over 10 years: −1.5% a year
Revenue growth 23 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.9%
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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.
−0.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year−5.8%
Dividend (yield on the price)5.1%
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.−5.8% vs −2.3%, 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.47% → 44%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Revenue per share shrinking 1.1%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
News mood ⓘNews mood, the average tone of recent news (13 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Very negative
AI conclusion: Operating Spain's high-voltage grid benefits from rising electricity demand, yet negative free cash flow and elevated debt constrain durability under regulatory return caps.
Main risk: The CNMC framework for 2026-2031 with limited inflation indexation, delayed RAB recognition and modest rate increases could squeeze margins on Redeia's regulated transmission investments.
Bull case: Redeia could secure faster permitting or improved regulatory incentives that accelerate its grid investments and support higher volumes from rising electricity demand.
Bear case: Continued regulatory constraints might delay cost recovery and limit the returns needed to finance essential reinforcements of the high-voltage grid.
Redeia runs Spain's high-voltage electricity grid, and demand there rose more than 5 percent in September. That points to heavier use of the transmission network and supports the case for continued investment, yet regulated returns could cap how much extra volume flows through to earnings. Does rising power consumption ultimately ease margin pressure or mainly add to the capital load under existing rules?
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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 - Regulated Electric · 156 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score49 · Above median
Fair Value upside−41.6% · Below median
Profitability
Return on equity (12 months)9.8% · Below median
Return on assets3.3% · Above median
Net margin (12 months)30.0% · Top 25%
Operating margin (12 months)51.5% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)9.2% · Above median
Dividend yield (12 months)5.1% · Top 25%
Balance sheet
Debt / equity1.03× · Above median
Valuation Multiplesvs Utilities - Regulated Electric median · lower = cheaper
P/E (12 months)16.7× · Pricier than median
P/B1.62× · Pricier than median
P/S (12 months)4.85× · Priciest 25%
EV/EBITDA11.8× · Pricier than median
PEG4.53× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 12
FUTURE (revenue growth)46· sector 21
PAST (return on equity)39· sector 39
HEALTH (low debt)49· sector 52
DIVIDEND (yield)100· sector 63
VALUE 0: the price sits above our fair-value range.
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.
Is Redeia Corporacion S.A. (RED) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of €9.17 versus a price of €15.71, about 42% lower (overvalued).
What is the fair value of RED?
Our model-based fair value for Redeia Corporacion S.A. is €9.17 (as of Nov 6, 2026), built from audited fundamentals. The current price: €15.71.
What is the quality score of RED?
Redeia Corporacion S.A. has a Quality Score of 49/100. 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 Redeia Corporacion S.A. (RED)?
Our model-based price target is the fair value of €9.17 (as of Nov 6, 2026) from 13 valuation models. Cautious scenario €7.39, optimistic scenario €10.85. It is a calculation from audited fundamentals, not an analyst target.
What is the Redeia Corporacion S.A. stock forecast for 2026?
Our models put fair value at €9.17, about 42% lower versus a price of €15.71 (overvalued). Cautious scenario €7.39, optimistic scenario €10.85. The calculation is refreshed regularly with new filings.
What is the revenue of Redeia Corporacion S.A. (RED)?
Redeia Corporacion S.A. reported trailing-twelve-month revenue of about €1.8B (latest available figure, as of Nov 6, 2026).
Does Redeia Corporacion S.A. pay a dividend?
Redeia Corporacion S.A. currently shows a dividend yield of 5.09% relative to its recent price (as of Nov 6, 2026).
What is the intrinsic value of Redeia Corporacion S.A. (RED)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Redeia Corporacion S.A. it is €9.17 per share (as of Nov 6, 2026), against a price of €15.71. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Redeia Corporacion S.A. stock overvalued or undervalued in 2026?
As of Nov 6, 2026, RED trades above its calculated fair value: price €15.71, fair value €9.17, a gap of about −42% (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 RED?
No. The price is what the market pays today (€15.71); the fair value is what the company's own numbers justify (€9.17). For Redeia Corporacion S.A. the two are €6.54 per share apart. That gap is exactly why we show both numbers side by side.
How much is Redeia Corporacion S.A. worth?
The market values Redeia Corporacion S.A. at about €8.5B (market capitalisation, as of Nov 6, 2026). Per share that is €15.71; our models calculate a fair value of €9.17 per share.
What do the bullish and bearish scenarios say about RED?
Our models span a range for Redeia Corporacion S.A.: cautious scenario €7.39, base €9.17, optimistic €10.85 per share (as of Nov 6, 2026, price €15.71). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RED?
Redeia Corporacion S.A. trades at a price-to-earnings ratio of 16.7 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of €9.17 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: 15.0. Other multiples: PEG 4.5, P/B 1.6, P/S 4.9, EV/EBITDA 11.8.
What is the PEG ratio of RED?
The PEG ratio of Redeia Corporacion S.A. is 4.53 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Redeia Corporacion S.A. (RED)?
Balance-sheet figures for Redeia Corporacion S.A. (as of Nov 6, 2026): return on equity 9.8%, debt of 1.03 per unit of equity. They feed the Quality Score of 49/100, which measures business quality independently of the share price.
How far is RED from its 52-week high?
Redeia Corporacion S.A. trades at €15.71, at its 52-week high of €15.72 and 15% above the low of €13.66 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of €9.17 is for.
Which stocks are comparable to Redeia Corporacion S.A.?
From the same area (Utilities) we also value NextEra Energy, Inc, The Southern Company, Duke Energy Corporation, American Electric Power Company, 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 Redeia Corporacion S.A. stock attractive at the current price?
The data as of Nov 6, 2026: price €15.71, calculated fair value €9.17 (−42%), Quality Score 49/100, from 13 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 RED calculated?
We run Redeia Corporacion S.A. through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of €9.17, 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 15.5% above its aggregate fair value. Redeia Corporacion S.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 Redeia Corporacion S.A. (RED)?
The closing price on Nov 5, 2026 was €15.71. Our model-based fair value is €9.17, about 42% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Redeia Corporacion S.A. right now?
The price sits above even our optimistic bull case (€10.85). The favourable scenario is already priced in. Weak quality (49/100) and above fair value at the same time, the margin of safety is missing on both counts.
Where does the earnings growth of Redeia Corporacion S.A. (RED) come from?
Earnings per share at Redeia Corporacion S.A. grew −2.5 % a year from 2014 to 2025. Broken into its drivers: revenue per share −0.8 %, EBIT margin −1.1 %, tax rate −0.3 %, residual (interest, one-offs) −0.3 %. 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 Redeia Corporacion S.A.
How large is the market capitalisation of Redeia Corporacion S.A. (RED)?
The market capitalisation of Redeia Corporacion S.A. is €8.5B. 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 Redeia Corporacion S.A. (RED)?
The price-to-sales ratio of Redeia Corporacion S.A. is 4.85 (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 Redeia Corporacion S.A. (RED)?
Earnings per share at Redeia Corporacion S.A. are €0.9400 (price ÷ EPS = P/E 16.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Redeia Corporacion S.A. (RED)?
The dividend yield of Redeia Corporacion S.A. is 5.1% (payout 85.1%). 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 Redeia Corporacion S.A. (RED)?
The net margin of Redeia Corporacion S.A. is 30.0% (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 Redeia Corporacion S.A. (RED)?
The return on equity (ROE) of Redeia Corporacion S.A. is 9.8% (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 Redeia Corporacion S.A. (RED)?
On an EBIT basis the return on assets of Redeia Corporacion S.A. is 4.7% (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 Redeia Corporacion S.A. (RED)?
The operating margin of Redeia Corporacion S.A. is 51.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Redeia Corporacion S.A. (RED)?
Revenue at Redeia Corporacion S.A. is growing +9.2% versus a year earlier (3y avg −6.3%). 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 Redeia Corporacion S.A. (RED)?
Earnings per share at Redeia Corporacion S.A. are growing −6.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Redeia Corporacion S.A. (RED) generate?
The free cash flow of Redeia Corporacion S.A. is −€394M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Redeia Corporacion S.A. (RED) carry?
The net debt of Redeia Corporacion S.A. is €6.2B (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Nov 6, 2026