RWE AG (RWE) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of RWE AG stock €43.47, price €57.06, that is 23.8% below the price, quality 33 out of 100. Rating: overvalued. Calculated from audited financials with 14 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 5, 2026.
How to read this chart
60‑month range €26.50 – €60.74 · fair‑value band €37.16 – €51.84 · the €57.06 price screens above the €43.47 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 5, 2026.
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RWE generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Flexible Generation; Supply & Trading; and Phaseout Technologies.
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The company generates wind, hydro, solar, gas, lignite, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities, as well as lignite mining and refining.
The company serves commercial, industrial, and municipal customers. RWE was founded in 1898 and is headquartered in Essen, Germany.
Stock analysis
RWE AG (RWE) currently trades at €57.06, while our model-based Fair Value estimate is €43.47, 24% 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 €55.01 per share, and 1 of the 14 models we run sit above the €57.06 price.
Bear case: the Earnings-Based group reads lowest at €7.43, and 13 of the 14 models stay below the price. Data coverage for this calculation is medium.
Scenario range: €37.16 (bear) to €51.84 (bull), the price of €57.06 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 33/100 (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.
RWE AG reported revenue of €17.6B in FY2025 versus €24.5B in FY2021, a compound −7.9%/yr. Reported net income was €3.1B in FY2025, compounding +44.4%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.
Key figures
Market cap €44.5B Large · P/E ratio 12.7 · P/S ratio 2.89 · EPS (TTM) €4.51 · Dividend yield 2.1% · Net margin 21.0% · Return on equity 8.6% · Return on assets (EBIT) 1.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 43 out of 100 (medium confidence).
What moves the price
The share trades about 6% below its 52-week high and 37% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Utilities peers we cover trades at −48% fair-value upside, at −24%, RWE screens cheaper than that median.
Fair Value models
Bear€37.16Fair Value €43.47Bull€51.84
Price €57.06 · Downside -23.8%
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 (€2.81 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.30/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−27.2%
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.
−22.8%
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.
+5.2%
Start year 2020 (pandemic). Over 10 years: −9.2% 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.
−7.1%
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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.
+28.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+25.9%
Dividend (yield on the price)2.1%
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.25.9% vs 3.9%, picking up
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.−12% → 5%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Revenue per share shrinking 8.1%/yr over ~10Y (margin trend unclear) ⓘ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 (98 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.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Scale offers a modest organizational edge in this regulated utility, yet negative free cash flow and reliance on one-off gains leave earnings quality weak and pricing power constrained.
Main risk: Changes to tax credits, subsidies, grid fees or approval processes in the US and key European markets could reduce the viability of new renewable investments or impair existing generation assets and thereby pressure margins.
Bull case: By locking in more long-term contracts and forming strategic partnerships with regulators and financial investors, RWE could secure stable returns on its flexible and renewable assets even amid policy shifts.
Bear case: If regulatory frameworks deteriorate further, RWE might have to cancel or impair projects, leading to persistently lower profitability and greater reliance on volatile merchant power markets.
RWE keeps acquiring shares for its German employee programme, buying 165,000 in recent weeks alone. The move recycles capital inside the utility at a time when our models see the stock as overvalued. Will steady buybacks support earnings stability more than new offshore projects, or will they simply mask slower organic expansion?
Price, fair value, quality and upside side by side.
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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 - Diversified · 49 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score33 · Bottom 25%
Fair Value upside−23.8% · Above median
Profitability
Return on equity (12 months)8.6% · Below median
Return on assets2.9% · Above median
Net margin (12 months)21.0% · Top 25%
Operating margin (12 months)4.7% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)−9.1% · Bottom 25%
Dividend yield (12 months)2.1% · Bottom 25%
Balance sheet
Debt / equity0.34× · Lowest 25%
Valuation Multiplesvs Utilities - Diversified median · lower = cheaper
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). "RWE AG Fair Value". https://www.fairvalue-calculator.com/stock/RWE
Frequently asked questions
Is RWE AG (RWE) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of €43.47 versus a price of €57.06, about 24% lower (overvalued).
What is the fair value of RWE?
Our model-based fair value for RWE AG is €43.47 (as of Nov 5, 2026), built from audited fundamentals. The current price: €57.06.
What is the quality score of RWE?
RWE AG has a Quality Score of 33/100. 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 RWE AG (RWE)?
Our model-based price target is the fair value of €43.47 (as of Nov 5, 2026) from 14 valuation models. Cautious scenario €37.16, optimistic scenario €51.84. It is a calculation from audited fundamentals, not an analyst target.
What is the RWE AG stock forecast for 2026?
Our models put fair value at €43.47, about 24% lower versus a price of €57.06 (overvalued). Cautious scenario €37.16, optimistic scenario €51.84. The calculation is refreshed regularly with new filings.
What is the revenue of RWE AG (RWE)?
RWE AG reported trailing-twelve-month revenue of about €15.4B (latest available figure, as of Nov 5, 2026).
Does RWE AG pay a dividend?
RWE AG currently shows a dividend yield of 2.10% relative to its recent price (as of Nov 5, 2026).
What is the intrinsic value of RWE AG (RWE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For RWE AG it is €43.47 per share (as of Nov 5, 2026), against a price of €57.06. It is the blended result of 14 valuation models (cash flow, earnings, asset, dividend).
Is RWE AG stock overvalued or undervalued in 2026?
As of Nov 5, 2026, RWE trades above its calculated fair value: price €57.06, fair value €43.47, a gap of about −24% (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 RWE?
No. The price is what the market pays today (€57.06); the fair value is what the company's own numbers justify (€43.47). For RWE AG the two are €13.59 per share apart. That gap is exactly why we show both numbers side by side.
How much is RWE AG worth?
The market values RWE AG at about €44.5B (market capitalisation, as of Nov 5, 2026). Per share that is €57.06; our models calculate a fair value of €43.47 per share.
What do the bullish and bearish scenarios say about RWE?
Our models span a range for RWE AG: cautious scenario €37.16, base €43.47, optimistic €51.84 per share (as of Nov 5, 2026, price €57.06). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RWE?
RWE AG trades at a price-to-earnings ratio of 12.7 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of €43.47 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 23.0 (reported for FY2025: 13.6). Median P/E at fiscal year-end, 8 fiscal years (2017 to 2025), reported earnings, FY2025 ex one-offs: 19.6. Other multiples: PEG 36.3, P/B 1.3, P/S 2.9, EV/EBITDA 20.3.
What is the PEG ratio of RWE?
The PEG ratio of RWE AG is 36.30 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of RWE AG (RWE)?
Balance-sheet figures for RWE AG (as of Nov 5, 2026): return on equity 8.6%, debt of 0.34 per unit of equity. They feed the Quality Score of 33/100, which measures business quality independently of the share price.
How far is RWE from its 52-week high?
RWE AG trades at €57.06, about 6% below its 52-week high of €60.74 and 37% above the low of €41.74 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of €43.47 is for.
Which stocks are comparable to RWE AG?
From the same area (Utilities) we also value Iberdrola, S.A, Enel SpA, Engie SA, Sempra, 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 RWE AG stock attractive at the current price?
The data as of Nov 5, 2026: price €57.06, calculated fair value €43.47 (−24%), Quality Score 33/100, from 14 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 RWE calculated?
We run RWE AG through 14 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 €43.47, 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. RWE AG 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 RWE AG (RWE)?
The closing price on Nov 5, 2026 was €57.06. Our model-based fair value is €43.47, about 24% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with RWE AG right now?
The price sits above even our optimistic bull case (€51.84). The favourable scenario is already priced in. Weak quality (33/100) and above fair value at the same time, the margin of safety is missing on both counts.
Key figures of RWE AG
How large is the market capitalisation of RWE AG (RWE)?
The market capitalisation of RWE AG is €44.5B. 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 RWE AG (RWE)?
The price-to-sales ratio of RWE AG is 2.89 (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 RWE AG (RWE)?
Earnings per share at RWE AG are €4.51 (price ÷ EPS = P/E 12.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of RWE AG (RWE)?
The dividend yield of RWE AG is 2.1% (payout 45.2%, on adjusted earnings, reported 26.6%). 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 RWE AG (RWE)?
The net margin of RWE AG is 21.0% (last twelve months), excl. one-off gain FY2025 10.5%. 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 RWE AG (RWE)?
The return on equity (ROE) of RWE AG is 8.6% (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 RWE AG (RWE)?
On an EBIT basis the return on assets of RWE AG is 1.7% (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 RWE AG (RWE)?
The operating margin of RWE AG is 4.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at RWE AG (RWE)?
Revenue at RWE AG is growing −9.1% versus a year earlier (3y avg −22.8%). 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 RWE AG (RWE)?
Earnings per share at RWE AG are growing +137% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does RWE AG (RWE) generate?
The free cash flow of RWE AG is −€5.1B (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 RWE AG (RWE) carry?
The net debt of RWE AG is €9.3B (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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Some data
Nov 5, 2026