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A2A S.p.A (A2A) Fair Value & Analysis

Utilities · IT · Market cap €7.1B

AS A2A S.p.A A2A · MI
Price€2.33
Fair Value€3.13
Upside+34.6%
Quality49/100
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Mixed Growth
Thin margins · 4.9% net margin
Moderate debt · generates free cash flow
Ranks above peers (10/15)
Narrow moat 40/100
Evidence: High Range €1.78 – €5.39 Share as image

Fair value as of: Jul 12, 2026

From 22 valuation models · updated 29 days ago

Share price −0.2% over the past month.

Below-average quality, screening 35% undervalued on our models.

What matters now

  • The model range is unusually wide (€1.78 to €5.39). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

€2.60 €0.7828 Fair Value €3.13 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range €0.7828 – €2.60 · fair‑value band €1.78 – €5.39 · the €2.33 price screens below the €3.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

A2A S.p.A (A2A) currently trades at €2.33, while our model-based Fair Value estimate is €3.13, implying the stock looks roughly 34.6% undervalued today. The Quality Score stands at 49/100 (below-average quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, A2A S.p.A generated revenue of €14.6B at a net margin of 4.9%. Revenue grew 14.7% year over year. It earns a return on equity of 11.5%. Net debt stands at €5.2B. Fundamentals as of Jul 12, 2026

Our scenario range runs from €1.78 (bear case) to €5.39 (bull case); at €2.33, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 18% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -48% fair-value upside, at 35%, A2A screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income €1.76 €2.08 €4.05 76
ROIC Compounder €1.62 €2.26 €3.29 72
Gordon GGM €0.8500 €1.69 €2.56 70
All 22 models by family
DCF Models
5Y Revenue Exit €0.9700 €3.07 €5.87 39
5Y EBITDA Exit €1.80 €4.67 €8.16 41
5Y P/E Exit €0.6100 €2.38 €4.31 38
10Y Revenue Exit €0.1200 €1.83 €4.34 36
10Y EBITDA Exit €0.7500 €2.94 €6.11 37
10Y P/E Exit €1.35 €3.15 35
Earnings-Based
Graham-Dodd €1.63 €5.86 €7.90 54
Lynch FV €1.39 €1.98 €2.57 50
PEG = 1.0 €1.39 €1.98 €2.57 46
EPV €1.62 €2.10 €2.51 59
Dividend Discount
Gordon GGM €0.8500 €1.69 €2.56 70
DDM Multi-Stage €0.8500 €1.46 €1.78 61
Multiples
P/E Multiple €3.23 €4.31 €5.39 63
P/S Multiple €3.05 €4.07 €5.09 58
P/B Multiple €2.55 €3.40 €4.25 55
EV/EBIT €3.05 €4.53 €6.01 53
EV/EBITDA €3.89 €5.65 €7.41 54
EV/Revenue €2.20 €3.74 €5.28 43
Asset-Based
NCAV (Graham) €0.9500 €1.27 €1.89 50
Economic Profit
Residual Income €1.76 €2.08 €4.05 76
ROIC Compounder €1.62 €2.26 €3.29 72
Growth Earnings
Growth-Adj P/E €2.40 €3.43 €4.46 68

Widest divergence: Multiples (€4.07) versus Asset-Based (€1.27). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) €14.6B
Revenue growth (YoY) +14.7%
Net margin 4.9%
Return on equity 11.5%
Free cash flow €95.0M FY2025
P/E ratio 9.5
More key figures
Operating margin 8.2%
EPS (TTM) €0.2400
EPS growth (YoY) +12.1%
Net debt €5.2B FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 47 · Market factors (momentum, volatility) 57

Profitability 38
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 52
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. It generates electricity through hydroelectric, thermoelectric, photovoltaic, and wind plants; and sells and distributes gas.

Full company description

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. It generates electricity through hydroelectric, thermoelectric, photovoltaic, and wind plants; and sells and distributes gas. The company also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, it offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, the company is involved in the management of public lighting systems and street lights, and water purification and sewer activities, as well as offers garbage collection, street sweeping, video surveillance, energy efficiency, and electric mobility services. A2A S.p.A. is headquartered in Milan, Italy.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

A2A S.p.A reported revenue of €14.1B in FY2025 versus €11.4B in FY2021, a compound +5.5%/yr. Reported net income was €750M in FY2025, compounding +10.4%/yr from FY2021.

Growth Quality 62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€14.1B
Latest YoY
+9.4%
Avg. growth/yr (3Y)
−15.1%
Avg. growth/yr (5Y)
+16.1%
Avg. growth/yr (20Y)
+8.0%
Revenue +5.5%/yr
FY21 €11.4B
FY22 €22.9B
FY23 €14.5B
FY24 €12.9B
FY25 €14.1B
Net income +10.4%/yr
FY21 €504M
FY22 €401M
FY23 €659M
FY24 €864M
FY25 €750M

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Cite: Fair Value Calculator (2026). "A2A S.p.A Fair Value". https://www.fairvalue-calculator.com/stock/A2A

Peer Group

Utilities - Diversified · 51 stocks

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.

Quality Score 49 · Above median
Fair Value upside +35% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 3% · Above median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 8% · Below median
Revenue growth 15% · Top 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 1.05× · Higher than median

Valuation Multiples vs Utilities - Diversified median · lower = cheaper

P/E (TTM) 9.5× · Cheaper than 75% of peers
P/B 1.39× · Cheaper than median
P/S (TTM) 0.56× · Cheaper than 75% of peers
P/FCF 86.6× · Pricier than 75% of peers
EV/EBITDA 5.9× · Cheaper than 75% of peers
PEG 0.84× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 79 · sector 14
FUTURE 74 · sector 0
PAST 46 · sector 33
HEALTH 47 · sector 49
DIVIDEND 0 · sector 80

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Diversified stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Iberdrola, S.A IBE €21.25 €9.34 -56%
Enel SpA ENEL €10.28 €5.83 -43%
Engie SA 1ENGI €26.59 €17.39 -35%
Sempra SRE $93.15 $47.77 -49%
E.ON SE EOAN €19.34 €11.71 -39%
RWE Aktiengesellschaft generates and 1RWE €56.52 €29.64 -48%
ACWA Power Company 2082 198.20 SAR 25.38 SAR -87%
Brookfield Infrastructure Partners L.P. BIPUN C$55.05 C$17.66 -68%
EnBW Energie Baden-Württemberg AG EBK €69.00 €21.11 -69%
EDP, S.A EDP €4.41 €3.81 -14%

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Frequently asked questions

Is A2A S.p.A (A2A) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of €3.13 versus a price of €2.33, about +35% (undervalued).
What is the fair value of A2A?
Our model-based fair value for A2A S.p.A is €3.13 (as of Jul 12, 2026), built from audited fundamentals. The current price is €2.33.
What is the quality score of A2A?
A2A S.p.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 revenue of A2A S.p.A (A2A)?
A2A S.p.A reported trailing-twelve-month revenue of about €14.6B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of A2A?
The net profit margin of A2A S.p.A is about 4.9%, meaning it keeps roughly 4.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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