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Red Electrica Corporacion SA ADR (RDEIY) Fair Value & Analysis

Utilities · US · Market cap $9.4B · ISIN US7565681019

What is Red Electrica Corporacion SA ADR really worth?

RE Red Electrica Corporacion SA ADR logo Red Electrica Corporacion SA ADR RDEIY · US
Price$8.65
Fair Value$6.63
Upside−23.4%
Quality48/100

Below-average quality, and trading another 30% above our fair value of $6.63.

As of Sep 3, 2026, the fair value of Red Electrica Corporacion SA ADR is $6.63 per share against a price of $8.65, so the fair value sits 23% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Highly profitable · 28.9% net margin
Wide moat 66/100

Risks

!Weak Growth (revenue 5y −4.3 %/yr)
!Moderate debt · negative free cash flow
!Mixed vs. peers (8/14)
!Evidence only medium, so the estimate is less certain
!Weak on valuation: 2 out of 100

For context

·9.25% dividend yield
Evidence: Medium Range $3.53 – $8.72

Fair value as of: Sep 3, 2026

From 12 valuation models · updated 3 days ago

Fair value updated Sep 3, 2026, revised from $6.69 to $6.63 (−0.9%) since Aug 27, 2026. Share price −2.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($3.53 to $8.72) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$10.79 $5.90 Fair Value $6.63 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range $5.90 – $10.79 · fair‑value band $3.53 – $8.72 · the $8.65 price screens above the $6.63 fair value. Dashed = 300-day average. As of Sep 3, 2026.

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Analysis

Red Electrica Corporacion SA ADR (RDEIY) currently trades at $8.65, while our model-based Fair Value estimate is $6.63, implying the stock looks roughly 30.5% overvalued today. The Quality Score stands at 48/100 (below-average quality), in the Utilities sector. Bull case: the Multiples group reads highest at a median of $6.20 per share, and 0 of the 11 models we run sit above the $8.65 price. Bear case: the Earnings-Based group reads lowest at $0.7800, and 11 of the 11 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Red Electrica Corporacion SA ADR generated revenue of $1.8B at a net margin of 28.9%. Revenue grew 6.9% year over year. It earns a return on equity of 9.8%. Net debt stands at $6.2B. Fundamentals as of Sep 3, 2026

Our scenario range runs from $3.53 (bear case) to $8.72 (bull case); at $8.65, 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 22% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −37% fair-value upside, at −23%, RDEIY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
Residual Income best evidence $4.12 $4.49 $5.89 76
Graham-Dodd $3.06 $4.41 $5.19 67
Growth-Adj P/E $4.31 $6.16 $8.00 67
All 12 models by family
Earnings-Based
Graham-Dodd $3.06 $4.41 $5.19 67
EPV $0.0600 $0.7800 $1.40 64
Multiples
P/E Multiple $6.07 $8.09 $10.11 63
P/S Multiple $2.76 $3.69 $4.61 58
P/B Multiple $5.73 $7.64 $9.55 55
EV/EBIT $2.80 $5.22 $7.65 63
EV/EBITDA $3.53 $6.20 $8.87 65
EV/Revenue $0.3100 50
Asset-Based
NCAV (Graham) $2.43 $3.25 $4.85 54
Economic Profit
Residual Income best evidence $4.12 $4.49 $5.89 76
ROIC Compounder $0.0600 $0.7800 $1.40 65
Growth Earnings
Growth-Adj P/E $4.31 $6.16 $8.00 67

Widest divergence: Multiples ($6.20) versus Earnings-Based ($0.7800). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 15.7
P/S ratio 4.79 P/E × margin
EPS (TTM) $0.5500 price ÷ EPS = P/E 15.7
Dividend yield 9.2% payout 145%
Net margin 30.5% FY2025
Return on equity 9.8% TTM
More key figures
Profitability
Return on assets (EBIT) 6.0% avg 5y
Operating margin 43.0% TTM
Growth
Revenue (TTM) $1.8B TTM
Revenue growth (YoY) +6.9% 3y avg −7.5%
EPS growth (YoY) −4.0%
Balance sheet & cash flow
Free cash flow −$394M FY2025
Net debt $6.2B FY2025

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 44 · Market factors (momentum, volatility) 51

Profitability 38
Margins and returns on capital today
Quality Growth 25
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 27
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 21
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Redeia Corporación, S.A., through with its subsidiaries, engages in the management of the Spanish electricity transport network in Spain and internationally.

Full company description

Redeia Corporación, S.A., through with its subsidiaries, engages in the management of the Spanish electricity transport network in Spain and internationally. 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.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Red Electrica Corporacion SA ADR reported revenue of €1.6B in FY2025 versus €2.0B in FY2021, a compound −5.0%/yr. Reported net income was €486M in FY2025, compounding −8.1%/yr from FY2021.

Growth Quality 19/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$1.6B
Latest YoY
+0.0%
Avg. revenue growth/yr (3Y) 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.
−7.5%
Avg. revenue growth/yr (5Y) 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.
−4.3%
Avg. revenue growth/yr (23Y) 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.
+3.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+2.6% · in USD
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−6.6%
Dividend yield9.2%
Trend 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.5Y −6.6% vs 10Y −2.7%, flattening
Operating margin (EBIT) 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.46.8% (2020) → 43.9% (2025) · falling
Worst earnings drop47% (2024) · in USD
⚠ Revenue per share shrinking 1.4%/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.
Revenue −5.0%/yr
FY21 €2.0B
FY22 €2.0B
FY23 €2.1B
FY24 €1.6B
FY25 €1.6B
Net income −8.1%/yr
FY21 €681M
FY22 €665M
FY23 €690M
FY24 €368M
FY25 €486M
Character of growth · EPS growth decomposed (2014-2025) −2.6 % p.a.
Revenue per share −0.8 %

of which total revenue −0.8 % · buybacks/dilution +0.0 %

EBIT margin −1.2 %
Tax rate −0.3 %
Residual (interest, one-offs) −0.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

RDEIY screens 30% overvalued. Compare with NextEra Energy, Inc →

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Cite: Fair Value Calculator (2026). "Red Electrica Corporacion SA ADR Fair Value". https://www.fairvalue-calculator.com/stock/RDEIY

Peer Group

Utilities - Regulated Electric · 153 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 48 · Above median
Fair Value upside −23% · Above median
Return on equity (TTM) 10% · Above median
Return on assets 3% · Below median
Net margin (TTM) 29% · Top 25%
Operating margin (TTM) 43% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 9.2% · Top 25%
Debt / equity 1.03× · Higher than median

Valuation Multiples vs Utilities - Regulated Electric median · lower = cheaper

P/E (TTM) 15.7× · Cheaper than median
P/B 1.80× · Pricier than median
P/S (TTM) 5.36× · Pricier than 75% of peers
EV/EBITDA 13.0× · Pricier than 75% of peers
PEG 4.64× · Pricier than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE2 · sector 0
FUTURE35 · sector 32
PAST39 · sector 39
HEALTH49 · sector 52
DIVIDEND100 · sector 66

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

Similar stocks

10 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).

Stock Price Fair Value vs Fair Value
NextEra Energy, Inc NEE $83.47 $32.94 −61%
The Southern Company SO $88.25 $58.81 −33%
Duke Energy Corporation DUK $120.25 $74.89 −38%
National Grid plc NGG $80.68 $63.94 −21%
American Electric Power Company AEP $122.96 $77.23 −37%
Dominion Energy, Inc D $66.01 $46.34 −30%
Entergy Corporation ETR $105.75 $52.92 −50%
Xcel Energy Inc XEL $76.34 $44.61 −42%
Exelon Corporation EXC $43.64 $37.60 −14%
Endesa, S.A ELE €42.30 €25.72 −39%

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Frequently asked questions

Is Red Electrica Corporacion SA ADR (RDEIY) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of $6.63 versus a price of $8.65, about −23% upside (overvalued).
What is the fair value of RDEIY?
Our model-based fair value for Red Electrica Corporacion SA ADR is $6.63 (as of Sep 3, 2026), built from audited fundamentals. The current price: $8.65.
What is the quality score of RDEIY?
Red Electrica Corporacion SA ADR has a Quality Score of 48/100. 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 Red Electrica Corporacion SA ADR (RDEIY)?
Our model-based price target is the fair value of $6.63 (as of Sep 3, 2026) from 12 valuation models. Cautious scenario $3.53, optimistic scenario $8.72. It is a calculation from audited fundamentals, not an analyst target.
What is the Red Electrica Corporacion SA ADR stock forecast for 2026?
Our models put fair value at $6.63, about −23% upside versus a price of $8.65 (overvalued). Cautious scenario $3.53, optimistic scenario $8.72. The calculation is refreshed regularly with new filings.
What is the revenue of Red Electrica Corporacion SA ADR (RDEIY)?
Red Electrica Corporacion SA ADR reported trailing-twelve-month revenue of about $1.8B (latest available figure, as of Sep 3, 2026).
What is the net profit margin of RDEIY?
The net profit margin of Red Electrica Corporacion SA ADR is about 28.9%, meaning it keeps roughly 28.9% of revenue as net income. Based on the latest reported figures.
Does Red Electrica Corporacion SA ADR pay a dividend?
Red Electrica Corporacion SA ADR currently shows a dividend yield of about 9.25% relative to its recent price (as of Sep 3, 2026).
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