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Redeia Corporación, S.A (RED) Fair Value & Analysis

Utilities · ES · Market cap €8.4B

RC Redeia Corporación, S.A RED · MC
Price€15.45
Fair Value€10.74
Upside-30.5%
Quality54/100
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Weak Growth
Highly profitable · 28.9% net margin
Moderate debt · negative free cash flow
5.20% dividend yield
Mixed vs. peers (7/14)
Wide moat 67/100
Evidence: Medium Range €5.76 – €16.30 Share as image

Fair value as of: Jul 19, 2026

From 14 valuation models · updated 19 days ago

Fair value updated Jul 19, 2026, revised from €10.72 to €10.74 (+0.2%) since Jun 24, 2026. Share price +0.7% over the past month.

A solid business, but screening 30% overvalued on our models.

What matters now

  • The model range is unusually wide (€5.76 to €16.30). 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.
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Price vs Fair Value (5 years)

€17.71 €11.81 Fair Value €10.74 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range €11.81 – €17.71 · fair‑value band €5.76 – €16.30 · the €15.45 price screens above the €10.74 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Redeia Corporación, S.A (RED) currently trades at €15.45, while our model-based Fair Value estimate is €10.74, implying the stock looks roughly 30.5% overvalued today. We read business quality at 54/100 (solid quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Redeia Corporación, S.A 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 Jul 19, 2026

Our scenario range runs from €5.76 (bear case) to €16.30 (bull case); at €15.45, 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 13% below its 52-week high and 9% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -27% fair-value upside, at -30%, RED screens richer 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 €8.41 €9.22 €11.72 76
ROIC Compounder €0.5000 €2.00 €3.29 72
Gordon GGM €7.49 €9.27 €11.08 70
All 14 models by family
Earnings-Based
Graham-Dodd €6.37 €10.78 €13.15 54
EPV €0.5000 €2.00 €3.29 59
Dividend Discount
Gordon GGM €7.49 €9.27 €11.08 70
DDM Multi-Stage €7.49 €9.92 €12.81 61
Multiples
P/E Multiple €14.04 €18.72 €23.41 63
P/S Multiple €5.76 €7.68 €9.60 58
P/B Multiple €11.94 €15.92 €19.90 55
EV/EBIT €9.23 €15.30 €21.37 53
EV/EBITDA €12.73 €19.96 €27.20 54
EV/Revenue €1.02 43
Asset-Based
NCAV (Graham) €4.86 €6.51 €9.72 50
Economic Profit
Residual Income €8.41 €9.22 €11.72 76
ROIC Compounder €0.5000 €2.00 €3.29 72
Growth Earnings
Growth-Adj P/E €9.94 €14.19 €18.45 68

Widest divergence: Multiples (€15.92) versus Earnings-Based (€2.00). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) €1.8B
Revenue growth (YoY) +6.9%
Net margin 28.9%
Return on equity 9.8%
Free cash flow −€394M FY2025
P/E ratio 15.7
More key figures
Operating margin 43.0%
EPS (TTM) €0.9400
Dividend yield 5.4%
EPS growth (YoY) -4.0%
Net debt €6.2B FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 45 · Market factors (momentum, volatility) 61

Profitability 38
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 27
Balance sheet, leverage, solvency risk
Investment 59
Disciplined investing over empire-building
Low Volatility 98
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 43
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

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

Redeia Corporación, 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.

Growth Quality 19/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€1.7B
Latest YoY
+4.1%
Avg. growth/yr (3Y)
−6.3%
Avg. growth/yr (5Y)
−3.5%
Avg. growth/yr (23Y)
+3.9%
Revenue −4.0%/yr
FY21 €2.0B
FY22 €2.0B
FY23 €2.1B
FY24 €1.6B
FY25 €1.7B
Net income −7.2%/yr
FY21 €681M
FY22 €665M
FY23 €690M
FY24 €368M
FY25 €506M

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

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Cite: Fair Value Calculator (2026). "Redeia Corporación, S.A Fair Value". https://www.fairvalue-calculator.com/stock/RED

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Utilities - Regulated Electric · 155 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 54 · Above median
Fair Value upside −31% · Below 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) 5.2% · Top 25%
Debt / equity 1.03× · Higher than median

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

P/E (TTM) 16.6× · Cheaper than median
P/B 1.85× · Pricier than median
P/S (TTM) 5.52× · Pricier than 75% of peers
EV/EBITDA 13.3× · Pricier than 75% of peers
PEG 4.81× · Pricier 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 0 · sector 9
FUTURE 35 · sector 32
PAST 39 · sector 39
HEALTH 49 · sector 53
DIVIDEND 100 · sector 56

VALUE 0: the price sits above our fair-value range.

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 - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
NextEra Energy, Inc NEE $88.80 $32.94 -63%
The Southern Company SO $95.61 $61.06 -36%
Duke Energy Corporation DUK $126.11 $97.11 -23%
National Grid plc NGG 61,175 ARS 44,377 ARS -27%
American Electric Power Company AEP $132.50 $79.33 -40%
Dominion Energy, Inc D $70.08 $46.92 -33%
NTPC Limited NTPC ₹341.85 ₹377.16 +10%
CEZ, a. s. CEZ 232.40 PLN 159.33 PLN -31%
Power Grid Corporation POWERGRID ₹283.55 ₹252.77 -11%
China National Nuclear Power Co 601985 ¥8.91 ¥7.69 -14%

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Frequently asked questions

Is Redeia Corporación, S.A (RED) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of €10.74 versus a price of €15.45, about −30% (overvalued).
What is the fair value of RED?
Our model-based fair value for Redeia Corporación, S.A is €10.74 (as of Jul 19, 2026), built from audited fundamentals. The current price is €15.45.
What is the quality score of RED?
Redeia Corporación, S.A has a Quality Score of 54/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Redeia Corporación, S.A (RED)?
Redeia Corporación, S.A reported trailing-twelve-month revenue of about €1.8B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of RED?
The net profit margin of Redeia Corporación, S.A is about 28.9%, meaning it keeps roughly 28.9% of revenue as net income. Based on the latest reported figures.
Does Redeia Corporación, S.A pay a dividend?
Redeia Corporación, S.A currently shows a dividend yield of about 5.38% relative to its recent price (as of Jul 19, 2026).

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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