Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for FREE.
Wondering whether Enel at €9.63 is offering fair value or a potential mispricing? This article walks you through what the current market price might be telling you about the stock.
Enel’s share price recently closed at €9.625, with returns of 6.9% year to date, 31.7% over 1 year, 91.2% over 3 years and 60.1% over 5 years. This is alongside recent moves of 3.0% lower over 7 days and 2.3% lower over 30 days.
Recent attention on Enel has focused on its positioning in the Italian utilities sector and how investors are weighing regulated cash flows against changing interest rate expectations. News coverage has also highlighted ongoing discussion around the role of large utilities in grid stability and the transition of power systems, which helps frame the recent share price moves.
On Simply Wall St’s 6 point valuation checklist, Enel currently scores 3 out of 6. The sections that follow compare different valuation approaches, before finishing with a broader way to think about what this score really means for you.
Approach 1: Enel Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model projects a company’s future cash flows and then discounts them back to today’s value, to arrive at an estimate of what the stock might be worth now.
For Enel, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections expressed in €. The latest twelve month free cash flow is about €2.7b. Analyst and extrapolated estimates in the model show projected free cash flow of €6.7b by 2030, with a path of projections between 2026 and 2035 that are discounted back to today using Simply Wall St’s assumptions.
Aggregating these discounted cash flows gives an estimated intrinsic value of €10.67 per share. Compared with the recent share price of about €9.63, the DCF points to an intrinsic discount of roughly 9.8%. This is close to the boundary of what might be called a clear mispricing versus normal market noise for a large utility stock.
Result: ABOUT RIGHT
Enel is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment’s notice. Track the value in your watchlist or portfolio and be alerted on when to act.
ENEL Discounted Cash Flow as at May 2026
Approach 2: Enel Price vs Earnings
For profitable companies, the P/E ratio is a useful shorthand for how much you are paying for each euro of current earnings. It links directly to what investors are willing to pay today for the earnings the company is already generating.
Story Continues
What counts as a “normal” or “fair” P/E depends on how investors view a company’s growth prospects and risk. Higher expected growth or lower perceived risk can justify a higher P/E, while lower growth or higher risk usually lines up with a lower multiple.
Enel currently trades on a P/E of 24.17x. That sits above the Electric Utilities industry average of 15.22x, but below the peer group average of 27.18x. Simply Wall St’s Fair Ratio for Enel is 26.95x, a proprietary estimate of what P/E could be reasonable after accounting for factors such as earnings growth, profit margins, industry, market cap and risk profile.
This Fair Ratio can be more informative than a simple comparison with peers or the industry, because it adjusts for company specific characteristics rather than assuming all utilities deserve similar multiples. With Enel at 24.17x compared with a Fair Ratio of 26.95x, the stock screens as modestly undervalued on this measure.
Result: UNDERVALUED
BIT:ENEL P/E Ratio as at May 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 100 top founder-led companies.
Upgrade Your Decision Making: Choose your Enel Narrative
Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are Simply Wall St’s way for you to turn your view of Enel into a clear story that links what you think about its business, future revenues, earnings and margins to a financial forecast, a fair value and then a simple comparison with today’s price.
On the Community page, you can pick or create a Narrative that fits your perspective. For example, one investor might focus on Enel’s renewables expansion, digital grid investments and balance sheet simplification and lean toward the higher analyst fair value around €12.00. Another might worry more about concentrated European exposure, FX risk and flat demand and sit closer to the lower end around €8.00.
Each Narrative on the platform turns those assumptions into an explicit fair value that you can compare with the current share price to help decide whether you see a potential opportunity or risk. Because these Narratives update when new earnings, news or targets are released, you can see how fresh information is changing the story you believe in.
Do you think there’s more to the story for Enel? Head over to our Community to see what others are saying!
BIT:ENEL 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ENEL.MI.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com