ERG Fair Value
ER
The fair market value of ERG.MI stock is 40.34 EUR. Relative to the market price of 19.46 EUR ERG is undervalued by 107.3%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
ERG Valuation
Current ERG.MI share ticker price is 19.46 EUR.
The fair value level of 40.34 EUR can be considered as an effective entry point for long-term investors to start investing in ERG.MI stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 107% lower its fair value
Current price is 15% higher its minimum value
Current price is 324% lower its maximum value
Market price:
ERG.MI stock is undervalued
It means the current price may concern as a Moderate Risk Entry Point
ERG SpA Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
54.27
2
Median P/E over 5 years
26.53
3
Minimum P/E over 5 years
10.86
4
Earning per share (last 12 months)
1.52 EUR
Maximum value
1
x
4
=
82.54 EUR
Fair value
2
x
4
=
40.34 EUR
Minimum value
3
x
4
=
16.51 EUR
ERG SpA price metrics
1.9
Annual return (geometric mean)
30.79
Risk (standard deviation) of returns
β
0.38
Beta (volatility compared to market)