Contact Energy Ltd
NZX:CEN
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (18.1), the stock would be worth NZ$10.51 (12% upside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 16.2 | NZ$9.38 |
0%
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| 3-Year Average | 18.1 | NZ$10.51 |
+12%
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| 5-Year Average | 20.8 | NZ$12.06 |
+29%
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| Industry Average | 24.6 | NZ$14.23 |
+52%
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| Country Average | 18.3 | NZ$10.59 |
+13%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
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NZ$12B
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/ |
Jan 2026
NZ$769m
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= |
|
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NZ$12B
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/ |
Jun 2026
NZ$999.1m
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= |
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NZ$12B
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/ |
Jun 2027
NZ$1.1B
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= |
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NZ$12B
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/ |
Jun 2028
NZ$1.1B
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= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| NZ |
|
Contact Energy Ltd
NZX:CEN
|
9.3B NZD | 16.2 | 23.7 | |
| US |
|
Nextera Energy Inc
NYSE:NEE
|
200.5B USD | 19.3 | 29.2 | |
| ES |
|
Iberdrola SA
MAD:IBE
|
128.8B EUR | 10 | 20.6 | |
| IT |
|
Enel SpA
MIL:ENEL
|
99.2B EUR | 7.4 | 23.3 | |
| US |
|
Constellation Energy Corp
NASDAQ:CEG
|
106.1B USD | 20.8 | 42 | |
| US |
|
Southern Co
NYSE:SO
|
103.2B USD | 12.7 | 23.6 | |
| US |
|
Duke Energy Corp
NYSE:DUK
|
99.6B USD | 11.1 | 20.1 | |
| US |
|
American Electric Power Company Inc
NASDAQ:AEP
|
73.1B USD | 13.4 | 20.4 | |
| FR |
|
Electricite de France SA
PAR:EDF
|
46.6B EUR | -5.4 | -2.5 | |
| US |
|
Entergy Corp
NYSE:ETR
|
51.5B USD | 13.8 | 29.4 | |
| US |
|
Xcel Energy Inc
NASDAQ:XEL
|
49.6B USD | 14 | 24.4 |
Market Distribution
| Min | 4.2 |
| 30th Percentile | 14.7 |
| Median | 18.3 |
| 70th Percentile | 28.5 |
| Max | 518.2 |
Other Multiples
Contact Energy Ltd
Glance View
Contact Energy Ltd., a cornerstone in New Zealand's energy sector, has been dynamically navigating the renewable energy landscape since its establishment in 1996. With its roots deeply embedded in generating electricity through geothermal and hydro resources, Contact Energy has remained steadfast in leveraging New Zealand's rich natural assets. Headquartered in Wellington, the company is responsible for a significant portion of the country's electricity supply, catering to residential, commercial, and industrial consumers. The narrative of Contact Energy is not merely about power generation; it's about harnessing nature responsibly, driving the shift towards sustainability while maintaining a balance with market demands. At its core, Contact Energy's business model is a sophisticated blend of electricity generation, trading, and retail. The company operates a suite of power stations across New Zealand, producing electricity that is sold through both spot markets and long-term sale agreements. The trading and hedging strategies employed are crafted to mitigate risks associated with fluctuating energy prices, ensuring stable cash flows and profitability. By offering retail services that include electricity and natural gas, Contact Energy expands its revenue streams while embedding itself more deeply into the fabric of everyday life in New Zealand. It's this integration of generation, trading, and retail that outlines the financial lifeblood of Contact Energy, underscoring its role as a pivotal player in New Zealand's journey towards a sustainable energy future.
