Engie (ENXTPA:ENGI) is making waves in the green energy market, supported by new power purchase agreements with global giants like Apple and AstraZeneca. Recent renewable energy projects in Italy highlight the company’s momentum.

See our latest analysis for Engie.

The momentum behind Engie is translating into the stock’s performance, with a strong year-to-date share price return of 40% and a 1-year total shareholder return of nearly 54%. Big-ticket renewable deals and upbeat earnings guidance have helped sustain this pace. Recent moves suggest optimism about long-term value is building among investors.

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But with Engie’s share price climbing so rapidly, has the market already factored in these ambitions and future earnings growth? Or could there still be a window of opportunity for investors to get in ahead of the curve?

Engie’s widely followed narrative fair value is €21.48, essentially matching the last close of €21.80. The stock’s recent run appears to have priced in much of the expected growth, but the underlying drivers might surprise you.

Strategic expansion in renewables and energy storage, highlighted by nearly 53 GW of installed renewables/BESS capacity and a 118 GW development pipeline diversified across multiple geographies, positions Engie to capture an outsized share of the multi-decade shift to clean energy. This supports sustainable top-line and earnings growth.

Read the complete narrative.

What if this valuation is built on an ambitious transformation story? The numbers behind Engie’s future engine include some bold bets on revenue stability despite earnings headwinds. How do analysts see the next chapter? Click through to explore the keystone forecasts shaping this high-stakes valuation.

Result: Fair Value of €21.48 (ABOUT RIGHT)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, Engie still faces risks, such as regulatory shifts or unfavorable weather, which could challenge today’s optimistic valuations and growth expectations.

Find out about the key risks to this Engie narrative.

Looking through another lens, Engie’s price-to-earnings ratio stands at just 10.7x. This is materially lower than both peers at 19.9x and the industry average at 18.2x. Market expectations appear cautious compared to where similar companies trade and when compared with the fair ratio of 14.1x. Is the market underestimating Engie’s potential, or is there a risk of prices catching up with reality?