Report
Travis Miller
EUR 147.86 For Business Accounts Only

RWE's Pricing Range for Innogy's Public Offering Supports Our Valuation

We are reaffirming our EUR 18 per share fair value estimate for RWE, along with our no-moat and stable moat trend ratings, after management announced that it expects its Innogy public offering to price between EUR 32 and EUR 36 per Innogy share.

Our fair value estimate implies a value near EUR 35 per share, or EUR 17.7 billion, for Innogy. This results in a negative EUR 6.6 billion net value for RWE’s commodities business on a stand-alone basis, although RWE plans to retain 85%-90% ownership of...
Underlying
RWE AG

RWE is an electricity and gas company. The Conventional Power Generation segment consists of the activities of RWE Power, Essent and RWE npower. The Supply/Distribution Networks Germany segment supplies electricity, gas and heat. The Supply Netherlands/Belgium segment comprises the activities of Essent in the Netherlands. The Supply United Kingdom segment comprises the operations of RWE npower. The Central Eastern and South Eastern European segment contains activities in the Czech Republic, Hungary, Poland, Slovakia, Turkey and Croatia. The Renewables, Upstream Gas & Oil and Trading/Gas Midstream segments include the activities of RWE Innogy, RWE Dea and RWE Supply & Trading, respectively.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Travis Miller

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