Current Price
$55.21
Intrinsic Value
$57.35
+3.7% margin of safety
What Is Eni S.p.A.'s Intrinsic Value?
As of 2026-07-30, the base-case DCF model estimates the intrinsic value of Eni S.p.A. (E) at $57.35 per share, compared with a market price of $55.21, a margin of safety of +3.7%. The base case assumes 2.8% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $50.19 to $65.81. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Eni S.p.A. (E) Undervalued?
At $55.21, E trades about 3.7% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Integrated Energy Value Chain
Eni's upstream, midstream, and downstream operations create a synergistic advantage. This integration allows for cost efficiencies and greater control over production and distribution.
↑Strategic Geographic Footprint
Significant presence in resource-rich regions like North Africa and the Mediterranean provides access to stable energy supplies. This geographic diversification mitigates risks associated with single-market dependence.
↑Diversification into New Energies
Investments in fusion energy and lithium projects signal a forward-looking strategy. This diversification into emerging clean energy technologies positions Eni for future market shifts.
INVESTMENT RISKS
↓Geopolitical Instability in Operating Regions
Operations in regions like Libya are subject to political volatility, which can disrupt production, impact infrastructure, and affect export capabilities.
↓Commodity Price Volatility
As an integrated oil and gas company, Eni's profitability is highly sensitive to fluctuations in global oil and gas prices.
↓Execution Risk in New Ventures
The success of new ventures, such as the fusion energy JV and lithium projects, depends on effective execution and technological advancements, which carry inherent risks.
Base case
E base case valuation
Intrinsic Value
$57.35
Margin of safety
+3.7%
Expected annual return
+0.8%
Base case assumptions: 2.8% annual growth, 10.0% discount rate, 18x exit multiple, 5 year projection. Data as of 2026-07-30.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the E valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Eni S.p.A. respond.
Open DCF Calculator for ECompany Overview
Eni S.p.A. is an international energy company primarily engaged in the discovery, development, and extraction of crude oil and natural gas resources. Its operations are organized into distinct divisions: Exploration & Production; Global Gas & LNG Portfolio; Refining & Marketing and Chemicals; Plenitude and Power; and Corporate and Other activities. The Exploration & Production division is responsible for the research, development, and output of oil, condensates, and natural gas, additionally undertaking initiatives in forestry conservation and carbon dioxide capture and storage. Its Global Gas & LNG Portfolio division oversees the procurement and wholesale distribution of natural gas via pipelines, including international transport, along with the acquisition and sale of liquefied natural gas (LNG). The Refining & Marketing and Chemicals segment manages the processing, supply, distribution, and commercialization of various fuels and chemical products. The Plenitude and Power segment, formerly known as Eni gas e luce, handles the retail provision of gas and electricity, alongside related services, and is involved in generating and wholesaling electricity from both thermoelectric and renewable power facilities. As of December 31, 2021, the company declared net proved reserves totaling 6,628 million barrels of oil equivalent and possessed an operational capacity of 4.5 gigawatts (GW). Established in 1953, Eni's corporate headquarters are situated in Rome, Italy.
Financial Metrics — E Stock Valuation Data
Revenue/Share (TTM)
$56.48
FCF/Share (TTM)
$2.56
ROIC (TTM)
2.8%
ROE (TTM)
10.9%
P/FCF
18.4x
EV/EBITDA
6.4x
FCF Yield
5.43%
Debt/Equity
0.71x
On a trailing twelve-month basis, E generates free cash flow per share of $2.56 alongside a ROIC of 2.8%, both central inputs for a DCF valuation. Its P/FCF ratio of 18.4x and FCF yield of 5.43% then frame how E is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of E?
Eni S.p.A. currently generates $2.56 in free cash flow per share. At the current price of $55.21, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is E undervalued?
E trades at a P/FCF ratio of 18.4x with a free cash flow yield of 5.43%. This P/FCF is in a moderate range. However, whether E is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value E stock using DCF?
To perform a DCF valuation on Eni S.p.A.: (1) Start with the trailing free cash flow per share ($2.56) as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Integrated industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting E's risk profile — with a debt-to-equity of 0.71x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to E?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Eni S.p.A., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Oil & Gas Integrated trends, then discounting those amounts to today's dollars. E's ROIC of 2.8% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect E stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For E, with a debt-to-equity ratio of 0.71x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 6.4x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See E PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Energy valuationsDCF and P/E value E with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.