Hera S.p.A. (HER.MI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-92.2%

€0.29

vs €3.68 price

Levered DCF

-€0.20

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.45

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	12.56×	10.09×	9.58×	14×	15.91×	14.19×	15×	14.32×
P/B	1.44×	1.34×	1.25×	1.08×	1.67×	1.48×	2.04×	1.5×
P/S	0.45×	0.38×	0.28×	0.18×	0.51×	0.62×	0.83×	0.65×
EV / EBITDA	8.09×	5.78×	5.64×	7.31×	7.62×	7.3×	8.07×	7.36×
Gross margin	32.6%	41.2%	29.0%	6.7%	14.0%	18.2%	17.0%	18.8%
Operating margin	5.0%	6.4%	5.4%	2.7%	5.8%	7.8%	7.8%	8.3%
Net margin	3.6%	3.8%	2.9%	1.3%	3.2%	4.3%	5.6%	4.6%
Current ratio	1.1×	1.05×	1.11×	1.34×	1.06×	1.13×	1.07×	1.03×
Debt / equity	1.23×	1.3×	1.37×	1.67×	1.05×	1.26×	1.13×	1.21×
Interest coverage	2.8×	4.71×	4.24×	4.63×	5.48×	6.15×	4.5×	4.5×
Dividend yield	4.7%	5.0%	5.6%	6.0%	3.3%	3.4%	2.6%	3.8%
Payout ratio	59.1%	50.3%	54.2%	86.0%	52.6%	48.7%	38.9%	53.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.4%	13.4%	12.8%	7.5%	10.4%	10.2%	13.7%	10.6%
Return on invested capital	4.5%	6.2%	6.1%	3.6%	6.6%	4.9%	5.4%	5.3%
Return on assets	3.3%	3.3%	2.9%	1.5%	2.4%	2.7%	3.7%	3.1%
Free cash flow yield	3.3%	-0.1%	17.6%	-18.4%	8.5%	8.8%	3.4%	3.9%
Earnings yield	7.9%	10.0%	10.3%	7.0%	6.2%	6.9%	6.7%	7.1%
Enterprise value	€10.1B	€8.4B	€7.7B	€7.4B	€7.8B	€7.1B	€8.6B	€6.7B
Net debt / EBITDA	3.36×	2.39×	2.49×	3.69×	2.4×	2.81×	2.65×	2.96×
Cash conversion cycle (days)	-5	-23	19	35	23	19	49	27