Gas Natural announced a bid for Spanish utility Endesa at EUR 22bn or EUR 21.3/share. The price includes 31% cash and the rest in shares. We took the transaction multiples and calculated the implied value of CEZ. It transpires that CEZ offers an upside potential based on EV/EBITDA and EV/Installed capacity, which we consider as the most appropriate ratios.
P/E 2005 P/E 2006 EV/EBITDA 2005 EV/EBITDA 2006 EV/Installed capacity (CZK)
Multiple 18.1 18.1 8.1 8.1 53,201,240
Implied value in CZK/share 475 662 561 692 1,054