Key Takeaways:
- Revenue Momentum: Prysmian S.p.A. delivered about €5 billion of quarterly revenue and 11% YoY growth, showing Prysmian S.p.A. is still compounding demand while scaling beyond €17 billion of 2024 sales.
- Margin Trajectory: Prysmian S.p.A. runs at an 8% LTM operating margin and the model assumes 10% by 2027, meaning Prysmian S.p.A.’s return case depends on sustained efficiency gains rather than volume alone.
- Price Target: Prysmian S.p.A. is valued at €99 per share by 2027 versus a €96 current price, tying Prysmian S.p.A.’s upside to a 19x exit P/E and continued earnings delivery.
- Return Profile: Prysmian S.p.A.’s model implies a 4% total return over about 2 years, which translates to roughly 2% annualized and frames Prysmian S.p.A. as an execution-driven, low-upside setup at today’s valuation.
Prysmian S.p.A. (PRY) makes power and telecom cables across Transmission, Power Grid, Electrification, and Digital Solutions and generated about €19 billion of revenue over the past twelve months.
Prysmian S.p.A. strengthened its strategic positioning with an 80% owned JV to acquire Xtera (XCOM.Q) targeted for Q1 2026, a €300 million EIB financing, and a recycling partnership aiming to repurpose 60% of plastic scrap.
In Prysmian S.p.A.’s most recent quarter, revenue was about €5 billion and grew 11% YoY, which matters because it shows demand is still expanding even after €17 billion in 2024 sales.
Prysmian S.p.A. generated about €2 billion of LTM operating income at an 8% operating margin and about €1 billion of 2024 normalized net income, which matters because profitability is improving as revenue scales.
Even with Prysmian S.p.A. trading near €96 and at 21x NTM normalized earnings, the guided model points to €99 by 2027, setting up tension between strong execution and a 2% annual return profile.
What the Model Says for PRY Stock
The model links Prysmian S.p.A.’s operating scale and capital discipline to steady cash generation, but limits returns given today’s already elevated valuation.
Using 8.2% revenue growth, 10.1% operating margins, and an 18.6x exit P/E, the model projects Prysmian S.p.A. reaching €99.34 per share.
That implies a 3.7% total return, or 1.9% annualized, from €95.80 today through 2027.
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for PRY stock:
1. Revenue Growth: 8,2%
Prysmian S.p.A. expanded revenue from €15 billion in 2023 to about €19 billion LTM, showing durable demand across energy transition and digital infrastructure cycles.
Recent quarterly revenue of roughly €5 billion and 11% YoY growth indicate Prysmian S.p.A. continues converting large project awards into sales despite tougher comparables.
Forward growth moderates as Prysmian S.p.A. scales beyond €20 billion in annual sales, with electrification and submarine cables offsetting slower grid replacement activity.
An 8.2% revenue growth assumption captures Prysmian S.p.A.’s shift from rapid expansion to steadier growth, supported by backlog visibility and diversified end markets, according to pooled market projections.
2. Operating Margins: 10.1%
Prysmian S.p.A.’s operating margin improved from 7% in 2022 to about 8% LTM, meaning, its structural efficiency gains as scale increased across higher value transmission projects.
Cost discipline and pricing held operating income near €2 billion LTM which shows Prysmian S.p.A. retains margin leverage even as raw material volatility eases.
A normalized 10.1% operating margin represents Prysmian S.p.A.’s improving efficiency profile without embedding peak-cycle assumptions for large infrastructure projects, as reflected in aggregated analyst forecasts.
3. Exit P/E Multiple: 18.6x
Prysmian S.p.A. currently trades near 21x forward earnings, reflecting investor confidence in energy infrastructure exposure but limited tolerance for earnings volatility.
Historically, Prysmian S.p.A. has traded between roughly 15x and 19x earnings during stable growth periods, suggesting valuation sensitivity to backlog visibility and margin consistency.
Sustaining an elevated multiple requires steady profit conversion and capital discipline, while execution slips or slower electrification spending would pressure sentiment.
An 18.6x exit multiple reflects Prysmian S.p.A.’s mature growth profile and supports a €99.34 target price, translating into a 3.7% total return and a 1.9% annualized return based on consensus expectations.
What Happens If Things Go Better or Worse?
Prysmian S.p.A.’s outcomes hinge on large-project execution, electrification demand, and cost discipline, creating a narrow range of paths through 2027.
- Low Case: If project timing softens and mix benefits are limited, Prysmian S.p.A. holds revenue growth at 6.2%, operating margins near 6.4%, valuation stays steady, and returns rely on execution → -3.7% annualized return.
- Mid Case: With Prysmian S.p.A.’s core electrification and submarine backlog converting as expected, revenue growth at 6.8%, margins improving toward 6.8%, and stable valuation support measured upside → 1.5% annualized return.
- High Case: If Prysmian S.p.A. sustains strong execution across energy transition projects and cost control remains tight, revenue reaches 7.5%, margins approach 7%, and valuation pressure eases modestly → 6% annualized return.
What matters now for Prysmian S.p.A. is consistent project delivery and margin discipline, not aggressive volume expansion or sentiment-driven re-rating.
The €102 mid-case target for Prysmian S.p.A. is achievable through earnings delivery alone and does not depend on multiple expansion or speculative assumptions.
How Much Upside Does It Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
