EDP Renewables (FRA:EDW) EBIT: €868 Mil (TTM As of Dec. 2025)


FRA:EDW EDP Renewables SA FRA:EDW
74 GF Score
Price €13.33
GF Value €15.18
Valuation Modestly Undervalued
! 9 Warning Signs
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What is EDP Renewables EBIT?

EDP Renewables FRA:EDW -0.30% 74 EBIT is €868 Mil as of Dec. 2025. GuruFocus rates FRA:EDW with a GF Score™ of 74/100 and a GF Value™ of €15.18 (Modestly Undervalued). The stock has 9 warning signs investors should review.

EDP Renewables's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was €368 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was €868 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. EDP Renewables's annualized ROC % for the quarter that ended in Dec. 2025 was 1.82%. EDP Renewables's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 3.42%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. EDP Renewables's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 3.41%.


EDP Renewables  (FRA:EDW) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

EDP Renewables's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=870.93 * ( 1 - 37.91% )/( (29622.512 + 29657.935)/ 2 )
=540.760437/29640.2235
=1.82 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=30074.205 - 2145.582 - ( 907.962 - max(0, 5027.258 - 3333.369+907.962))
=29622.512

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=30390.07 - 1864.534 - ( 1198.833 - max(0, 4331.795 - 3199.396+1198.833))
=29657.935

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

EDP Renewables's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=735.228/( ( (21219.906 + max(-446.022, 0)) + (21719.491 + max(-772.969, 0)) )/ 2 )
=735.228/( ( 21219.906 + 21719.491 )/ 2 )
=735.228/21469.6985
=3.42 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(436.027 + 247.53 + 1370.519) - (2145.582 + 0 + 354.516)
=-446.022

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(399.236 + 235.526 + 666.586) - (1864.534 + 0 + 209.783)
=-772.969

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

EDP Renewables's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=867.791/25475.197
=3.41 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


EDP Renewables EBIT Related Terms


EDP Renewables EBIT Historical Data

* Premium members only.

The historical data trend for EDP Renewables's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

EDP Renewables EBIT Chart

EDP Renewables Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,188.05 1,408.24 839.73 -115.12 867.79

EDP Renewables Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 403.54 553.16 -668.28 500.18 367.61

EDP Renewables EBIT Competitor Comparison

For the Utilities - Renewable subindustry, EDP Renewables's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


EDP Renewables EV-to-EBIT vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, EDP Renewables's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where EDP Renewables's EV-to-EBIT falls into.


FRA:EDW
74GF Score
EDP Renewables SA FRA:EDW
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

EDP Renewables EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was €868 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €868 Mil mean?
EDP Renewables (FRA:EDW) has a EBIT of €868 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on EDP Renewables.
Is EDP Renewables' EBIT too high?
EDP Renewables' current EBIT is €868 Mil. Overall, EDP Renewables has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EDP Renewables' EBIT compare to competitors?
EDP Renewables' EBIT of €868 Mil can be compared against companies in the Utilities - Independent Power Producers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Utilities - Independent Power Producers company?
A good EBIT depends on the Utilities - Independent Power Producers industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on EDP Renewables. EDP Renewables's current EBIT is €868 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EDP Renewables stock overvalued right now?
Based on GuruFocus' analysis, EDP Renewables (FRA:EDW) is currently considered Modestly Undervalued. The stock's GF Value™ is €15.18, compared to a current price of €13.33 — trading 12.2% below its estimated fair value. The current EBIT is €868 Mil. EDP Renewables' overall GF Score™ is 74/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For EDP Renewables (FRA:EDW), the current EBIT is €868 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is EDP Renewables (FRA:EDW) Overvalued in 2026?

Based on GuruFocus' analysis, EDP Renewables stock appears to be undervalued. The current stock price of €13.33 is trading 12.2% below its estimated GF Value™ of €15.18. GuruFocus considers EDP Renewables to be Modestly Undervalued.

Key valuation signals for FRA:EDW:

  • EBIT: €868 Mil
  • GF Value™: €15.18 vs. price of €13.33 (12.2% below fair value)
  • GF Score™: 74/100 with 9 warning signs

No single metric tells the full story. See the FRA:EDW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


EDP Renewables Business Description

Address Avenida de Burgos 89, Edificio Adequa 1 A, 7th Floor, Edificio Olmo, Madrid, ESP, 28050
EDP Renovaveis, a 71%-owned subsidiary of integrated Portuguese utility EDP, was created in 2007. It builds, develops, and operates renewable plants, mostly wind and solar. With 20.4 gigawatts of installed capacity at end-2025, EDP Renovaveis is the third-largest European renewables player. The group's plants are mainly located in the U.S, Spain, Portugal, Poland, and Brazil.
74GF Score

Get the complete analysis for FRA:EDW

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€13.33
Price
€15.18
GF Value