DNNGY - EDP's P/E Style Model Showing Its Fangs

• One of the attractive things about EDP was its valuation relative to the multiples and returns it was getting on its renewable assets.
• The P/E model is really showing nice gains, with rotating out of assets providing nice returns and proving the value of their even larger portfolio now.
• Moreover, EDP has over the years increased its focus on generation which is good, but they also achieved new business in Spain with the Viesgo concession.
• Their income is pretty inflation resistant on the regulated side and actually isn't a bad exposure in a rate-hike environment.
• While they can't benefit immediately and massively from energy price increases, they can benefit a bit, and with prices having languished for the last few years, they seem a buy.

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