Italgas (BIT:IG) Posts Stronger Half Year Results, Is The 16% Undervalued View Right?

Earnings jump puts Italgas stock in focus

Italgas (BIT:IG) released half year 2026 results that caught investors' attention, with sales of €1,245.6 million and revenue of €1,324.2 million, alongside net income of €386.3 million.

These figures compare with €1,094.4 million in sales, €1,181.1 million in revenue and €334.8 million in net income a year earlier, giving the market fresh data points to reassess the stock.

See our latest analysis for Italgas.

Despite the stronger half year figures, Italgas has seen its short term share price momentum cool, with the share price down 10.31% over 30 days. This comes even as the 1 year total shareholder return of 31.05% and 3 year total shareholder return of 122.69% point to a much stronger longer term picture.

If this earnings move has you reassessing your watchlist, it could be a good time to broaden your scope and look at 35 power grid technology and infrastructure stocks

Italgas just reported stronger half year figures while the share price has fallen over recent months. Is this pullback mainly a reset in sentiment, or a signal that the current valuation already bakes in the progress?

Most Popular Narrative: 16% Undervalued

The most followed narrative on Italgas compares a fair value of €10.75 with the last close at €9.09, which implies a meaningful valuation gap in favor of the narrative.

The structural role of gas networks in a cost constrained, security focused European energy mix, with electricity prices remaining a multiple of gas and rising AI driven power demand, supports sustained utilization of Italgas grids and underpins long term revenue visibility and RAB growth.

Read the complete narrative.

Want to see what sits behind that confidence in long term grid usage and asset growth? The narrative leans heavily on future margins, revenue mix and earnings power assumptions that go well beyond the latest half year print.

Result: Fair Value of €10.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Italgas also faces risks that could challenge this undervaluation story if the large investment plan stalls or if expected cost savings from digitization and 2i Rete Gas integration fall short.

Find out about the key risks to this Italgas narrative.

Another view on Italgas valuation

The analyst narrative frames Italgas as about 16% undervalued at a fair value of €10.75 versus the current €9.09 share price. Yet Simply Wall St's own DCF model points in the opposite direction, with a future cash flow value of €5.57, which suggests the stock is priced well above that estimate. Which set of assumptions do you think is closer to how cash flows will actually play out?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Italgas for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 257 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If the mixed signals around Italgas leave you unsure, now is a good time to review the underlying data and weigh both sides carefully. To see the balance between the key risks and potential upsides that other investors are focusing on, start by checking the 4 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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