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What is the current state of industry-leading firms in the renewable energy sector based on their stock returns and valuations?

Bautil, Pierre-Gilles
(2023)

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Bautil_24501400_2023.pdf
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Details

Supervisors
Iania, Leonardo
Faculty
Louvain School of Management
Degree label
Master [120] en sciences de gestion, à finalité spécialisée
Abstract
This paper focuses on analysing the RENIXX World Index’s current stocks with the use of the Fama and French 3 factor model. This index is comprised of the 30 biggest renewable energy companies worldwide. Returns on many renewable energy stocks have increased during the last few years because of increase in their prices. The objective of this paper is to see if this tendency also affected the stocks from the RENIXX World Index, and to identify how these returns are influenced by the factors present in our model. These factors are principally company size and the book-to-market ratio. Our study finds that the actual returns on these stocks are higher than those our model predicts based on the factors.