Using the industry peer median P/E multiple (trailing + forward), CMS Energy Corporation (CMS) has a fair value of $76.02 based on 6 comparable companies in the Regulated Electric industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| CMS Energy CorporationCMS | 22,957 | 21.6x | 19.7x |
| The Southern CompanySO | 106,555 | 24.3x | 20.9x |
| DTE Energy CompanyDTE | 30,063 | 20.5x | 18.7x |
| FirstEnergy Corp.FE | 28,954 | 28.5x | 18.4x |
| Edison InternationalEIX | 27,262 | 6.1x | 11.6x |
| Evergy, Inc.EVRG | 18,526 | 22.0x | 18.9x |
| Alliant Energy CorporationLNT | 18,062 | 22.4x | 20.6x |
| Industry Median | 22.2x | 18.8x | |
| (*) Profit after tax | 1,071 | 1,166 | |
| Equity Value | 23,750 | 21,950 | |
| (/) Outstanding shares | 301 | 301 | |
| Fair Price | $79 | $73 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.