Using the industry peer median P/E multiple (trailing + forward), Eversource Energy (ES) has a fair value of $91.73 based on 10 comparable companies in the Regulated Electric industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Eversource EnergyES | 25,247 | 14.9x | 14.0x |
| Exelon CorporationEXC | 49,400 | 17.6x | 16.9x |
| Xcel Energy Inc.XEL | 48,600 | 22.8x | 18.9x |
| Entergy CorporationETR | 46,513 | 26.3x | 23.4x |
| Consolidated Edison, Inc.ED | 40,274 | 19.8x | 18.3x |
| Public Service Enterprise Group IncorporatedPEG | 40,257 | 19.2x | 18.4x |
| DTE Energy CompanyDTE | 30,063 | 20.5x | 18.7x |
| Ameren CorporationAEE | 30,016 | 20.3x | 20.2x |
| FirstEnergy Corp.FE | 28,954 | 28.5x | 18.4x |
| CenterPoint Energy, Inc.CNP | 27,672 | 26.5x | 22.2x |
| Edison InternationalEIX | 27,262 | 6.1x | 11.6x |
| Industry Median | 20.4x | 18.6x | |
| (*) Profit after tax | 1,692 | 1,807 | |
| Equity Value | 34,514 | 33,595 | |
| (/) Outstanding shares | 371 | 371 | |
| Fair Price | $93 | $90 | |
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.