FirstEnergy Corp.

UtilitiesRegulated ElectricNYSE

$44.34

Market Cap: $25.64B

FirstEnergy Corp. (FE) Valuation Summary

Updated May 9, 2026 17:03

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$173.91 – $35,622.95	$374.15	+743.9%
Growth Exit 10Y	$200.34 – $37,848.30	$414.94	+835.9%
EBITDA Exit 5Y	$187.11 – $421.43	$294.36	+564.0%
EBITDA Exit 10Y	$214.49 – $515.57	$342.47	+672.5%
▸ Trading Multiples
P/E	$32.62 – $41.50	$43.30	-2.3%
EV/EBITDA	$42.51 – $56.59	$49.98	+12.7%
EV/Revenue	$88.62 – $105.13	$99.41	+124.2%
▸ PEG
PEG Fair Value	$54.05 – $54.05	$54.05	+21.9%
▸ Earnings Power Value
Earnings Power Value	$80.61 – $175.25	$115.10	+159.6%
▸ Dividend Discount
Dividend Discount	$25.81 – $69.05	$38.94	-12.2%

Valuation History

DCF Analysis

Fair Value

$374.15

Market Price

$44.34

Upside / Downside

+743.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project FirstEnergy Corp.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 2.1% to 3.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 46, DPO 113, DIO 36). At a 5.5% WACC with mid-year discounting, the terminal value (87% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $374.15 per share, suggesting FE is undervalued by 743.9% at the current price of $44.34.

FCFF Present Value Calculation

WACC

5.53%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	8,678	9,037	9,478	9,825	10,198	10,453
(−) Net Interest	1,241	1,292	1,356	1,405	1,458	1,495
(+) D&A	3,458	3,779	4,070	4,283	4,393	4,503
EBITDA	13,378	14,108	14,903	15,512	16,049	16,450

(−) Tax	2,635	2,744	2,877	2,983	3,096	3,173
(−) CapEx	4,046	4,213	4,419	4,581	4,755	4,873
(−) ΔWC	165	31	39	30	33	34
Free Cash Flow (FCFF)	6,532	7,120	7,568	7,919	8,166	8,370

Terminal Value						275,854
WACC / Discount Rate	5.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	6,358	6,567	6,615	6,558	6,408	210,724

Enterprise Value	243,230
Projection Period	32,506	13.4%
Terminal Value	210,724	86.6%

(−) Current Net Debt	26,971

Equity Value	216,259
(/) Outstanding Shares	578

Fair Price	$374.15

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
3.5%	$611	$806	$1189	$2291	$35623
4.5%	$393	$469	$581	$767	$1133
5.5%	$284	$323	$374	$446	$553
6.5%	$218	$241	$270	$307	$356
7.5%	$174	$189	$207	$229	$257

Current price: $44.34. Green = undervalued, Red = overvalued.

Fair Value

$414.94

Market Price

$44.34

Upside / Downside

+835.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project FirstEnergy Corp.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 2.1% to 3.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 46, DPO 113, DIO 36). At a 5.5% WACC with mid-year discounting, the terminal value (76% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $414.94 per share, suggesting FE is undervalued by 835.9% at the current price of $44.34.

FCFF Present Value Calculation

WACC

5.53%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	8,678	9,037	9,478	9,825	10,198	10,920	11,605	12,237	12,805	13,293	13,626
(−) Net Interest	1,241	1,292	1,356	1,405	1,458	1,562	1,660	1,750	1,831	1,901	1,949
(+) D&A	3,458	3,779	4,070	4,283	4,393	4,403	4,612	4,851	5,109	5,386	5,521
EBITDA	13,378	14,108	14,903	15,512	16,049	16,885	17,876	18,839	19,744	20,581	21,095

(−) Tax	2,635	2,744	2,877	2,983	3,096	3,315	3,523	3,715	3,887	4,036	4,137
(−) CapEx	4,046	4,213	4,419	4,581	4,755	5,091	5,411	5,706	5,970	6,198	6,353
(−) ΔWC	165	31	39	30	33	63	60	55	50	43	44
Free Cash Flow (FCFF)	6,532	7,120	7,568	7,919	8,166	8,415	8,883	9,363	9,837	10,304	10,562

Terminal Value											348,104
WACC / Discount Rate	5.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	6,358	6,567	6,615	6,558	6,408	6,257	6,259	6,251	6,224	6,177	203,131

Enterprise Value	266,805
Projection Period	63,674	23.9%
Terminal Value	203,131	76.1%

(−) Current Net Debt	26,971

Equity Value	239,834
(/) Outstanding Shares	578

Fair Price	$414.94

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
3.5%	$709	$916	$1323	$2492	$37848
4.5%	$455	$532	$645	$833	$1203
5.5%	$328	$365	$415	$484	$588
6.5%	$251	$273	$299	$333	$378
7.5%	$200	$214	$229	$249	$273

Current price: $44.34. Green = undervalued, Red = overvalued.

Fair Value

$294.39

Market Price

$44.34

Upside / Downside

+564.0%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project FirstEnergy Corp.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 2.1% to 3.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 46, DPO 113, DIO 36). At a 5.5% WACC with mid-year discounting, the terminal value (84% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 13.1x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $294.36 per share, suggesting FE is undervalued by 564.0% at the current price of $44.34.

FCFF Present Value Calculation

WACC

5.53%

3% – 20%

EV/EBITDA Exit Multiple

13.10x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	8,678	9,037	9,478	9,825	10,198	10,453
(−) Net Interest	1,241	1,292	1,356	1,405	1,458	1,495
(+) D&A	3,458	3,779	4,070	4,283	4,393	4,503
EBITDA	13,378	14,108	14,903	15,512	16,049	16,450

(−) Tax	2,635	2,744	2,877	2,983	3,096	—
(−) CapEx	4,046	4,213	4,419	4,581	4,755	—
(−) ΔWC	165	31	39	30	33	—
Free Cash Flow (FCF)	6,532	7,120	7,568	7,919	8,166	—

Peers' EBITDA Multiple						13.1x
Terminal Value						215,500
WACC / Discount Rate	5.53%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	6,358	6,567	6,615	6,558	6,408	164,620

Enterprise Value	197,126
Projection Period	32,506	16.5%
Terminal Value	164,620	83.5%

(−) Current Net Debt	26,971
Equity Value	170,155
(÷) Outstanding Shares	578M
Fair Price	$294	+564.0%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	9.1x	11.1x	13.1x	15.1x	17.1x
3.5%	$230	$278	$326	$374	$421
4.5%	$218	$264	$310	$355	$401
5.5%	$207	$251	$294	$338	$381
6.5%	$197	$238	$280	$321	$363
7.5%	$187	$227	$266	$306	$345

Current price: $44.34. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$342.50

Market Price

$44.34

Upside / Downside

+672.5%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project FirstEnergy Corp.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 2.1% to 3.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 46, DPO 113, DIO 36). At a 5.5% WACC with mid-year discounting, the terminal value (72% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 13.1x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $342.47 per share, suggesting FE is undervalued by 672.5% at the current price of $44.34.

FCFF Present Value Calculation

WACC

5.53%

3% – 20%

EV/EBITDA Exit Multiple

13.10x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	8,678	9,037	9,478	9,825	10,198	10,920	11,605	12,237	12,805	13,293	13,626
(−) Net Interest	1,241	1,292	1,356	1,405	1,458	1,562	1,660	1,750	1,831	1,901	1,949
(+) D&A	3,458	3,779	4,070	4,283	4,393	4,403	4,612	4,851	5,109	5,386	5,521
EBITDA	13,378	14,108	14,903	15,512	16,049	16,885	17,876	18,839	19,744	20,581	21,095

(−) Tax	2,635	2,744	2,877	2,983	3,096	3,315	3,523	3,715	3,887	4,036	—
(−) CapEx	4,046	4,213	4,419	4,581	4,755	5,091	5,411	5,706	5,970	6,198	—
(−) ΔWC	165	31	39	30	33	63	60	55	50	43	—
Free Cash Flow (FCF)	6,532	7,120	7,568	7,919	8,166	8,415	8,883	9,363	9,837	10,304	—

Peers' EBITDA Multiple											13.1x
Terminal Value											276,350
WACC / Discount Rate	5.53%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	6,358	6,567	6,615	6,558	6,408	6,257	6,259	6,251	6,224	6,177	161,261

Enterprise Value	224,934
Projection Period	63,674	28.3%
Terminal Value	161,261	71.7%

(−) Current Net Debt	26,971
Equity Value	197,963
(÷) Outstanding Shares	578M
Fair Price	$342	+672.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	9.1x	11.1x	13.1x	15.1x	17.1x
3.5%	$309	$361	$412	$464	$516
4.5%	$282	$329	$376	$423	$469
5.5%	$257	$300	$342	$385	$428
6.5%	$235	$274	$312	$351	$390
7.5%	$214	$250	$285	$320	$356

Current price: $44.34. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$43.30

Market Price

$44.34

Upside / Downside

-2.3%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), FirstEnergy Corp. (FE) has a fair value of $43.30 based on 10 comparable companies in the Regulated Electric industry.

P/E Valuation — Regulated Electric

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
FirstEnergy Corp.FE	25,626	25.2x	16.2x
The Southern CompanySO	104,196	23.6x	20.2x
Duke Energy CorporationDUK	96,802	19.7x	18.5x
American Electric Power Company, Inc.AEP	70,821	19.5x	20.5x
Dominion Energy, Inc.D	54,425	17.9x	17.2x
Entergy CorporationETR	51,089	28.5x	25.4x
Xcel Energy Inc.XEL	50,210	23.5x	19.6x
Exelon CorporationEXC	44,929	16.0x	15.4x
Consolidated Edison, Inc.ED	39,167	18.8x	17.4x
Public Service Enterprise Group IncorporatedPEG	38,817	18.5x	17.8x
Ameren CorporationAEE	30,175	20.4x	20.3x
Industry Median		19.6x	19.0x
(*) Profit after tax		1,020	1,578
Equity Value		20,003	30,053
(/) Outstanding shares		578	578
Fair Price		$35	$52

Selected Fair Value (avg of trailing + forward)

$43.30

-2.3%

Fair Value

$49.98

Market Price

$44.34

Upside / Downside

+12.7%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), FirstEnergy Corp. (FE) has a fair value of $49.98 based on 10 comparable companies in the Regulated Electric industry.

EV/EBITDA Valuation — Regulated Electric

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
FirstEnergy Corp.FE	25,626	12.0x	11.7x
The Southern CompanySO	104,196	11.7x	11.3x
Duke Energy CorporationDUK	96,802	12.0x	11.6x
American Electric Power Company, Inc.AEP	70,821	13.7x	12.8x
Dominion Energy, Inc.D	54,425	12.9x	11.8x
Entergy CorporationETR	51,089	13.3x	12.4x
Xcel Energy Inc.XEL	50,210	14.0x	12.9x
Exelon CorporationEXC	44,929	10.7x	10.3x
Consolidated Edison, Inc.ED	39,167	10.8x	10.4x
Public Service Enterprise Group IncorporatedPEG	38,817	13.6x	13.5x
Ameren CorporationAEE	30,175	13.5x	13.0x
Industry Median		13.1x	12.1x
(*) EBITDA		4,388	4,482
= Enterprise Value		57,478	54,243
(-) Net Debt		26,971	26,971
Equity Value		30,507	27,272
(/) Outstanding shares		578	578
Fair Price		$53	$47

Selected Fair Value (avg of trailing + forward)

$49.98

+12.7%

Fair Value

$99.41

Market Price

$44.34

Upside / Downside

+124.2%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), FirstEnergy Corp. (FE) has a fair value of $99.41 based on 10 comparable companies in the Regulated Electric industry.

EV/Revenue Valuation — Regulated Electric

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
FirstEnergy Corp.FE	25,626	3.5x	3.4x
The Southern CompanySO	104,196	5.7x	5.5x
Duke Energy CorporationDUK	96,802	5.8x	5.7x
American Electric Power Company, Inc.AEP	70,821	5.5x	5.2x
Dominion Energy, Inc.D	54,425	6.2x	5.7x
Entergy CorporationETR	51,089	6.3x	5.9x
Xcel Energy Inc.XEL	50,210	5.8x	5.3x
Exelon CorporationEXC	44,929	3.9x	3.7x
Consolidated Edison, Inc.ED	39,167	3.9x	3.8x
Public Service Enterprise Group IncorporatedPEG	38,817	5.2x	5.2x
Ameren CorporationAEE	30,175	5.7x	5.5x
Industry Median		5.7x	5.4x
(*) Revenue		15,090	15,413
= Enterprise Value		85,854	83,005
(-) Net Debt		26,971	26,971
Equity Value		58,883	56,034
(/) Outstanding shares		578	578
Fair Price		$102	$97

Selected Fair Value (avg of trailing + forward)

$99.41

+124.2%

PEG Fair Value

Fair Value

$54.05

Market Price

$44.34

Upside / Downside

+21.9%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 19.8% plus 4.0% dividend yield, the company has a fair value of $54.05 based on NTM EPS (FY2026) of $2.73. The current PEG ratio is 0.82.

PEG Ratio

0.82Undervalued

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 16.2 ÷ (15.8% + 4.0%) = 0.82

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	15.8%
Dividend Yield	+4.0%
Adjusted Growth (clamped 8–25%)	19.8%
Fair P/E	19.8x
NTM EPS (FY2026)	$2.73
Fair Value	$54.05

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$1.76	—	—
FY2026E	$2.73	+55.1%	4
FY2027E	$2.95	+7.9%	6
FY2028E	$3.18	+7.9%	6
FY2029E	$3.40	+6.9%	5
FY2030E	$3.67	+8.0%	3

5Y Forward EPS CAGR: 15.8%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$1.3B	$2.35	—
FY2022	$406.0M	$0.71	-69.8%
FY2023	$1.1B	$1.92	+170.4%
FY2024	$978.0M	$1.70	-11.5%
FY2025	$1.0B	$1.76	+3.5%

4Y Historical EPS CAGR: -7.0%

Earnings Power Value

Fair Value

$115.10

Market Price

$44.34

Upside / Downside

+159.6%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 5.5% and normalized earnings of $5.2B, the company has a fair value of $115.10 per share. The EPV range is $80.61 – $175.25 based on WACC sensitivity (4.0% – 7.0%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	5,174	5,174	5,174
(/) WACC	7.0%	5.5%	4.0%
Enterprise Value	73,562	93,500	128,266
(-) Net debt	26,971	26,971	26,971
Equity Value	46,591	66,529	101,295
(/) Outstanding shares	578	578	578
Fair Price	$80.61	$115.10	$175.25

Dividend Discount Model

Fair Value

$38.94

Market Price

$44.34

Upside / Downside

-12.2%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.8% and projected dividend growth of 5.4%, the fair value is $38.94 per share. The DDM range is $25.81 – $69.05 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.76

Dividend Yield

3.96%

Payout Ratio

99.6%

Dividend Coverage

1.00x

DPS CAGR (4Y)3.1%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.76	99.6%	+4.6%
2024	$1.68	99.2%	+6.5%
2023	$1.58	82.2%	+1.3%
2022	$1.56	219.5%	+0.2%
2021	$1.55	66.2%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.85	5.4%	0.9281	$1.72
2027	$1.95	5.4%	0.8613	$1.68
2028	$2.06	5.4%	0.7993	$1.64
2029	$2.17	5.4%	0.7418	$1.61
2030	$2.29	5.4%	0.6885	$1.57
Terminal Value	$2.34 DPS	2.5%		$30.71

PV of Projected Dividends$8.23

PV of Terminal Value$30.71

Fair Value per Share$38.94

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	3.4%	4.4%	5.4%	6.4%	7.4%
5.8%	$58	$60	$63	$66	$69
6.8%	$44	$46	$48	$50	$53
7.8%	$36	$37	$39	$41	$42
8.8%	$30	$31	$33	$34	$36
9.8%	$26	$27	$28	$29	$31

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.