FirstEnergy Corp.

UtilitiesRegulated ElectricNYSE

$44.12

Market Cap: $25.52B

FirstEnergy Corp. (FE) Valuation Summary

Updated Apr 28, 2026 22:23

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$167.80 – $7,184.25	$353.89	+614.1%
Growth Exit 10Y	$193.31 – $7,632.60	$392.44	+691.8%
EBITDA Exit 5Y	$186.59 – $418.33	$292.68	+490.6%
EBITDA Exit 10Y	$212.24 – $508.44	$338.20	+582.4%
▸ Trading Multiples
P/E	$33.81 – $41.01	$44.13	-11.0%
EV/EBITDA	$43.70 – $58.56	$50.74	+2.4%
EV/Revenue	$91.72 – $107.27	$100.33	+102.4%
▸ PEG
PEG Fair Value	$52.94 – $52.94	$52.94	+6.8%
▸ Earnings Power Value
Earnings Power Value	$78.24 – $168.15	$111.30	+124.6%
▸ Dividend Discount
Dividend Discount	$25.71 – $68.48	$38.74	-21.8%

Valuation History

DCF Analysis

Fair Value

$353.89

Market Price

$44.12

Upside / Downside

+702.1%

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 1.4% 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 5.7% WACC with mid-year discounting, the terminal value (86% 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 $353.89 per share, suggesting FE is undervalued by 702.1% at the current price of $44.12.

FCFF Present Value Calculation

WACC

5.67%

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	8,611	8,960	9,387	9,758	10,132	10,386
(−) Net Interest	1,232	1,281	1,342	1,396	1,449	1,485
(+) D&A	3,458	3,772	4,057	4,261	4,365	4,474
EBITDA	13,301	14,014	14,786	15,414	15,946	16,345

(−) Tax	2,614	2,720	2,850	2,962	3,076	3,153
(−) CapEx	4,015	4,177	4,376	4,549	4,724	4,842
(−) ΔWC	159	31	37	33	33	34
Free Cash Flow (FCFF)	6,512	7,086	7,522	7,870	8,113	8,316

Terminal Value						262,534
WACC / Discount Rate	5.7%
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	6,335	6,523	6,554	6,489	6,331	199,287

Enterprise Value	231,518
Projection Period	32,232	13.9%
Terminal Value	199,287	86.1%

(−) Current Net Debt	26,971

Equity Value	204,547
(/) Outstanding Shares	578

Fair Price	$353.89

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
3.7%	$566	$732	$1041	$1812	$7184
4.7%	$372	$440	$539	$697	$991
5.7%	$271	$307	$354	$419	$513
6.7%	$209	$231	$258	$292	$337
7.7%	$168	$182	$199	$220	$245

Current price: $44.12. Green = undervalued, Red = overvalued.

Fair Value

$392.44

Market Price

$44.12

Upside / Downside

+789.5%

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 1.4% 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 5.7% WACC with mid-year discounting, the terminal value (75% 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 $392.44 per share, suggesting FE is undervalued by 789.5% at the current price of $44.12.

FCFF Present Value Calculation

WACC

5.67%

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	8,611	8,960	9,387	9,758	10,132	10,850	11,530	12,159	12,722	13,208	13,538
(−) Net Interest	1,232	1,281	1,342	1,396	1,449	1,552	1,649	1,739	1,820	1,889	1,936
(+) D&A	3,458	3,772	4,057	4,261	4,365	4,368	4,577	4,817	5,075	5,352	5,486
EBITDA	13,301	14,014	14,786	15,414	15,946	16,770	17,757	18,715	19,617	20,449	20,960

(−) Tax	2,614	2,720	2,850	2,962	3,076	3,294	3,501	3,691	3,862	4,010	4,110
(−) CapEx	4,015	4,177	4,376	4,549	4,724	5,059	5,376	5,669	5,932	6,158	6,312
(−) ΔWC	159	31	37	33	33	63	60	55	49	43	44
Free Cash Flow (FCFF)	6,512	7,086	7,522	7,870	8,113	8,355	8,821	9,299	9,774	10,238	10,494

Terminal Value											331,306
WACC / Discount Rate	5.7%
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	6,335	6,523	6,554	6,489	6,331	6,169	6,164	6,150	6,117	6,064	190,903

Enterprise Value	253,800
Projection Period	62,897	24.8%
Terminal Value	190,903	75.2%

(−) Current Net Debt	26,971

Equity Value	226,829
(/) Outstanding Shares	578

Fair Price	$392.44

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
3.7%	$657	$833	$1158	$1970	$7633
4.7%	$431	$499	$598	$757	$1053
5.7%	$313	$347	$392	$454	$545
6.7%	$242	$261	$286	$317	$358
7.7%	$193	$206	$221	$239	$261

Current price: $44.12. Green = undervalued, Red = overvalued.

Fair Value

$292.66

Market Price

$44.12

Upside / Downside

+563.3%

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 1.4% 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 5.7% WACC with mid-year discounting, the terminal value (84% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 13.2x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $292.68 per share, suggesting FE is undervalued by 563.4% at the current price of $44.12.

FCFF Present Value Calculation

WACC

5.67%

3% – 20%

EV/EBITDA Exit Multiple

13.21x

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	8,611	8,960	9,387	9,758	10,132	10,386
(−) Net Interest	1,232	1,281	1,342	1,396	1,449	1,485
(+) D&A	3,458	3,772	4,057	4,261	4,365	4,474
EBITDA	13,301	14,014	14,786	15,414	15,946	16,345

(−) Tax	2,614	2,720	2,850	2,962	3,076	—
(−) CapEx	4,015	4,177	4,376	4,549	4,724	—
(−) ΔWC	159	31	37	33	33	—
Free Cash Flow (FCF)	6,512	7,086	7,522	7,870	8,113	—

Peers' EBITDA Multiple						13.2x
Terminal Value						215,914
WACC / Discount Rate	5.67%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	6,335	6,523	6,554	6,489	6,331	163,897

Enterprise Value	196,129
Projection Period	32,232	16.4%
Terminal Value	163,897	83.6%

(−) Current Net Debt	26,971
Equity Value	169,158
(÷) Outstanding Shares	578M
Fair Price	$293	+563.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	9.2x	11.2x	13.2x	15.2x	17.2x
3.7%	$229	$277	$324	$371	$418
4.7%	$218	$263	$308	$353	$398
5.7%	$207	$250	$293	$336	$379
6.7%	$196	$237	$278	$319	$360
7.7%	$187	$226	$265	$304	$343

Current price: $44.12. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$338.18

Market Price

$44.12

Upside / Downside

+666.5%

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 1.4% 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 5.7% WACC with mid-year discounting, the terminal value (72% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 13.2x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $338.20 per share, suggesting FE is undervalued by 666.5% at the current price of $44.12.

FCFF Present Value Calculation

WACC

5.67%

3% – 20%

EV/EBITDA Exit Multiple

13.21x

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	8,611	8,960	9,387	9,758	10,132	10,850	11,530	12,159	12,722	13,208	13,538
(−) Net Interest	1,232	1,281	1,342	1,396	1,449	1,552	1,649	1,739	1,820	1,889	1,936
(+) D&A	3,458	3,772	4,057	4,261	4,365	4,368	4,577	4,817	5,075	5,352	5,486
EBITDA	13,301	14,014	14,786	15,414	15,946	16,770	17,757	18,715	19,617	20,449	20,960

(−) Tax	2,614	2,720	2,850	2,962	3,076	3,294	3,501	3,691	3,862	4,010	—
(−) CapEx	4,015	4,177	4,376	4,549	4,724	5,059	5,376	5,669	5,932	6,158	—
(−) ΔWC	159	31	37	33	33	63	60	55	49	43	—
Free Cash Flow (FCF)	6,512	7,086	7,522	7,870	8,113	8,355	8,821	9,299	9,774	10,238	—

Peers' EBITDA Multiple											13.2x
Terminal Value											276,880
WACC / Discount Rate	5.67%

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	6,335	6,523	6,554	6,489	6,331	6,169	6,164	6,150	6,117	6,064	159,542

Enterprise Value	222,439
Projection Period	62,897	28.3%
Terminal Value	159,542	71.7%

(−) Current Net Debt	26,971
Equity Value	195,468
(÷) Outstanding Shares	578M
Fair Price	$338	+666.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	9.2x	11.2x	13.2x	15.2x	17.2x
3.7%	$306	$357	$407	$458	$508
4.7%	$279	$325	$371	$417	$463
5.7%	$255	$296	$338	$380	$422
6.7%	$232	$270	$308	$347	$385
7.7%	$212	$247	$282	$316	$351

Current price: $44.12. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$44.12

Market Price

$44.12

Upside / Downside

-0.0%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), FirstEnergy Corp. (FE) has a fair value of $44.12 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	25,501	25.1x	16.2x
The Southern CompanySO	106,428	24.1x	20.7x
Duke Energy CorporationDUK	99,456	20.3x	19.1x
American Electric Power Company, Inc.AEP	73,702	20.4x	21.4x
Dominion Energy, Inc.D	55,287	18.2x	17.5x
Entergy CorporationETR	51,804	28.9x	25.7x
Xcel Energy Inc.XEL	49,608	23.2x	19.3x
Exelon CorporationEXC	48,117	17.2x	16.5x
Consolidated Edison, Inc.ED	40,386	19.4x	18.0x
Public Service Enterprise Group IncorporatedPEG	40,262	19.2x	18.5x
Ameren CorporationAEE	31,040	21.0x	20.9x
Industry Median		20.3x	19.2x
(*) Profit after tax		1,020	1,578
Equity Value		20,712	30,287
(/) Outstanding shares		578	578
Fair Price		$36	$52

Selected Fair Value (avg of trailing + forward)

$44.12

-0.0%

Fair Value

$51.11

Market Price

$44.12

Upside / Downside

+15.8%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), FirstEnergy Corp. (FE) has a fair value of $51.11 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	25,501	12.0x	11.7x
The Southern CompanySO	106,428	11.9x	11.5x
Duke Energy CorporationDUK	99,456	12.1x	11.8x
American Electric Power Company, Inc.AEP	73,702	14.1x	13.2x
Dominion Energy, Inc.D	55,287	13.0x	12.1x
Entergy CorporationETR	51,804	13.5x	12.5x
Xcel Energy Inc.XEL	49,608	13.9x	12.8x
Exelon CorporationEXC	48,117	11.1x	10.7x
Consolidated Edison, Inc.ED	40,386	11.0x	10.7x
Public Service Enterprise Group IncorporatedPEG	40,262	13.9x	13.8x
Ameren CorporationAEE	31,040	13.8x	13.3x
Industry Median		13.2x	12.3x
(*) EBITDA		4,388	4,482
= Enterprise Value		57,969	55,057
(-) Net Debt		26,971	26,971
Equity Value		30,998	28,086
(/) Outstanding shares		578	578
Fair Price		$54	$49

Selected Fair Value (avg of trailing + forward)

$51.11

+15.8%

Fair Value

$100.89

Market Price

$44.12

Upside / Downside

+128.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), FirstEnergy Corp. (FE) has a fair value of $100.89 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	25,501	3.5x	3.4x
The Southern CompanySO	106,428	5.8x	5.6x
Duke Energy CorporationDUK	99,456	5.9x	5.8x
American Electric Power Company, Inc.AEP	73,702	5.7x	5.3x
Dominion Energy, Inc.D	55,287	6.3x	5.9x
Entergy CorporationETR	51,804	6.4x	5.9x
Xcel Energy Inc.XEL	49,608	5.7x	5.3x
Exelon CorporationEXC	48,117	4.0x	3.9x
Consolidated Edison, Inc.ED	40,386	4.0x	3.9x
Public Service Enterprise Group IncorporatedPEG	40,262	5.3x	5.3x
Ameren CorporationAEE	31,040	5.8x	5.6x
Industry Median		5.8x	5.4x
(*) Revenue		15,090	15,413
= Enterprise Value		86,822	83,746
(-) Net Debt		26,971	26,971
Equity Value		59,851	56,775
(/) Outstanding shares		578	578
Fair Price		$104	$98

Selected Fair Value (avg of trailing + forward)

$100.89

+128.7%

PEG Fair Value

Fair Value

$52.94

Market Price

$44.12

Upside / Downside

+20.0%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 19.4% plus 3.5% dividend yield, the company has a fair value of $52.94 based on NTM EPS (FY2026) of $2.73. The current PEG ratio is 0.94.

PEG Ratio

0.94Undervalued

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 18.1 ÷ (15.8% + 3.5%) = 0.94

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	+3.5%
Adjusted Growth (clamped 8–25%)	19.4%
Fair P/E	19.4x
NTM EPS (FY2026)	$2.73
Fair Value	$52.94

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$1.76	—	—
FY2026E	$2.73	+55.2%	6
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

$111.30

Market Price

$44.12

Upside / Downside

+152.3%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 5.7% and normalized earnings of $5.2B, the company has a fair value of $111.30 per share. The EPV range is $78.24 – $168.15 based on WACC sensitivity (4.2% – 7.2%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	5,174	5,174	5,174
(/) WACC	7.2%	5.7%	4.2%
Enterprise Value	72,193	91,300	124,161
(-) Net debt	26,971	26,971	26,971
Equity Value	45,222	64,329	97,190
(/) Outstanding shares	578	578	578
Fair Price	$78.24	$111.30	$168.15

Dividend Discount Model

Fair Value

$38.74

Market Price

$44.12

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 $38.74 per share. The DDM range is $25.71 – $68.48 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.76

Dividend Yield

3.54%

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%	0.9278	$1.72
2027	$1.95	5.4%	0.8609	$1.68
2028	$2.06	5.4%	0.7988	$1.64
2029	$2.17	5.4%	0.7411	$1.61
2030	$2.29	5.4%	0.6876	$1.57
Terminal Value	$2.34 DPS	2.5%		$30.52

PV of Projected Dividends$8.22

PV of Terminal Value$30.52

Fair Value per Share$38.74

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%	$57	$60	$63	$66	$68
6.8%	$44	$46	$48	$50	$52
7.8%	$36	$37	$39	$40	$42
8.8%	$30	$31	$33	$34	$35
9.8%	$26	$27	$28	$29	$30

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.