Using the industry peer median P/E multiple (trailing + forward), NRG Energy, Inc. (NRG) has a fair value of $130.34 based on 9 comparable companies in the Independent Power Producers industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| NRG Energy, Inc.NRG | 29,150 | 36.5x | 15.9x |
| Consolidated Edison, Inc.ED | 40,274 | 19.8x | 18.3x |
| Public Service Enterprise Group IncorporatedPEG | 40,257 | 19.2x | 18.4x |
| PG&E CorporationPCG | 38,069 | 14.7x | 10.5x |
| WEC Energy Group, Inc.WEC | 37,111 | 23.6x | 20.4x |
| Atmos Energy CorporationATO | 30,270 | 24.5x | 22.1x |
| DTE Energy CompanyDTE | 30,063 | 20.5x | 18.7x |
| Ameren CorporationAEE | 30,016 | 20.3x | 20.2x |
| PPL CorporationPPL | 28,163 | 23.4x | 19.2x |
| Eversource EnergyES | 25,539 | 14.9x | 14.0x |
| Industry Median | 20.3x | 18.7x | |
| (*) Profit after tax | 864 | 1,833 | |
| Equity Value | 17,536 | 34,341 | |
| (/) Outstanding shares | 199 | 199 | |
| Fair Price | $88 | $173 | |
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.