Eversource Energy Valuation

Is ES undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ES ($65.49) is trading below our estimate of fair value ($99.29)

Significantly Below Fair Value: ES is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for ES?

Other financial metrics that can be useful for relative valuation.

ES key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.6x
Enterprise Value/EBITDA12.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ES's PS Ratio compare to its peers?

The above table shows the PS ratio for ES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.9x
FE FirstEnergy
1.8x4.3%US$24.7b
PPL PPL
2.9x3.5%US$23.7b
NRG NRG Energy
0.6x3.5%US$18.2b
ETR Entergy
2.4x5.4%US$28.7b
ES Eversource Energy
2.1x6.0%US$23.1b

Price-To-Sales vs Peers: ES is expensive based on its Price-To-Sales Ratio (2.1x) compared to the peer average (1.9x).


Price to Earnings Ratio vs Industry

How does ES's PE Ratio compare vs other companies in the US Electric Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.9%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.9%
n/an/an/a
No more companies

Price-To-Sales vs Industry: ES is good value based on its Price-To-Sales Ratio (2.1x) compared to the US Electric Utilities industry average (2.4x).


Price to Sales Ratio vs Fair Ratio

What is ES's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ES PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.1x
Fair PS Ratio2.8x

Price-To-Sales vs Fair Ratio: ES is good value based on its Price-To-Sales Ratio (2.1x) compared to the estimated Fair Price-To-Sales Ratio (2.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ES forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$65.49
US$74.83
+14.3%
8.4%US$94.00US$66.00n/a17
Oct ’25US$67.73
US$73.89
+9.1%
8.6%US$94.00US$66.00n/a17
Sep ’25US$67.53
US$72.84
+7.9%
8.9%US$94.00US$62.00n/a18
Aug ’25US$66.07
US$69.37
+5.0%
10.9%US$94.00US$57.00n/a18
Jul ’25US$56.56
US$68.09
+20.4%
11.4%US$94.00US$57.00n/a18
Jun ’25US$59.23
US$68.53
+15.7%
11.6%US$94.00US$57.00n/a17
May ’25US$61.62
US$66.83
+8.5%
12.9%US$94.00US$50.00n/a18
Apr ’25US$58.88
US$66.29
+12.6%
13.1%US$94.00US$50.00n/a17
Mar ’25US$58.41
US$66.12
+13.2%
13.2%US$94.00US$50.00n/a17
Feb ’25US$55.96
US$65.29
+16.7%
14.2%US$94.00US$50.00n/a17
Jan ’25US$61.72
US$66.00
+6.9%
13.5%US$94.00US$50.00n/a17
Dec ’24US$60.78
US$65.35
+7.5%
14.1%US$94.00US$50.00n/a17
Nov ’24US$53.09
US$67.59
+27.3%
17.0%US$94.00US$50.00n/a17
Oct ’24US$58.15
US$78.06
+34.2%
9.2%US$94.00US$67.00US$67.7316
Sep ’24US$63.05
US$79.63
+26.3%
10.4%US$100.00US$67.00US$67.5316
Aug ’24US$70.35
US$82.00
+16.6%
10.3%US$100.00US$69.00US$66.0715
Jul ’24US$70.92
US$84.67
+19.4%
11.0%US$104.00US$71.00US$56.5615
Jun ’24US$68.83
US$86.80
+26.1%
9.4%US$104.00US$74.00US$59.2315
May ’24US$77.72
US$87.69
+12.8%
8.6%US$104.00US$74.00US$61.6216
Apr ’24US$78.26
US$87.38
+11.6%
8.9%US$104.00US$74.00US$58.8816
Mar ’24US$73.17
US$88.18
+20.5%
8.4%US$104.00US$74.00US$58.4117
Feb ’24US$82.71
US$89.28
+7.9%
8.0%US$104.00US$74.00US$55.9618
Jan ’24US$83.84
US$87.61
+4.5%
9.0%US$104.00US$74.00US$61.7218
Dec ’23US$83.91
US$86.06
+2.6%
9.0%US$104.00US$73.00US$60.7818
Nov ’23US$76.98
US$85.75
+11.4%
9.5%US$102.00US$73.00US$53.0918
Oct ’23US$77.96
US$93.42
+19.8%
7.1%US$104.00US$73.00US$58.1519

Analyst Forecast: Target price is less than 20% higher than the current share price.


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