NextEra Energy Valuation

Q: What is the Fair Price of FP3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FP3 (€69.88) is trading above our estimate of [[fair value]] (€38.39)

Is FP3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FP3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FP3 (€69.88) is trading above our estimate of fair value (€38.39)

Significantly Below Fair Value: FP3 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FP3?

Key metric: As FP3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FP3. This is calculated by dividing FP3's market cap by their current earnings.
What is FP3's PE Ratio?
PE Ratio	38.6x
Earnings	US$4.15b
Market Cap	US$159.93b

FP3 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/Revenue	11.2x
Enterprise Value/EBITDA	27.4x
PEG Ratio	2.9x

Price to Earnings Ratio vs Peers

How does FP3's PE Ratio compare to its peers?

The above table shows the PE ratio for FP3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	16.5x
SO Southern	20.4x	5.5%	US$96.7b
IBE Iberdrola	12.8x	-2.6%	€82.5b
DUK Duke Energy	20.3x	7.7%	US$87.7b
ENEL Enel	12.4x	5.0%	€66.7b
FP3 NextEra Energy	38.6x	13.1%	€159.9b

Price-To-Earnings vs Peers: FP3 is expensive based on its Price-To-Earnings Ratio (38.6x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

How does FP3's PE Ratio compare vs other companies in the European Electric Utilities Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: FP3 is expensive based on its Price-To-Earnings Ratio (38.6x) compared to the European Electric Utilities industry average (8.6x).

Price to Earnings Ratio vs Fair Ratio

What is FP3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FP3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	38.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FP3's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.