NextEra Energy, Inc.

DB:FP3 Stock Report

Market Cap: €150.1b

NextEra Energy Valuation

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 (€74.41) is trading above our estimate of fair value (€71.12)

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 Ratio22.5x
EarningsUS$6.95b
Market CapUS$156.29b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
EBK EnBW Energie Baden-Württemberg
28.5xn/a€17.1b
LEC Lechwerke
25.9xn/a€2.5b
EOAN E.ON
17.5x8.9%€31.4b
RWE RWE
8.2x-10.8%€23.1b
FP3 NextEra Energy
22.5x8.7%€156.3b

Price-To-Earnings vs Peers: FP3 is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FP3 22.5xIndustry Avg. 12.7xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FP3 is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the European Electric Utilities industry average (12.7x).

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 Ratio22.5x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: FP3 is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).

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 FP3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€74.41
€83.73
+12.5%
12.1%€98.72€55.70n/a22
Nov ’25€71.05
€81.21
+14.3%
11.5%€94.66€53.41n/a22
Oct ’25€77.04
€75.64
-1.8%
14.1%€92.32€41.31n/a22
Sep ’25€72.26
€74.68
+3.3%
13.8%€92.82€41.53n/a21
Aug ’25€72.30
€74.64
+3.2%
13.8%€95.26€42.63n/a21
Jul ’25€65.58
€73.44
+12.0%
14.9%€96.25€43.07n/a21
Jun ’25€73.63
€67.59
-8.2%
13.6%€87.57€42.40n/a20
May ’25€62.89
€67.13
+6.7%
11.7%€79.50€41.15n/a20
Apr ’25€59.05
€64.77
+9.7%
12.0%€77.87€40.79n/a19
Mar ’25€50.84
€64.86
+27.6%
11.1%€77.52€42.45n/a19
Feb ’25€54.69
€64.99
+18.8%
11.2%€77.38€42.38n/a19
Jan ’25€55.29
€63.21
+14.3%
11.7%€76.81€40.23n/a19
Dec ’24€54.45
€63.60
+16.8%
13.6%€81.11€40.10n/a18
Nov ’24€54.99
€70.29
+27.8%
15.3%€97.29€52.05€71.0518
Oct ’24€54.23
€77.89
+43.6%
13.2%€99.32€61.48€77.0420
Sep ’24€61.90
€81.25
+31.3%
9.4%€99.20€69.81€72.2619
Aug ’24€65.95
€81.48
+23.6%
9.2%€98.22€69.11€72.3018
Jul ’24€68.07
€83.63
+22.9%
7.9%€99.15€73.45€65.5819
Jun ’24€67.74
€84.86
+25.3%
7.9%€99.87€73.98€73.6318
May ’24€69.45
€84.92
+22.3%
7.1%€98.01€74.42€62.8917
Apr ’24€70.90
€86.64
+22.2%
7.2%€100.38€74.35€59.0516
Mar ’24€65.55
€88.22
+34.6%
8.4%€103.75€75.46€50.8416
Feb ’24€67.95
€86.34
+27.1%
8.5%€101.41€73.75€54.6916
Jan ’24€78.80
€89.52
+13.6%
6.8%€98.99€73.54€55.2916
Dec ’23€80.37
€89.97
+11.9%
6.4%€99.24€75.30€54.4517
Nov ’23€78.71
€93.97
+19.4%
6.3%€104.05€78.95€54.9917

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

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