CenterPoint Energy Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 HOU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HOU (€26.8) is trading above our estimate of fair value (€25.62)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HOU 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/Revenue4.4x
Enterprise Value/EBITDA12.3x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HOU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.2x
EOAN E.ON
18.2x8.6%€32.6b
MNV6 Mainova
32.8xn/a€1.9b
WWG Gelsenwasser
13.5xn/a€1.7b
MVV1 MVV Energie
12.5xn/a€2.0b
HOU CenterPoint Energy
19.3x9.6%€18.6b

Price-To-Earnings vs Peers: HOU is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (19.2x).


Price to Earnings Ratio vs Industry

How does HOU's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a4.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a4.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: HOU is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the Global Integrated Utilities industry average (17.1x).


Price to Earnings Ratio vs Fair Ratio

What is HOU'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.

HOU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.3x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: HOU is good value based on its Price-To-Earnings Ratio (19.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).


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 HOU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€26.80
€28.34
+5.7%
4.4%€30.39€26.70n/a16
Oct ’25€26.00
€26.68
+2.6%
5.7%€30.55€25.16n/a16
Sep ’25€24.20
€26.46
+9.3%
5.5%€30.38€25.02n/a15
Aug ’25€25.40
€28.52
+12.3%
4.4%€31.40€26.78n/a16
Jul ’25€28.40
€28.94
+1.9%
5.0%€31.73€27.06n/a16
Jun ’25€27.00
€28.55
+5.7%
4.7%€31.30€26.70n/a16
May ’25€27.00
€28.77
+6.6%
4.7%€31.80€27.12n/a16
Apr ’25€25.80
€28.24
+9.4%
4.6%€31.32€25.79n/a17
Mar ’25€25.00
€28.18
+12.7%
4.9%€31.42€25.87n/a17
Feb ’25€25.60
€28.13
+9.9%
5.2%€31.24€25.73n/a17
Jan ’25€25.40
€27.60
+8.7%
5.4%€31.09€24.69n/a16
Dec ’24€25.60
€27.72
+8.3%
6.3%€31.16€24.74n/a16
Nov ’24€25.00
€28.69
+14.8%
6.0%€32.18€25.55€26.8016
Oct ’24€25.20
€29.96
+18.9%
6.6%€31.84€26.22€26.0015
Sep ’24€25.60
€29.70
+16.0%
6.0%€31.30€25.77€24.2015
Aug ’24€26.80
€29.56
+10.3%
4.9%€30.92€26.37€25.4014
Jul ’24€26.40
€29.85
+13.1%
4.9%€32.72€27.11€28.4014
Jun ’24€25.80
€29.30
+13.6%
4.9%€31.76€26.32€27.0014
May ’24€27.40
€29.30
+6.9%
4.9%€31.76€26.32€27.0014
Apr ’24€26.80
€29.28
+9.2%
4.8%€30.67€26.02€25.8014
Mar ’24€25.80
€30.06
+16.5%
4.3%€32.07€27.35€25.0015
Feb ’24€27.20
€29.41
+8.1%
4.7%€32.17€26.65€25.6015
Jan ’24€28.20
€29.87
+5.9%
5.8%€33.00€27.34€25.4016
Dec ’23€29.60
€30.05
+1.5%
4.9%€32.82€28.00€25.6016
Nov ’23€28.40
€31.32
+10.3%
5.6%€34.42€27.33€25.0017

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


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