NextEra Energy Valuation

Is 1NEE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 1NEE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1NEE (€68.45) is trading below our estimate of fair value (€69.37)

Significantly Below Fair Value: 1NEE is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1NEE?

Key metric: As 1NEE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1NEE. This is calculated by dividing 1NEE's market cap by their current earnings.
What is 1NEE's PE Ratio?
PE Ratio21.2x
EarningsUS$6.95b
Market CapUS$147.38b

Price to Earnings Ratio vs Peers

How does 1NEE's PE Ratio compare to its peers?

The above table shows the PE ratio for 1NEE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.6x
ENEL Enel
12.8x4.9%€69.1b
TRN Terna
14.5x1.5%€15.3b
EVISO eVISO
32x26.4%€156.1m
DUK Duke Energy
19.3x7.6%US$83.6b
1NEE NextEra Energy
21.2x9.1%€147.4b

Price-To-Earnings vs Peers: 1NEE is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the peer average (19.6x).


Price to Earnings Ratio vs Industry

How does 1NEE's PE Ratio compare vs other companies in the European Electric Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1NEE 21.2xIndustry Avg. 12.5xNo. of Companies11PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1NEE is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the European Electric Utilities industry average (12.5x).


Price to Earnings Ratio vs Fair Ratio

What is 1NEE'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.

1NEE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1NEE'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?

The above table shows the analyst 1NEE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€68.45
€83.52
+22.0%
12.2%€98.52€55.59n/a22
Dec ’25€74.77
€83.73
+12.0%
12.1%€98.72€55.70n/a22
Nov ’25€72.27
€81.21
+12.4%
11.5%€94.66€53.41n/a22
Oct ’25n/a
€75.64
0%
14.1%€92.32€41.31n/a22
Sep ’25n/a
€74.68
0%
13.8%€92.82€41.53n/a21
Aug ’25n/a
€74.64
0%
13.8%€95.26€42.63n/a21
Jul ’25n/a
€73.44
0%
14.9%€96.25€43.07n/a21
Jun ’25n/a
€67.59
0%
13.6%€87.57€42.40n/a20
May ’25n/a
€67.13
0%
11.7%€79.50€41.15n/a20
Apr ’25n/a
€64.77
0%
12.0%€77.87€40.79n/a19
Mar ’25n/a
€64.86
0%
11.1%€77.52€42.45n/a19
Feb ’25n/a
€64.99
0%
11.2%€77.38€42.38n/a19
Jan ’25n/a
€63.21
0%
11.7%€76.81€40.23n/a19
Dec ’24n/a
€63.60
0%
13.6%€81.11€40.10€74.7718
Nov ’24n/a
€70.29
0%
15.3%€97.29€52.05€72.2718
Oct ’24n/a
€77.89
0%
13.2%€99.32€61.48n/a20
Sep ’24n/a
€81.25
0%
9.4%€99.20€69.81n/a19
Aug ’24n/a
€81.48
0%
9.2%€98.22€69.11n/a18
Jul ’24n/a
€83.63
0%
7.9%€99.15€73.45n/a19
Jun ’24n/a
€84.86
0%
7.9%€99.87€73.98n/a18
May ’24n/a
€84.92
0%
7.1%€98.01€74.42n/a17
Apr ’24n/a
€86.64
0%
7.2%€100.38€74.35n/a16
Mar ’24n/a
€88.22
0%
8.4%€103.75€75.46n/a16
Feb ’24n/a
€86.34
0%
8.5%€101.41€73.75n/a16
Jan ’24n/a
€89.52
0%
6.8%€98.99€73.54n/a16
Dec ’23n/a
€89.97
0%
6.4%€99.24€75.30n/a17

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 07:33
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

NextEra Energy, Inc. is covered by 49 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jacob KilsteinArgus Research Company
Finbarr MacCarthyAtlantic Equities LLP
David ParkerBaird