Constellation Energy Corporation

NasdaqGS:CEG Stock Report

Market Cap: US$78.8b

Constellation Energy Valuation

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

Below Fair Value: CEG ($249.89) is trading below our estimate of fair value ($378.33)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CEG. This is calculated by dividing CEG's market cap by their current earnings.
What is CEG's PE Ratio?
PE Ratio27.3x
EarningsUS$2.86b
Market CapUS$78.77b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.3x
DUK Duke Energy
20.5x7.7%US$88.7b
AEP American Electric Power Company
19.7x9.1%US$52.2b
SO Southern
20.3x5.5%US$96.6b
PCG PG&E
16.6x10.4%US$45.4b
CEG Constellation Energy
27.3x3.4%US$78.8b

Price-To-Earnings vs Peers: CEG is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (19.3x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
CEG 27.3xIndustry Avg. 21.2xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CEG is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the US Electric Utilities industry average (21.2x).

Price to Earnings Ratio vs Fair Ratio

What is CEG'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.

CEG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.3x
Fair PE Ratio25.2x

Price-To-Earnings vs Fair Ratio: CEG is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.2x).

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 CEG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$249.89
US$277.70
+11.1%
13.4%US$342.00US$205.12n/a16
Nov ’25US$258.10
US$282.44
+9.4%
12.0%US$342.00US$205.12n/a17
Oct ’25US$265.61
US$264.23
-0.5%
11.7%US$313.00US$205.12n/a15
Sep ’25US$196.70
US$225.76
+14.8%
7.2%US$250.00US$189.00n/a14
Aug ’25US$177.57
US$232.66
+31.0%
5.1%US$250.00US$217.00n/a13
Jul ’25US$205.05
US$234.66
+14.4%
4.9%US$250.00US$217.00n/a13
Jun ’25US$217.25
US$233.12
+7.3%
4.7%US$250.00US$217.00n/a12
May ’25US$184.56
US$183.09
-0.8%
21.0%US$227.00US$116.00n/a11
Apr ’25US$185.98
US$171.73
-7.7%
18.3%US$201.00US$116.00n/a11
Mar ’25US$169.99
US$155.00
-8.8%
17.0%US$190.00US$116.00n/a11
Feb ’25US$127.63
US$130.50
+2.2%
8.5%US$151.00US$116.00n/a10
Jan ’25US$116.89
US$129.40
+10.7%
8.0%US$151.00US$116.00n/a10
Dec ’24US$119.88
US$129.60
+8.1%
8.0%US$151.00US$116.00n/a10
Nov ’24US$114.85
US$117.18
+2.0%
5.6%US$127.00US$105.00US$258.1011
Oct ’24US$109.08
US$110.91
+1.7%
7.2%US$125.00US$97.00US$265.6111
Sep ’24US$107.29
US$109.36
+1.9%
7.0%US$125.00US$97.00US$196.7011
Aug ’24US$96.30
US$102.09
+6.0%
8.6%US$120.00US$90.00US$177.5711
Jul ’24US$91.55
US$100.00
+9.2%
8.5%US$120.00US$90.00US$205.0511
Jun ’24US$88.88
US$99.73
+12.2%
7.1%US$115.00US$91.00US$217.2511
May ’24US$77.05
US$97.58
+26.6%
8.7%US$115.00US$81.00US$184.5612
Apr ’24US$78.50
US$99.17
+26.3%
8.1%US$115.00US$88.00US$185.9812
Mar ’24US$74.35
US$97.77
+31.5%
8.9%US$115.00US$83.00US$169.9913
Feb ’24US$85.41
US$99.92
+17.0%
7.0%US$115.00US$91.00US$127.6313
Jan ’24US$86.21
US$101.31
+17.5%
7.9%US$121.00US$88.00US$116.8913
Dec ’23US$94.47
US$97.86
+3.6%
14.6%US$121.00US$54.00US$119.8814
Nov ’23US$95.52
US$95.07
-0.5%
15.8%US$121.00US$54.00US$114.8514

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

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