MGE Energy, Inc.

NasdaqGS:MGEE Stock Report

Market Cap: US$3.8b

MGE Energy Valuation

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

Below Fair Value: MGEE ($103.89) is trading below our estimate of fair value ($570.95)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MGEE. This is calculated by dividing MGEE's market cap by their current earnings.
What is MGEE's PE Ratio?
PE Ratio31.7x
EarningsUS$118.63m
Market CapUS$3.78b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MGEE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.6x
TXNM TXNM Energy
24.4x12.8%US$4.3b
ALE ALLETE
20.7x15.1%US$3.7b
OTTR Otter Tail
10.9x-17.3%US$3.3b
POR Portland General Electric
14.4x7.4%US$4.9b
MGEE MGE Energy
31.7xn/aUS$3.8b

Price-To-Earnings vs Peers: MGEE is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the peer average (17.6x).

Price to Earnings Ratio vs Industry

How does MGEE'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
MGEE 31.7xIndustry Avg. 21.0xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MGEE is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the US Electric Utilities industry average (21x).

Price to Earnings Ratio vs Fair Ratio

What is MGEE'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.

MGEE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MGEE'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.

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