We’ve recently updated our valuation analysis.

Xcel Energy Valuation

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

[object Object] Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

XEL 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/Revenue4.3x
Enterprise Value/EBITDA13.2x
PEG Ratio3.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for XEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.4x
PCG PG&E
17.7x11.8%US$31.1b
EXC Exelon
19.2x7.4%US$41.2b
ES Eversource Energy
21x7.9%US$29.2b
AEP American Electric Power Company
19.9x8.5%US$48.9b
XEL Xcel Energy
22.6x6.5%US$37.8b

Price-To-Earnings vs Peers: XEL is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the peer average (19.4x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.7%
n/an/an/a

Price-To-Earnings vs Industry: XEL is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the US Electric Utilities industry average (19.2x)


Price to Earnings Ratio vs Fair Ratio

What is XEL'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.

XEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.6x
Fair PE Ratio22.8x

Price-To-Earnings vs Fair Ratio: XEL is good value based on its Price-To-Earnings Ratio (22.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).


Share Price vs Fair Value

What is the Fair Price of XEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: XEL ($69.14) is trading below our estimate of fair value ($254.14)

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


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 XEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$69.14
US$69.13
-0.01%
6.9%US$77.00US$58.00n/a15
Nov ’23US$65.90
US$67.60
+2.6%
7.9%US$77.00US$58.00n/a15
Oct ’23US$64.00
US$75.50
+18.0%
8.0%US$86.00US$58.00n/a14
Sep ’23US$75.42
US$75.57
+0.2%
8.0%US$86.00US$58.00n/a14
Aug ’23US$73.19
US$74.21
+1.4%
7.8%US$79.00US$57.00n/a14
Jul ’23US$72.63
US$75.25
+3.6%
8.9%US$83.00US$57.00n/a16
Jun ’23US$75.12
US$76.13
+1.3%
8.0%US$83.00US$57.00n/a16
May ’23US$73.26
US$76.75
+4.8%
8.2%US$84.00US$57.00n/a16
Apr ’23US$72.75
US$72.67
-0.1%
7.0%US$79.00US$57.00n/a15
Mar ’23US$66.51
US$72.13
+8.5%
7.5%US$78.00US$56.00n/a15
Feb ’23US$68.49
US$72.33
+5.6%
7.2%US$78.00US$56.00n/a15
Jan ’23US$67.70
US$70.60
+4.3%
7.0%US$76.00US$56.00n/a15
Dec ’22US$64.21
US$70.13
+9.2%
7.6%US$76.00US$55.00US$70.1915
Nov ’22US$64.50
US$70.47
+9.3%
7.3%US$76.00US$55.00US$65.9015
Oct ’22US$62.49
US$71.07
+13.7%
7.9%US$80.00US$54.00US$64.0015
Sep ’22US$69.75
US$71.07
+1.9%
7.7%US$80.00US$54.00US$75.4215
Aug ’22US$68.25
US$70.07
+2.7%
7.8%US$76.00US$54.00US$73.1915
Jul ’22US$67.03
US$70.33
+4.9%
8.2%US$76.00US$53.00US$72.6315
Jun ’22US$70.00
US$70.33
+0.5%
8.3%US$76.00US$53.00US$75.1215
May ’22US$71.30
US$69.87
-2.0%
8.5%US$76.00US$52.00US$73.2615
Apr ’22US$66.79
US$67.53
+1.1%
8.1%US$74.00US$52.00US$72.7515
Mar ’22US$59.15
US$68.20
+15.3%
10.1%US$82.00US$52.00US$66.5115
Feb ’22US$63.94
US$68.60
+7.3%
9.7%US$82.00US$52.00US$68.4915
Jan ’22US$66.67
US$70.67
+6.0%
9.8%US$82.00US$51.00US$67.7015
Dec ’21US$68.41
US$71.00
+3.8%
9.3%US$82.00US$51.00US$64.2115

Analyst Forecast: Target price is lower than the current share price.


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