CenterPoint Energy, Inc.

NYSE:CNP Stock Report

Market Cap: US$20.7b

CenterPoint Energy Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: CNP ($31.44) is trading above our estimate of fair value ($27.42)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CNP. This is calculated by dividing CNP's market cap by their current earnings.
What is CNP's PE Ratio?
PE Ratio21.3x
EarningsUS$963.00m
Market CapUS$20.67b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CNP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.2x
CMS CMS Energy
19x8.0%US$20.0b
NI NiSource
22.3x11.8%US$16.9b
AEE Ameren
20.5x9.7%US$23.7b
WEC WEC Energy Group
23.2x11.2%US$30.0b
CNP CenterPoint Energy
21.3x10.1%US$20.7b

Price-To-Earnings vs Peers: CNP is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (21.1x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CNP 21.3xIndustry Avg. 16.9xNo. of Companies9PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CNP is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the Global Integrated Utilities industry average (16.9x).

Price to Earnings Ratio vs Fair Ratio

What is CNP'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.

CNP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.3x
Fair PE Ratio21x

Price-To-Earnings vs Fair Ratio: CNP is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the estimated Fair Price-To-Earnings Ratio (21x).

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 CNP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$31.44
US$32.11
+2.1%
7.0%US$37.00US$29.00n/a17
Dec ’25US$32.62
US$31.28
-4.1%
5.1%US$34.00US$29.00n/a16
Nov ’25US$28.58
US$30.78
+7.7%
4.4%US$33.00US$29.00n/a16
Oct ’25US$29.89
US$29.70
-0.6%
5.7%US$34.00US$28.00n/a16
Sep ’25US$27.30
US$29.61
+8.5%
5.5%US$34.00US$28.00n/a15
Aug ’25US$28.15
US$30.89
+9.7%
4.4%US$34.00US$29.00n/a16
Jul ’25US$30.55
US$31.01
+1.5%
5.0%US$34.00US$29.00n/a16
Jun ’25US$30.51
US$31.01
+1.6%
4.7%US$34.00US$29.00n/a16
May ’25US$29.32
US$30.76
+4.9%
4.7%US$34.00US$29.00n/a16
Apr ’25US$28.42
US$30.66
+7.9%
4.6%US$34.00US$28.00n/a17
Mar ’25US$27.44
US$30.50
+11.1%
4.9%US$34.00US$28.00n/a17
Feb ’25US$28.38
US$30.61
+7.9%
5.2%US$34.00US$28.00n/a17
Jan ’25US$28.57
US$30.19
+5.7%
5.4%US$34.00US$27.00n/a16
Dec ’24US$28.79
US$30.25
+5.1%
6.3%US$34.00US$27.00US$32.6216
Nov ’24US$27.32
US$30.31
+11.0%
6.0%US$34.00US$27.00US$28.5816
Oct ’24US$26.85
US$32.00
+19.2%
6.6%US$34.00US$28.00US$29.8915
Sep ’24US$27.65
US$32.27
+16.7%
6.0%US$34.00US$28.00US$27.3015
Aug ’24US$29.49
US$32.50
+10.2%
4.9%US$34.00US$29.00US$28.1514
Jul ’24US$29.15
US$31.93
+9.5%
4.9%US$35.00US$29.00US$30.5514
Jun ’24US$28.38
US$32.29
+13.8%
4.9%US$35.00US$29.00US$30.5114
May ’24US$30.68
US$32.29
+5.2%
4.9%US$35.00US$29.00US$29.3214
Apr ’24US$29.46
US$31.50
+6.9%
4.8%US$33.00US$28.00US$28.4214
Mar ’24US$27.36
US$31.87
+16.5%
4.3%US$34.00US$29.00US$27.4415
Feb ’24US$30.10
US$32.00
+6.3%
4.7%US$35.00US$29.00US$28.3815
Jan ’24US$29.99
US$31.69
+5.7%
5.8%US$35.00US$29.00US$28.5716
Dec ’23US$31.03
US$31.13
+0.3%
4.9%US$34.00US$29.00US$28.7916

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 22:31
End of Day Share Price 2024/12/18 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

CenterPoint Energy, Inc. is covered by 35 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Gary HovisArgus Research Company
Nicholas CampanellaBarclays
Daniel FordBarclays