Entergy Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: ETR ($105.68) is trading below our estimate of fair value ($133.15)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ETR 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/Revenue4x
Enterprise Value/EBITDA10.4x
PEG Ratio-140.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ETR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
FE FirstEnergy
19.8x10.7%US$22.1b
EIX Edison International
22.7x13.8%US$26.7b
XEL Xcel Energy
16.8x9.3%US$29.6b
PPL PPL
27.5x11.9%US$20.2b
ETR Entergy
9.6x-0.07%US$22.4b

Price-To-Earnings vs Peers: ETR is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (21.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ETR is good value based on its Price-To-Earnings Ratio (9.6x) compared to the US Electric Utilities industry average (17.9x).


Price to Earnings Ratio vs Fair Ratio

What is ETR'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.

ETR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ratio16.8x

Price-To-Earnings vs Fair Ratio: ETR is good value based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (16.8x).


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 ETR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$105.68
US$111.98
+6.0%
6.4%US$123.00US$94.00n/a19
Mar ’25US$100.47
US$111.19
+10.7%
6.3%US$123.00US$94.00n/a19
Feb ’25US$101.99
US$110.55
+8.4%
6.1%US$121.00US$97.00n/a19
Jan ’25US$101.19
US$108.82
+7.5%
6.9%US$121.00US$96.00n/a19
Dec ’24US$102.03
US$107.92
+5.8%
7.5%US$121.00US$94.00n/a19
Nov ’24US$97.74
US$105.75
+8.2%
8.2%US$120.00US$92.00n/a18
Oct ’24US$92.50
US$112.03
+21.1%
7.9%US$125.00US$96.00n/a16
Sep ’24US$94.34
US$113.22
+20.0%
9.0%US$126.00US$94.00n/a16
Aug ’24US$101.17
US$116.07
+14.7%
7.8%US$130.00US$96.00n/a15
Jul ’24US$97.37
US$116.81
+20.0%
7.8%US$130.00US$96.00n/a16
Jun ’24US$97.38
US$118.56
+21.8%
8.1%US$134.00US$96.00n/a16
May ’24US$107.41
US$120.50
+12.2%
5.6%US$134.00US$106.00n/a16
Apr ’24US$107.74
US$120.80
+12.1%
6.8%US$131.00US$97.00n/a15
Mar ’24US$101.42
US$121.63
+19.9%
6.6%US$138.00US$103.00US$100.4716
Feb ’24US$109.21
US$122.00
+11.7%
6.6%US$138.00US$108.00US$101.9916
Jan ’24US$112.50
US$123.44
+9.7%
6.9%US$140.00US$110.00US$101.1916
Dec ’23US$116.30
US$120.29
+3.4%
6.2%US$135.00US$103.00US$102.0317
Nov ’23US$108.32
US$119.18
+10.0%
8.0%US$135.00US$96.00US$97.7417
Oct ’23US$100.63
US$128.65
+27.8%
5.8%US$144.00US$115.00US$92.5017
Sep ’23US$117.02
US$128.18
+9.5%
5.8%US$144.00US$115.00US$94.3417
Aug ’23US$115.41
US$124.06
+7.5%
5.6%US$132.00US$106.00US$101.1717
Jul ’23US$115.30
US$123.00
+6.7%
7.2%US$139.00US$99.00US$97.3717
Jun ’23US$120.18
US$128.00
+6.5%
6.3%US$139.00US$111.00US$97.3817
May ’23US$118.85
US$128.59
+8.2%
6.4%US$145.00US$112.00US$107.4117
Apr ’23US$120.09
US$121.00
+0.8%
5.8%US$133.00US$106.00US$107.7416
Mar ’23US$103.86
US$119.91
+15.4%
6.2%US$131.00US$100.00US$101.4216

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


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