We’ve recently updated our valuation analysis.

NextEra Energy Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 NEE?

Other financial metrics that can be useful for relative valuation.

NEE 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/Revenue13.2x
Enterprise Value/EBITDA35x
PEG Ratio4.3x

Price to Earnings Ratio vs Peers

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

NEE PE Ratio vs Peers
The above table shows the PE ratio for NEE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.3x
DUK Duke Energy
20.2x7.4%US$76.7b
SO Southern
25.5x7.8%US$77.1b
AEP American Electric Power Company
18.7x7.8%US$48.1b
EXC Exelon
20.8x8.6%US$39.4b
NEE NextEra Energy
62.7x14.5%US$161.8b

Price-To-Earnings vs Peers: NEE is expensive based on its Price-To-Earnings Ratio (62.7x) compared to the peer average (21.3x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: NEE is expensive based on its Price-To-Earnings Ratio (62.7x) compared to the US Electric Utilities industry average (18.7x)


Price to Earnings Ratio vs Fair Ratio

What is NEE'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.

NEE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio62.7x
Fair PE Ratio30.4x

Price-To-Earnings vs Fair Ratio: NEE is expensive based on its Price-To-Earnings Ratio (62.7x) compared to the estimated Fair Price-To-Earnings Ratio (30.4x).


Share Price vs Fair Value

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

Below Fair Value: NEE ($82.37) is trading above our estimate of fair value ($57.91)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

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


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