NextEra Energy Partners, LP

NYSE:NEP Stock Report

Market Cap: US$1.6b

NextEra Energy Partners Valuation

Is NEP 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: NEP ($17.61) is trading below our estimate of fair value ($70.18)

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

Key Valuation Metric

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

Key metric: As NEP is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NEP. This is calculated by dividing NEP's market cap by their current revenue.
What is NEP's PS Ratio?
PS Ratio1.4x
SalesUS$1.17b
Market CapUS$1.65b

Price to Sales Ratio vs Peers

How does NEP's PS Ratio compare to its peers?

The above table shows the PS ratio for NEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3x
RNW ReNew Energy Global
2.5x22.1%US$2.5b
ORA Ormat Technologies
4.6x8.4%US$4.1b
MNTK Montauk Renewables
2.7x16.3%US$534.9m
CWEN.A Clearway Energy
2.1x6.2%US$5.1b
NEP NextEra Energy Partners
1.4x5.1%US$1.6b

Price-To-Sales vs Peers: NEP is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (3x).

Price to Sales Ratio vs Industry

How does NEP's PS Ratio compare vs other companies in the US Renewable Energy Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
AZRE.F Azure Power Global
0.2xn/aUS$48.12m
No more companies available in this PS range
NEP 1.4xIndustry Avg. 2.2xNo. of Companies5PS0246810+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NEP is good value based on its Price-To-Sales Ratio (1.4x) compared to the North American Renewable Energy industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is NEP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NEP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio2.9x

Price-To-Sales vs Fair Ratio: NEP is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (2.9x).

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 NEP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$17.61
US$21.80
+23.8%
27.4%US$33.00US$10.00n/a15
Dec ’25US$17.47
US$23.27
+33.2%
22.4%US$33.00US$14.00n/a15
Nov ’25US$19.25
US$23.94
+24.4%
22.2%US$33.00US$14.00n/a16
Oct ’25US$26.96
US$27.38
+1.5%
22.6%US$37.00US$15.00n/a16
Sep ’25US$25.05
US$28.29
+12.9%
20.0%US$37.00US$15.00n/a14
Aug ’25US$26.34
US$28.29
+7.4%
20.0%US$37.00US$15.00n/a14
Jul ’25US$25.21
US$31.69
+25.7%
21.9%US$45.00US$15.00n/a16
Jun ’25US$33.71
US$34.41
+2.1%
28.9%US$64.00US$15.00n/a17
May ’25US$28.61
US$34.41
+20.3%
28.9%US$64.00US$15.00n/a17
Apr ’25US$29.62
US$34.88
+17.8%
30.3%US$64.00US$15.00n/a17
Mar ’25US$28.35
US$35.13
+23.9%
30.9%US$64.00US$15.00n/a16
Feb ’25US$31.47
US$34.63
+10.1%
31.6%US$64.00US$15.50n/a15
Jan ’25US$30.41
US$33.63
+10.6%
34.5%US$64.00US$15.50n/a15
Dec ’24US$25.41
US$34.77
+36.8%
33.5%US$64.00US$15.50US$17.4715
Nov ’24US$27.21
US$36.14
+32.8%
29.9%US$64.00US$22.00US$19.2514
Oct ’24US$29.70
US$55.79
+87.8%
22.7%US$80.00US$38.00US$26.9614
Sep ’24US$49.10
US$75.13
+53.0%
11.7%US$86.00US$60.00US$25.0515
Aug ’24US$53.40
US$76.64
+43.5%
9.7%US$86.00US$60.00US$26.3414
Jul ’24US$58.64
US$77.43
+32.0%
10.4%US$90.00US$60.00US$25.2114
Jun ’24US$61.40
US$77.79
+26.7%
10.7%US$90.00US$60.00US$33.7114
May ’24US$55.89
US$79.53
+42.3%
12.4%US$94.00US$53.00US$28.6115
Apr ’24US$60.75
US$84.94
+39.8%
6.7%US$95.00US$70.00US$29.6216
Mar ’24US$65.32
US$85.88
+31.5%
7.3%US$95.00US$70.00US$28.3516
Feb ’24US$72.45
US$85.88
+18.5%
7.3%US$95.00US$70.00US$31.4716
Jan ’24US$70.09
US$84.93
+21.2%
6.9%US$95.00US$70.00US$30.4115
Dec ’23US$79.68
US$85.25
+7.0%
6.8%US$95.00US$70.00US$25.4116

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 03:22
End of Day Share Price 2024/12/20 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

NextEra Energy Partners, LP is covered by 40 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael MorosiAvondale Partners
David ParkerBaird
Daniel FordBarclays