We’ve recently updated our valuation analysis.

WEC Energy Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 WEC?

Other financial metrics that can be useful for relative valuation.

WEC 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/Revenue5.1x
Enterprise Value/EBITDA14.9x
PEG Ratio3.8x

Price to Earnings Ratio vs Peers

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

WEC PE Ratio vs Peers
The above table shows the PE ratio for WEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.8x
ED Consolidated Edison
19.9x7.6%US$32.2b
AEE Ameren
21.8x8.5%US$22.0b
DTE DTE Energy
29.9x10.3%US$23.6b
CMS CMS Energy
23.4x9.0%US$17.9b
WEC WEC Energy Group
21.9x5.7%US$29.9b

Price-To-Earnings vs Peers: WEC is good value based on its Price-To-Earnings Ratio (21.9x) compared to the peer average (23.8x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: WEC is expensive based on its Price-To-Earnings Ratio (21.9x) compared to the Global Integrated Utilities industry average (16.6x)


Price to Earnings Ratio vs Fair Ratio

What is WEC'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.

WEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.9x
Fair PE Ratio22.8x

Price-To-Earnings vs Fair Ratio: WEC is good value based on its Price-To-Earnings Ratio (21.9x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).


Share Price vs Fair Value

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

Below Fair Value: WEC ($94.77) is trading above our estimate of fair value ($78.41)

Significantly Below Fair Value: WEC 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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