WEC Energy Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: WEC ($78.89) is trading below our estimate of fair value ($99.63)

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


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/Revenue5x
Enterprise Value/EBITDA12.8x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does WEC's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.1x
DTE DTE Energy
15.7x6.3%US$22.0b
ED Consolidated Edison
12.3x0.2%US$30.6b
PEG Public Service Enterprise Group
12.7x-0.6%US$32.8b
CMS CMS Energy
19.6x9.0%US$17.2b
WEC WEC Energy Group
18.7x9.1%US$24.9b

Price-To-Earnings vs Peers: WEC is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (15.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: WEC is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the Global Integrated Utilities industry average (15.5x).


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 Ratio18.7x
Fair PE Ratio20.9x

Price-To-Earnings vs Fair Ratio: WEC is good value based on its Price-To-Earnings Ratio (18.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).


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 WEC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$78.89
US$87.09
+10.4%
7.2%US$96.00US$75.00n/a16
Apr ’25US$81.56
US$87.10
+6.8%
7.4%US$96.00US$75.00n/a15
Mar ’25US$78.39
US$86.97
+10.9%
7.4%US$96.00US$75.00n/a15
Feb ’25US$81.78
US$88.33
+8.0%
6.6%US$96.00US$75.00n/a15
Jan ’25US$84.17
US$89.00
+5.7%
5.6%US$96.00US$81.00n/a15
Dec ’24US$84.97
US$88.47
+4.1%
5.6%US$96.00US$81.00n/a15
Nov ’24US$82.56
US$88.93
+7.7%
6.3%US$98.00US$81.00n/a14
Oct ’24US$80.55
US$95.50
+18.6%
7.0%US$105.00US$83.00n/a14
Sep ’24US$83.11
US$97.00
+16.7%
7.4%US$111.00US$83.00n/a12
Aug ’24US$89.61
US$99.09
+10.6%
5.2%US$111.00US$92.00n/a11
Jul ’24US$88.24
US$99.55
+12.8%
5.7%US$111.00US$91.00n/a11
Jun ’24US$86.19
US$101.36
+17.6%
4.4%US$111.00US$96.00n/a11
May ’24US$95.94
US$102.36
+6.7%
4.2%US$111.00US$96.00n/a11
Apr ’24US$94.79
US$101.82
+7.4%
4.2%US$111.00US$96.00US$81.5611
Mar ’24US$86.57
US$101.83
+17.6%
4.6%US$111.00US$94.00US$78.3912
Feb ’24US$94.90
US$101.50
+7.0%
4.8%US$111.00US$94.00US$81.7812
Jan ’24US$93.76
US$98.50
+5.1%
6.9%US$109.00US$85.00US$84.1712
Dec ’23US$97.29
US$96.77
-0.5%
5.6%US$105.00US$85.00US$84.9713
Nov ’23US$91.95
US$94.69
+3.0%
5.7%US$105.00US$85.00US$82.5613
Oct ’23US$89.43
US$105.86
+18.4%
6.9%US$117.00US$93.00US$80.5514
Sep ’23US$104.65
US$105.86
+1.2%
6.9%US$117.00US$93.00US$83.1114
Aug ’23US$103.89
US$103.14
-0.7%
5.8%US$117.00US$93.00US$89.6114
Jul ’23US$102.58
US$105.20
+2.6%
5.8%US$117.00US$93.00US$88.2415
Jun ’23US$104.67
US$105.79
+1.1%
5.3%US$117.00US$94.00US$86.1914
May ’23US$100.05
US$104.63
+4.6%
6.2%US$117.00US$94.00US$95.9414
Apr ’23US$101.13
US$100.31
-0.8%
4.4%US$111.00US$94.00US$94.7913

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


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