uploads///nrg stk

What’s NRG Energy’s Current Valuation?


Nov. 20 2020, Updated 3:26 p.m. ET


NRG Energy (NRG) stock was trading at an EV-to-EBITDA valuation of 13x—higher than its five-year historical valuation. On average, utilities are trading at an EV-to-EBITDA valuation of ~10.5x. NRG Energy seems to be trading at a fair premium compared to its peers and historical valuation.

It should be noted that utilities (XLU) (IDU) are still trading at a premium after their recent fall. However, they seem relatively cheaper compared to their valuation late last year.

As we mentioned earlier, NRG Energy stock rose more than 130% last year. Involvement of activist shareholders and the transformation plan fueled NRG Energy’s rally in 2017.

To learn what’s behind utilities’ recent weakness, read How Utilities Stocks Performed Last Week.

Article continues below advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.