What’s NRG Energy’s Current Valuation?




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.

nrg stk

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.

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