uploads///NEE stk

NextEra Energy’s Stock Valuation Compared to Peers


Mar. 7 2018, Updated 12:45 p.m. ET


The Florida-based NextEra Energy’s (NEE) stock is currently trading at a price-to-earnings (or PE) multiple of 21.0x. It has a five-year historical average 20x. The average PE multiple for utilities is around 13.0x. So, NEE seems to be trading at a premium to peers as well as its historical average.

Peer Dominion Energy (D) stock is trading at a valuation multiple of 22x. Duke Energy’s (DUK) valuation multiple is 21.0x.

Article continues below advertisement

NextEra Energy stock is presently trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple of 14.5x. It has a five-year historical average near 13.0x. The average EV-to-EBITDA multiple for utilities is 11.0x. So, based on EV-to-EBITDA multiple as well, NEE seems to be trading at a premium to both its historical average and the industry average (XLU).

Let’s move on to NRG Energy next in this series.


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.