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FirstEnergy Stock Looks Attractively Valued Compared to Peers

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Nov. 20 2020, Updated 4:28 p.m. ET

FirstEnergy: Valuation

FirstEnergy (FE) stock is currently trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple of 8.0x, which is lower than its five-year historical average of 9.0x.

In comparison, the largest US competitive utility, Exelon (EXC), is currently trading at an EV-to-EBITDA ratio of 8.0x, which is higher than its five-year historical average of 7.0x. Public Service Enterprise Group (PEG) stock, which looks expensive compared to its peers, is trading at a valuation ratio of 11.2x, which is higher than its five-year average of 9.0x.

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A look at its peers

Renewables titan NextEra Energy (NEE) is currently trading at an EV-to-EBITDA valuation of 15.0x, while its five-year historical average valuation is 12.0x. So it appears to be trading at a premium to its historical average.

Dominion Energy (D) stock is trading at an EV-to-EBITDA multiple of 13.5x, and its historical average is ~14.0x. So Dominion seems to be trading at a cheaper valuation than its historical average valuation.

Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data, as well as dividend information. Take a look!

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