CenterPoint Energy (CNP) stock is presently trading at a PE (price-to-earnings) multiple of 16x, lower than its historical average. Its EV-to-EBITDA multiple is 9x, similar to its five-year average. Vectren (VVC), trading close to its 52-week high, has a PE multiple of 34x, and its EV-to-EBITDA multiple is 14x.
CenterPoint Energy stock has fallen more than 10% this year, while Vectren has rallied almost 10%. The Utilities Select Sector SPDR ETF (XLU), which tracks the S&P 500 Utilities, has fallen marginally.
Top utilities’ valuation
Duke Energy (DUK), the second-largest utility by market capitalization, is trading at a PE multiple of 21.0x, while Dominion Energy’s (D) multiple is 20x. NextEra Energy (NEE) is trading at a PE multiple of 22x. Dominion Energy and NextEra Energy are some of the fastest-growing utilities in the sector. To learn more, read NextEra Energy and Dominion Energy: How Do They Stack Up?