Regulated Electric · NYSE
Current Price
$68.72
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Eversource Energy with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for ESEversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 226,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy is based in Springfield, Massachusetts.
ROIC (TTM)
4.7%
ROE (TTM)
10.7%
FCF Yield
-0.17%
Based on trailing twelve-month data, ES shows a free cash flow per share of N/A and a ROIC of 4.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -0.17% are important context metrics when evaluating ES's stock valuation relative to peers.
The intrinsic value of ES depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether ES is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $68.72. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Eversource Energy: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Regulated Electric industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ES's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Eversource Energy, this means projecting how much free cash flow the Regulated Electric will produce over the next 5-10 years, then discounting those amounts to today's dollars. ES's ROIC of 4.7% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ES, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
