Eversource Energy (ES) Stock Valuation — DCF Analysis
Regulated Electric · NYSE
Current Price
$69.57
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑Regulated Monopoly Power
Eversource operates as a regulated utility, granting it exclusive rights to serve specific geographic areas. This creates a natural monopoly, limiting direct competition for its core electricity and gas distribution services.
↑Essential Service Infrastructure
The company owns and maintains critical infrastructure for electricity and gas delivery, which is essential for modern life. Replacing this extensive network would be prohibitively expensive and time-consuming for any competitor.
↑Predictable Revenue Streams
As a regulated utility, Eversource's rates are set by regulatory bodies, leading to stable and predictable revenue. This allows for consistent cash flow, even during economic downturns.
INVESTMENT RISKS
↓Regulatory Scrutiny and Rate Cases
Eversource is subject to strict regulatory oversight, which can impact its ability to raise rates and recover costs. Unfavorable decisions in rate cases can significantly affect profitability.
↓Interest Rate Sensitivity
Utilities often carry significant debt to fund infrastructure investments. Rising interest rates increase borrowing costs, potentially pressuring earnings and dividend payouts.
↓Capital Expenditure Demands
Significant ongoing investment is required to maintain and upgrade aging infrastructure and adapt to new energy technologies. Delays or cost overruns in these projects can strain financial resources.
Base case
ES base case valuation
Base case assumptions: 4.5% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-15.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ES valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Eversource Energy respond.
Open DCF Calculator for ESCompany Overview
Eversource Energy operates as a public utility holding enterprise, with its core operations centered on the provision and delivery of various energy services. Its business activities are segmented into several key areas: the transmission and distribution of electricity, natural gas distribution, and water utility services. The company is actively engaged in moving electricity, including energy generated from solar facilities, and supplying natural gas to its consumers. Additionally, Eversource manages regulated water systems, serving approximately 226,000 customers. It caters to a wide array of clients, spanning residential homes, businesses, industrial operations, municipal entities (including fire protection), and others across the states of Connecticut, Massachusetts, and New Hampshire. The organization, headquartered in Springfield, Massachusetts, adopted the name Eversource Energy in April 2015, having previously been known as Northeast Utilities.
Financial Metrics — ES Stock Valuation Data
Revenue/Share (TTM)
$37.05
FCF/Share (TTM)
$0.63
ROIC (TTM)
4.8%
ROE (TTM)
10.9%
P/FCF
110.5x
EV/EBITDA
10.0x
FCF Yield
0.90%
Debt/Equity
1.84x
Based on trailing twelve-month data, ES shows a free cash flow per share of $0.63 and a ROIC of 4.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 110.5x and FCF yield of 0.90% are important context metrics when evaluating ES's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of ES?
Eversource Energy currently generates $0.63 in free cash flow per share. At the current price of $69.57, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is ES undervalued?
ES trades at a P/FCF ratio of 110.5x with a free cash flow yield of 0.90%. This elevated P/FCF suggests the market is pricing in significant future growth. However, whether ES is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value ES stock using DCF?
To perform a DCF valuation on Eversource Energy: (1) Start with the trailing free cash flow per share ($0.63) 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 — with a debt-to-equity of 1.84x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to ES?
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 company will produce over the next 5-10 years, shaped by Regulated Electric trends, then discounting those amounts to today's dollars. ES's ROIC of 4.8% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect ES stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ES, with a debt-to-equity ratio of 1.84x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 10.0x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See ES PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Utilities valuationsDCF and P/E value ES with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.