Regulated Electric · NYSE
Current Price
$48.94
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on FirstEnergy Corp. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities. It operates 24,074 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 273,295 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.
ROIC (TTM)
58.8%
ROE (TTM)
8.4%
FCF Yield
10.77%
Based on trailing twelve-month data, FE shows a free cash flow per share of N/A and a ROIC of 58.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 10.77% are important context metrics when evaluating FE's stock valuation relative to peers.
The intrinsic value of FE 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 FE is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $48.94. 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 FirstEnergy Corp.: (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 FE'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 FirstEnergy Corp., 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. FE's ROIC of 58.8% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For FE, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
