WEC Energy Group, Inc. (WEC) Stock Valuation — PE Analysis
Regulated Electric · NYSE
Current Price
$106.01
PE Ratio (TTM)
20.4x
Intrinsic Value
$120.27
+11.9% margin of safety
COMPETITIVE MOAT
↑Regulated Monopoly Infrastructure
WEC operates as a regulated utility, granting it exclusive rights to provide electricity and gas services within its service territories. This creates a natural monopoly.
↑High Capital Intensity
The significant investment required to build and maintain energy infrastructure creates a substantial barrier to entry for potential competitors. This deters new entrants.
↑Essential Service Demand
Electricity and natural gas are fundamental necessities for homes and businesses. This ensures a consistent and inelastic demand for WEC's services.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a capital-intensive utility, WEC relies heavily on debt financing. Rising interest rates increase borrowing costs, potentially impacting earnings and dividend sustainability.
↓Cybersecurity Threats
The critical nature of energy infrastructure makes WEC a target for cyberattacks. A successful breach could disrupt operations and lead to significant financial and reputational damage.
↓Extreme Weather Events
Severe weather can damage infrastructure, leading to service disruptions and costly repairs. This can negatively impact operational efficiency and customer satisfaction.
Base case
WEC base case PE valuation
At a current price of $106.01, the base case PE valuation puts WEC fair value near $120.27 per share. That figure assumes 7.8% yearly earnings growth, a target PE multiple of 20.43x, and a 10% discount rate.
Intrinsic Value
$120.27
Margin of safety
+11.9%
Expected annual return
+2.6%
Base case assumptions: 7.8% annual earnings growth, 20.43x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the WEC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for WEC Energy Group, Inc. respond.
Open PE Calculator for WECCompany Overview
WEC Energy Group, Inc. is a major energy provider operating across the United States, delivering regulated natural gas and electricity, as well as both regulated and non-regulated renewable energy services. The company's operations are divided into six main business segments: Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other. Its electricity generation relies on a diverse portfolio of sources, including coal, natural gas, oil, hydroelectric, wind, solar, and biomass. Beyond power generation, WEC Energy Group also provides electric transmission services, manages retail natural gas distribution, handles natural gas transportation, and is involved in the production, distribution, and sale of steam. As of December 31, 2021, the company's vast infrastructure network included approximately 35,800 miles of overhead electricity distribution lines and 35,600 miles of underground cables. This electrical system was supported by 440 distribution substations and 510,500 line transformers. For natural gas, its network comprised 50,900 miles of distribution mains, 1,200 miles of transmission mains, 2.3 million lateral services, and 500 distribution and transmission gate stations. Furthermore, WEC Energy Group managed 68.2 billion cubic feet of working gas capacity within its underground natural gas storage facilities. The company, founded in 1981, was previously known as Wisconsin Energy Corporation until it officially adopted the name WEC Energy Group, Inc. in June 2015. Its corporate headquarters are located in Milwaukee, Wisconsin.
Financial Metrics — WEC PE Stock Valuation Data
PE Ratio (TTM)
20.4x
PEG Ratio
n/m
Earnings Yield
4.90%
ROE (TTM)
12.2%
Revenue/Share (TTM)
$31.12
Dividend Yield
3.54%
Debt/Equity
1.63x
Frequently Asked Questions
What is the PE ratio of WEC?
The trailing twelve-month PE ratio of WEC reflects how much investors pay per dollar of WEC Energy Group, Inc.'s earnings. This metric is most useful when compared to Regulated Electric peers and the company's own historical range.
Is WEC overvalued based on PE ratio?
WEC's PE of 20.4x combined with a PEG ratio of -26.71 provides a growth-adjusted perspective. WEC has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Regulated Electric, a DCF analysis may be more appropriate.
How do I value WEC stock using PE ratio?
To value WEC Energy Group, Inc. using PE: (1) Compare the current PE (20.4x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (-26.71) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of WEC?
WEC's PEG ratio is -26.71, calculated by dividing the PE ratio (20.4x) by the expected earnings growth rate. Because WEC has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for WEC stock valuation?
PE ratio gives a quick relative read — how WEC is priced versus Regulated Electric peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See WEC DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Utilities valuationsP/E and DCF value WEC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.