Eversource Energy (ES) Stock Valuation — PE Analysis
Regulated Electric · NYSE
Current Price
$68.52
PE Ratio (TTM)
17.8x
Intrinsic Value
$73.91
+7.3% margin of safety
COMPETITIVE MOAT
↑Regulated Rate Base Growth
Eversource benefits from a large, regulated rate base that provides predictable revenue streams. Significant investments in grid modernization are expanding this base, supporting long-term earnings growth.
↑Essential Service Monopoly
As a regulated utility, Eversource holds a de facto monopoly in its service territories. This prevents direct competition for electricity and gas distribution to millions of customers.
↑High Capital Intensity Barrier
The immense capital required to build and maintain energy infrastructure creates a substantial barrier to entry for potential competitors. This protects Eversource's existing market position.
INVESTMENT RISKS
↓Execution of Grid Modernization
The success of Eversource's substantial investment plan hinges on effective execution of grid modernization projects. Delays or cost overruns could impact projected growth and earnings.
↓Interest Rate Sensitivity
Utilities often carry significant debt. Rising interest rates can increase financing costs, impacting profitability and the affordability of new capital investments.
↓Extreme Weather Events
Eversource's infrastructure is vulnerable to damage from severe weather. Significant storm events can lead to costly repairs, service disruptions, and reputational damage.
Base case
ES base case PE valuation
A base case PE valuation for ES estimates a fair value of about $73.91 per share, against a current price of $68.52. The model assumes 5.9% annual earnings growth, a 17.8x target PE multiple, and a 10% discount rate.
Intrinsic Value
$73.91
Margin of safety
+7.3%
Expected annual return
+1.5%
Base case assumptions: 5.9% annual earnings growth, 17.8x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
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 ES PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Eversource Energy respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
17.8x
PEG Ratio
0.27
Earnings Yield
5.62%
ROE (TTM)
8.9%
Revenue/Share (TTM)
$37.18
Dividend Yield
4.50%
Debt/Equity
1.82x
Frequently Asked Questions
What is the PE ratio of ES?
The trailing twelve-month PE ratio of ES reflects how much investors pay per dollar of Eversource Energy's earnings. This metric is most useful when compared to Regulated Electric peers and the company's own historical range.
Is ES overvalued based on PE ratio?
ES's PE of 17.8x combined with a PEG ratio of 0.27 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. 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 ES stock using PE ratio?
To value Eversource Energy using PE: (1) Compare the current PE (17.8x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (0.27) 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 ES?
ES's PEG ratio is 0.27, calculated by dividing the PE ratio (17.8x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ES stock valuation?
PE ratio gives a quick relative read — how ES 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 ES 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 ES with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.