Entergy Corporation (ETR) Stock Valuation — PE Analysis
Regulated Electric · NYSE
Current Price
$111.11
PE Ratio (TTM)
28.1x
Intrinsic Value
$149.17
+25.5% margin of safety
COMPETITIVE MOAT
↑Regulated Monopoly Power
Entergy operates as a regulated utility, granting it exclusive rights to serve specific geographic areas. This regulatory structure creates a natural monopoly, limiting direct competition.
↑Essential Service Infrastructure
The company owns and maintains critical electricity generation and distribution infrastructure. Replacing this extensive network would be prohibitively expensive and time-consuming for any competitor.
↑Long-Term Customer Relationships
As a provider of an essential service, Entergy has established long-standing relationships with its customer base. Switching costs for customers are high, fostering customer stickiness.
INVESTMENT RISKS
↓Regulatory Uncertainty
Changes in state and federal regulations can impact Entergy's pricing, operational costs, and investment plans. Adverse regulatory decisions could significantly affect profitability.
↓Capital Intensity and Debt
The utility sector requires substantial capital investment for infrastructure maintenance and upgrades. High debt levels can increase financial risk, especially during periods of rising interest rates.
↓Environmental and Climate Risks
Entergy faces risks associated with extreme weather events and the transition to cleaner energy sources. Investments in grid resilience and renewable energy are necessary but costly.
Base case
ETR base case PE valuation
A base case PE valuation for ETR estimates a fair value of about $149.17 per share, against a current price of $111.11. The model assumes 13.2% annual earnings growth, a 28x target PE multiple, and a 10% discount rate.
Intrinsic Value
$149.17
Margin of safety
+25.5%
Expected annual return
+6.1%
Base case assumptions: 13.2% annual earnings growth, 28x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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 ETR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Entergy Corporation respond.
Open PE Calculator for ETRCompany Overview
Entergy Corporation, headquartered in New Orleans, Louisiana, is a prominent American energy company primarily involved in generating and distributing electricity across the United States. Its operations are divided into two main divisions: Utility and Entergy Wholesale Commodities. The Utility division manages the end-to-end process of generating, transmitting, distributing, and selling electricity. This service covers specific regions of Arkansas, Louisiana, Mississippi, and Texas, including the metropolitan area of New Orleans, providing electricity to 3 million utility customers in these states. Additionally, this segment handles natural gas distribution. In contrast, the Entergy Wholesale Commodities division focuses on the ownership, operation, and decommissioning of nuclear power facilities. It also holds stakes in various non-nuclear power plants, selling their output to wholesale clients, and offers specialized services to other nuclear power plant operators. Entergy's electricity generation portfolio is diverse, utilizing natural gas, nuclear, coal, hydroelectric, and solar power. Collectively, its power plants boast an approximate generating capacity of 26,000 megawatts (MW), with 6,000 MW specifically from nuclear sources. Beyond its direct utility customers, Entergy also supplies energy to a range of wholesale clients, including other retail power providers, utility companies, electric power cooperatives, energy trading organizations, and fellow power generation firms. The company has a long history, established in 1913.
Financial Metrics — ETR PE Stock Valuation Data
PE Ratio (TTM)
28.1x
PEG Ratio
1.03
Earnings Yield
3.56%
ROE (TTM)
10.6%
Revenue/Share (TTM)
$29.16
Dividend Yield
2.27%
Debt/Equity
1.96x
Frequently Asked Questions
What is the PE ratio of ETR?
The trailing twelve-month PE ratio of ETR reflects how much investors pay per dollar of Entergy Corporation's earnings. This metric is most useful when compared to Regulated Electric peers and the company's own historical range.
Is ETR overvalued based on PE ratio?
ETR's PE of 28.1x combined with a PEG ratio of 1.03 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by 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 ETR stock using PE ratio?
To value Entergy Corporation using PE: (1) Compare the current PE (28.1x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (1.03) 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 ETR?
ETR's PEG ratio is 1.03, calculated by dividing the PE ratio (28.1x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ETR stock valuation?
PE ratio gives a quick relative read — how ETR 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 ETR 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 ETR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.