Current Price
$44.15
PE Ratio (TTM)
22.4x
Intrinsic Value
$52.56
+16.0% margin of safety
COMPETITIVE MOAT
↑Regulated Monopoly Infrastructure
NiSource operates essential gas distribution networks, granting it a de facto monopoly in its service territories. High capital costs create significant barriers to entry for potential competitors.
↑Essential Service Demand
Natural gas is a critical utility for heating and industrial processes, ensuring consistent demand regardless of economic cycles. This inelastic demand provides revenue stability.
↑Long-Term Customer Relationships
Customers have high switching costs due to the embedded nature of gas infrastructure. This fosters long-term customer retention and predictable revenue streams.
INVESTMENT RISKS
↓Storm Recovery and Infrastructure Investment
Severe weather events necessitate significant capital expenditures for repairs and upgrades. These costs can strain financial resources and impact earnings.
↓Data Center Growth and Energy Demand
While data centers offer growth opportunities, their high energy consumption creates strain on existing infrastructure. Managing this demand requires substantial investment.
↓Interest Rate Sensitivity
As a capital-intensive utility, NiSource relies on debt financing. Rising interest rates increase borrowing costs, potentially impacting profitability and dividend sustainability.
Base case
NI base case PE valuation
At a current price of $44.15, the base case PE valuation puts NI fair value near $52.56 per share. That figure assumes 9.4% yearly earnings growth, a target PE multiple of 22.53x, and a 10% discount rate.
Intrinsic Value
$52.56
Margin of safety
+16.0%
Expected annual return
+3.5%
Base case assumptions: 9.4% annual earnings growth, 22.53x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
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 NI PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for NiSource Inc respond.
Open PE Calculator for NICompany Overview
NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Columbia Operations and NIPSCO Operations. The company provides natural gas to residential, commercial, and industrial customers through approximately 37,300 miles of distribution main pipeline and the associated individual customer service lines; and 310 miles of transmission main pipeline in Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates steam coal generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County; and solar generating units in Sullivan County, Gibson County, Jasper County, and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.
Financial Metrics — NI PE Stock Valuation Data
PE Ratio (TTM)
22.4x
PEG Ratio
7.13
Earnings Yield
4.44%
ROE (TTM)
9.8%
Revenue/Share (TTM)
$14.50
Dividend Yield
2.67%
Debt/Equity
1.83x
Frequently Asked Questions
What is the PE ratio of NI?
The trailing twelve-month PE ratio of NI reflects how much investors pay per dollar of NiSource Inc's earnings. This metric is most useful when compared to Regulated Gas peers and the company's own historical range.
Is NI overvalued based on PE ratio?
NI's PE of 22.4x combined with a PEG ratio of 7.13 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high 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 Gas, a DCF analysis may be more appropriate.
How do I value NI stock using PE ratio?
To value NiSource Inc using PE: (1) Compare the current PE (22.4x) against the Regulated Gas median to assess relative pricing, (2) check the PEG ratio (7.13) 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 NI?
NI's PEG ratio is 7.13, calculated by dividing the PE ratio (22.4x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high 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 NI stock valuation?
PE ratio gives a quick relative read — how NI is priced versus Regulated Gas 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 NI 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 NI with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.