Consolidated Edison, Inc. (ED) Stock Valuation — PE Analysis
Regulated Electric · NYSE
Current Price
$107.74
PE Ratio (TTM)
18.1x
Intrinsic Value
$117.83
+8.6% margin of safety
COMPETITIVE MOAT
↑Regulated Monopoly Power
ED operates as a regulated utility, granting it exclusive rights to serve its vast customer base in New York City and Westchester. This regulatory structure creates a significant barrier to entry for competitors.
↑Essential Service Infrastructure
The company owns and maintains critical, long-lived infrastructure for electricity and gas delivery. Replacing this extensive network would be prohibitively expensive and time-consuming for any potential rival.
↑Dividend Aristocrat Status
ED's long history of consistent dividend increases attracts income-focused investors. This reliability fosters customer loyalty and provides a stable funding source for operations and growth.
INVESTMENT RISKS
↓Regulatory Scrutiny and Rate Cases
As a regulated entity, ED is subject to periodic rate reviews by state commissions. Unfavorable decisions could limit its ability to recover costs and achieve desired returns.
↓Aging Infrastructure Modernization
The company faces ongoing challenges and significant capital expenditures to upgrade and maintain its aging infrastructure. Delays or cost overruns in these projects pose a risk.
↓Transition to Renewables
While ED is investing in renewables, the broader energy transition presents uncertainty regarding future energy sources and demand. Adapting to evolving energy policies is crucial.
Base case
ED base case PE valuation
A base case PE valuation for ED estimates a fair value of about $117.83 per share, against a current price of $107.74. The model assumes 6.5% annual earnings growth, a 18x target PE multiple, and a 10% discount rate.
Intrinsic Value
$117.83
Margin of safety
+8.6%
Expected annual return
+1.8%
Base case assumptions: 6.5% annual earnings growth, 18x 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 ED PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Consolidated Edison, Inc. respond.
Open PE Calculator for EDCompany Overview
Consolidated Edison, Inc., through its various subsidiaries, primarily operates in the regulated sectors of electricity, natural gas, and steam distribution across the United States. The company supplies electric power to approximately 3.5 million households and businesses in New York City and Westchester County. It also delivers natural gas to about 1.1 million customers located in Manhattan, the Bronx, specific parts of Queens, and Westchester County, while providing steam services to around 1,555 clients in certain Manhattan areas. Beyond these core regions, Consolidated Edison extends its electricity provision to roughly 300,000 customers in southeastern New York and northern New Jersey, and serves approximately 100,000 natural gas consumers in southeastern New York. Its extensive operational framework encompasses 533 circuit miles of transmission lines and 15 transmission substations. For distribution, it manages 64 substations, 87,564 in-service line transformers, 3,924 pole miles of overhead lines, and 2,291 miles of underground cabling. The natural gas network further includes 4,350 miles of main pipelines and 377,971 service connections. The company also engages in owning, operating, and developing projects for renewable energy and broader energy infrastructure. Furthermore, it offers a range of energy-related products and services to both wholesale and retail markets, and strategically invests in new electric and gas transmission ventures. Its electricity sales are predominantly directed toward industrial, commercial, residential, and governmental clients. Established in 1823, Consolidated Edison's corporate headquarters are situated in New York, New York.
Financial Metrics — ED PE Stock Valuation Data
PE Ratio (TTM)
18.1x
PEG Ratio
1.86
Earnings Yield
5.51%
ROE (TTM)
8.8%
Revenue/Share (TTM)
$47.42
Dividend Yield
3.23%
Debt/Equity
1.06x
Frequently Asked Questions
What is the PE ratio of ED?
The trailing twelve-month PE ratio of ED reflects how much investors pay per dollar of Consolidated Edison, Inc.'s earnings. This metric is most useful when compared to Regulated Electric peers and the company's own historical range.
Is ED overvalued based on PE ratio?
ED's PE of 18.1x combined with a PEG ratio of 1.86 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 ED stock using PE ratio?
To value Consolidated Edison, Inc. using PE: (1) Compare the current PE (18.1x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (1.86) 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 ED?
ED's PEG ratio is 1.86, calculated by dividing the PE ratio (18.1x) 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 ED stock valuation?
PE ratio gives a quick relative read — how ED 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 ED 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 ED 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.