Eversource Energy (ES) Stock Valuation — PE Analysis
Regulated Electric · NYSE
Current Price
$69.43
PE Ratio (TTM)
14.9x
Intrinsic Value
$73.55
+5.6% margin of safety
COMPETITIVE MOAT
↑Regulated Monopoly Power
Eversource operates as a regulated utility, granting it exclusive rights to serve specific geographic areas. This creates a natural monopoly, limiting direct competition for its core electricity and gas distribution services.
↑Essential Service Infrastructure
The company owns and maintains critical infrastructure for electricity and gas delivery, which is essential for modern life. Replacing this extensive network would be prohibitively expensive and time-consuming for any competitor.
↑Predictable Revenue Streams
As a regulated utility, Eversource's rates are set by regulatory bodies, leading to stable and predictable revenue. This allows for consistent cash flow, even during economic downturns.
INVESTMENT RISKS
↓Regulatory Scrutiny and Rate Cases
Eversource is subject to strict regulatory oversight, which can impact its ability to raise rates and recover costs. Unfavorable decisions in rate cases can significantly affect profitability.
↓Interest Rate Sensitivity
Utilities often carry significant debt to fund infrastructure investments. Rising interest rates increase borrowing costs, potentially pressuring earnings and dividend payouts.
↓Capital Expenditure Demands
Significant ongoing investment is required to maintain and upgrade aging infrastructure and adapt to new energy technologies. Delays or cost overruns in these projects can strain financial resources.
Base case
ES base case PE valuation
A base case PE valuation for ES estimates a fair value of about $73.55 per share, against a current price of $69.43. The model assumes 4.4% annual earnings growth, a 15x target PE multiple, and a 10% discount rate.
Intrinsic Value
$73.55
Margin of safety
+5.6%
Expected annual return
+1.2%
Base case assumptions: 4.4% annual earnings growth, 15x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-15.
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)
14.9x
PEG Ratio
0.15
Earnings Yield
6.70%
ROE (TTM)
10.9%
Revenue/Share (TTM)
$37.05
Dividend Yield
4.44%
Debt/Equity
1.84x
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 14.9x combined with a PEG ratio of 0.15 provides a growth-adjusted perspective. A PEG below 1.0 suggests ES may be undervalued relative to its 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 (14.9x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (0.15) 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 0.15, calculated by dividing the PE ratio (14.9x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.