FirstEnergy Corp. (FE) Stock Valuation — PE Analysis
Regulated Electric · NYSE
Current Price
$48.95
PE Ratio (TTM)
26.1x
Intrinsic Value
$52.81
+7.3% margin of safety
COMPETITIVE MOAT
↑Regulated Monopoly Infrastructure
FirstEnergy operates as a regulated utility, granting it exclusive rights to provide electricity within its service territories. This creates a natural monopoly, limiting direct competition for its core services.
↑High Capital Intensity
The electric utility industry requires massive, ongoing investment in infrastructure like power lines and substations. This high barrier to entry deters new competitors from entering the market.
↑Essential Service Demand
Electricity is a fundamental necessity for homes and businesses. This consistent and inelastic demand provides a stable revenue base, even during economic downturns.
INVESTMENT RISKS
↓Aging Infrastructure and Capital Expenditures
Significant ongoing investment is required to maintain and upgrade FirstEnergy's aging grid. Unexpected failures or the need for accelerated upgrades could strain financial resources.
↓Environmental Regulations and Transition Costs
Increasingly stringent environmental regulations and the transition to cleaner energy sources necessitate substantial capital outlays. These can impact operational costs and future investment strategies.
↓Extreme Weather Events
FirstEnergy's infrastructure is vulnerable to damage from severe weather, such as storms and heatwaves. Such events can lead to costly repairs, service disruptions, and reputational damage.
Base case
FE base case PE valuation
At a current price of $48.95, the base case PE valuation puts FE fair value near $52.81 per share. That figure assumes 7.7% yearly earnings growth, a target PE multiple of 26x, and a 10% discount rate.
Intrinsic Value
$52.81
Margin of safety
+7.3%
Expected annual return
+1.5%
Base case assumptions: 7.7% annual earnings growth, 26x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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 FE PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for FirstEnergy Corp. respond.
Open PE Calculator for FECompany Overview
FirstEnergy Corp. is an American utility company that, through its subsidiaries, provides comprehensive electricity services, encompassing generation, transmission, and distribution throughout the United States. Its operations are structured into Regulated Distribution and Regulated Transmission segments. The company leverages a diverse portfolio of power sources, operating facilities that produce electricity from coal, nuclear, hydroelectric, natural gas, wind, and solar technologies. Its vast infrastructure includes 24,074 circuit miles of overhead and underground transmission lines, complemented by an extensive electric distribution network featuring 273,295 miles of overhead pole lines and underground conduits for primary, secondary, and street lighting circuits. FirstEnergy serves approximately 6 million customers across six states: Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. The corporation was established in 1996 and is based in Akron, Ohio.
Financial Metrics — FE PE Stock Valuation Data
PE Ratio (TTM)
26.1x
PEG Ratio
n/m
Earnings Yield
3.84%
ROE (TTM)
8.5%
Revenue/Share (TTM)
$27.38
Dividend Yield
3.68%
Debt/Equity
2.13x
Frequently Asked Questions
What is the PE ratio of FE?
The trailing twelve-month PE ratio of FE reflects how much investors pay per dollar of FirstEnergy Corp.'s earnings. This metric is most useful when compared to Regulated Electric peers and the company's own historical range.
Is FE overvalued based on PE ratio?
FE's PE of 26.1x combined with a PEG ratio of -1.55 provides a growth-adjusted perspective. FE has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 FE stock using PE ratio?
To value FirstEnergy Corp. using PE: (1) Compare the current PE (26.1x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (-1.55) 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 FE?
FE's PEG ratio is -1.55, calculated by dividing the PE ratio (26.1x) by the expected earnings growth rate. Because FE has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for FE stock valuation?
PE ratio gives a quick relative read — how FE 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 FE 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 FE with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.