Current Price
$47.68
PE Ratio (TTM)
23.7x
Intrinsic Value
$55.52
+14.1% margin of safety
COMPETITIVE MOAT
↑Regulated Monopoly Power
NiSource operates as a regulated utility, granting it exclusive rights to provide gas and electric services within its service territories. This regulatory structure creates a significant barrier to entry for competitors.
↑Essential Service Demand
The demand for natural gas and electricity is non-discretionary, ensuring a stable and predictable revenue stream for NiSource. Customers rely on these services for daily life and business operations.
↑Long-Term Infrastructure Investments
NiSource's substantial investments in aging infrastructure, often mandated by regulators, create high switching costs for customers and require significant capital for new entrants to replicate.
INVESTMENT RISKS
↓Regulatory Uncertainty
Changes in regulatory policies, rate decisions, or environmental mandates can significantly impact NiSource's profitability and operational flexibility. Future rate increases are not guaranteed.
↓Capital Expenditure Needs
The company faces ongoing, substantial capital expenditure requirements for infrastructure upgrades and maintenance. Failure to secure adequate funding or execute these projects efficiently poses a risk.
↓Interest Rate Sensitivity
As a capital-intensive utility, NiSource is sensitive to rising interest rates, which increase the cost of debt financing for its extensive infrastructure projects and can pressure earnings.
Base case
NI base case PE valuation
A base case PE valuation for NI estimates a fair value of about $55.52 per share, against a current price of $47.68. The model assumes 8.9% annual earnings growth, a 24x target PE multiple, and a 10% discount rate.
Intrinsic Value
$55.52
Margin of safety
+14.1%
Expected annual return
+3.1%
Base case assumptions: 8.9% annual earnings growth, 24x 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 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. operates as an energy holding company, primarily functioning as a regulated natural gas and electric utility within the United States. Its business activities are organized into two main divisions: Gas Distribution Operations and Electric Operations. The company's Gas Distribution segment delivers natural gas to approximately 853,000 customers across northern Indiana, and an additional 2.4 million residential, commercial, and industrial clients throughout Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. This extensive network includes about 54,600 miles of distribution main pipelines and customer service lines, along with 1,000 miles of transmission main pipelines. Through its Electric Operations, NiSource provides electricity to roughly 483,000 customers residing in 20 counties in northern Indiana, while also engaging in wholesale electricity and transmission transactions. The company maintains a diverse portfolio of power generation assets. These include coal-fired plants with capacities of 722 megawatts (MW) in Wheatfield and 455 MW in Michigan City; a 563 MW combined cycle gas turbine facility in West Terre Haute; natural gas generating units providing 155 MW in Wheatfield; hydroelectric plants contributing 9 MW in Carroll County and 7 MW in White County; and wind energy facilities in White County, Indiana, producing 102 MW and 302 MW, respectively. Originally founded in 1847, the company was known as NIPSCO Industries, Inc. before officially changing its name to NiSource Inc. in April 1999. Its corporate headquarters are located in Merrillville, Indiana.
Financial Metrics — NI PE Stock Valuation Data
PE Ratio (TTM)
23.7x
PEG Ratio
2.76
Earnings Yield
4.21%
ROE (TTM)
10.4%
Revenue/Share (TTM)
$14.24
Dividend Yield
2.43%
Debt/Equity
1.74x
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 23.7x combined with a PEG ratio of 2.76 provides a growth-adjusted perspective. A PEG above 2.0 suggests NI may be richly valued even accounting for growth. 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 (23.7x) against the Regulated Gas median to assess relative pricing, (2) check the PEG ratio (2.76) 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 2.76, calculated by dividing the PE ratio (23.7x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. 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 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.