CNP Relative Valuation
CNP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CNP is overvalued; if below, it's undervalued.
Historical Valuation
CenterPoint Energy Inc (CNP) is now in the Fair zone, suggesting that its current forward PE ratio of 20.19 is considered Fairly compared with the five-year average of 19.16. The fair price of CenterPoint Energy Inc (CNP) is between 33.51 to 40.28 according to relative valuation methord.
Relative Value
Fair Zone
33.51-40.28
Current Price：38.54
Fair
20.27
PE
1Y
3Y
5Y
Trailing
Forward
13.49
EV/EBITDA
CenterPoint Energy Inc. (CNP) has a current EV/EBITDA of 13.49. The 5-year average EV/EBITDA is 10.70. The thresholds are as follows: Strongly Undervalued below 8.85, Undervalued between 8.85 and 9.78, Fairly Valued between 11.62 and 9.78, Overvalued between 11.62 and 12.54, and Strongly Overvalued above 12.54. The current Forward EV/EBITDA of 13.49 falls within the Strongly Overvalued range.
20.07
EV/EBIT
CenterPoint Energy Inc. (CNP) has a current EV/EBIT of 20.07. The 5-year average EV/EBIT is 19.49. The thresholds are as follows: Strongly Undervalued below 16.57, Undervalued between 16.57 and 18.03, Fairly Valued between 20.94 and 18.03, Overvalued between 20.94 and 22.40, and Strongly Overvalued above 22.40. The current Forward EV/EBIT of 20.07 falls within the Historic Trend Line -Fairly Valued range.
2.71
PS
CenterPoint Energy Inc. (CNP) has a current PS of 2.71. The 5-year average PS is 2.10. The thresholds are as follows: Strongly Undervalued below 1.46, Undervalued between 1.46 and 1.78, Fairly Valued between 2.41 and 1.78, Overvalued between 2.41 and 2.73, and Strongly Overvalued above 2.73. The current Forward PS of 2.71 falls within the Overvalued range.
8.65
P/OCF
CenterPoint Energy Inc. (CNP) has a current P/OCF of 8.65. The 5-year average P/OCF is 8.04. The thresholds are as follows: Strongly Undervalued below 3.70, Undervalued between 3.70 and 5.87, Fairly Valued between 10.22 and 5.87, Overvalued between 10.22 and 12.39, and Strongly Overvalued above 12.39. The current Forward P/OCF of 8.65 falls within the Historic Trend Line -Fairly Valued range.
0.00
P/FCF
CenterPoint Energy Inc. (CNP) has a current P/FCF of 0.00. The 5-year average P/FCF is -60.89. The thresholds are as follows: Strongly Undervalued below -496.32, Undervalued between -496.32 and -278.60, Fairly Valued between 156.83 and -278.60, Overvalued between 156.83 and 374.54, and Strongly Overvalued above 374.54. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.
CenterPoint Energy Inc (CNP) has a current Price-to-Book (P/B) ratio of 2.27. Compared to its 3-year average P/B ratio of 1.98 , the current P/B ratio is approximately 14.65% higher. Relative to its 5-year average P/B ratio of 2.02, the current P/B ratio is about 12.63% higher. CenterPoint Energy Inc (CNP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -9.12%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -10.75% , the current FCF yield is about -100.00% lower.
2.28
P/B
Median3y
1.98
Median5y
2.02
-12.60
FCF Yield
Median3y
-9.12
Median5y
-10.75
Competitors Valuation Multiple
The average P/S ratio for CNP's competitors is , providing a benchmark for relative valuation. CenterPoint Energy Inc Corp (CNP) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 7.11%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CNP increased by 22.25% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 10.40 to 14.74.
The secondary factor is the Revenue Growth, contributed 7.11%to the performance.
Overall, the performance of CNP in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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