CNP Valuation

CenterPoint Energy Inc

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38.050

+0.05(0.132%)1D

Overview
Forecast
Valuation
Earnings

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 20.90 is considered Fairly compared with the five-year average of 18.97. The fair price of CenterPoint Energy Inc (CNP) is between 31.78 to 38.27 according to relative valuation methord.

Relative Value

Fair Zone

31.78-38.27

Current Price：37.88

Fair

20.62

Trailing

Forward

12.72

EV/EBITDA

CenterPoint Energy Inc. (CNP) has a current EV/EBITDA of 12.72. The 5-year average EV/EBITDA is 10.49. The thresholds are as follows: Strongly Undervalued below 9.07, Undervalued between 9.07 and 9.78, Fairly Valued between 11.21 and 9.78, Overvalued between 11.21 and 11.92, and Strongly Overvalued above 11.92. The current Forward EV/EBITDA of 12.72 falls within the Strongly Overvalued range.

18.94

EV/EBIT

CenterPoint Energy Inc. (CNP) has a current EV/EBIT of 18.94. The 5-year average EV/EBIT is 19.48. The thresholds are as follows: Strongly Undervalued below 16.57, Undervalued between 16.57 and 18.02, Fairly Valued between 20.93 and 18.02, Overvalued between 20.93 and 22.39, and Strongly Overvalued above 22.39. The current Forward EV/EBIT of 18.94 falls within the Historic Trend Line -Fairly Valued range.

2.80

CenterPoint Energy Inc. (CNP) has a current PS of 2.80. The 5-year average PS is 2.03. The thresholds are as follows: Strongly Undervalued below 1.42, Undervalued between 1.42 and 1.72, Fairly Valued between 2.33 and 1.72, Overvalued between 2.33 and 2.63, and Strongly Overvalued above 2.63. The current Forward PS of 2.80 falls within the Strongly Overvalued range.

9.34

P/OCF

CenterPoint Energy Inc. (CNP) has a current P/OCF of 9.34. The 5-year average P/OCF is 7.86. The thresholds are as follows: Strongly Undervalued below 3.41, Undervalued between 3.41 and 5.64, Fairly Valued between 10.08 and 5.64, Overvalued between 10.08 and 12.31, and Strongly Overvalued above 12.31. The current Forward P/OCF of 9.34 falls within the Historic Trend Line -Fairly Valued range.

-18.59

P/FCF

CenterPoint Energy Inc. (CNP) has a current P/FCF of -18.59. The 5-year average P/FCF is -57.52. The thresholds are as follows: Strongly Undervalued below -497.40, Undervalued between -497.40 and -277.46, Fairly Valued between 162.43 and -277.46, Overvalued between 162.43 and 382.37, and Strongly Overvalued above 382.37. The current Forward P/FCF of -18.59 falls within the Historic Trend Line -Fairly Valued range.

CenterPoint Energy Inc (CNP) has a current Price-to-Book (P/B) ratio of 2.28. Compared to its 3-year average P/B ratio of 1.95 , the current P/B ratio is approximately 16.73% higher. Relative to its 5-year average P/B ratio of 2.00, the current P/B ratio is about 14.29% higher. CenterPoint Energy Inc (CNP) has a Forward Free Cash Flow (FCF) yield of approximately -13.57%. Compared to its 3-year average FCF yield of -8.93%, the current FCF yield is approximately 51.91% lower. Relative to its 5-year average FCF yield of -10.26% , the current FCF yield is about 32.21% lower.

2.25

P/B

Median3y

1.95

Median5y

2.00

-13.47

FCF Yield

Median3y

-8.93

Median5y

-10.26

Competitors Valuation Multiple

The average P/S ratio for CNP's competitors is 2.63, providing a benchmark for relative valuation. CenterPoint Energy Inc Corp (CNP) exhibits a P/S ratio of 2.80, which is 6.28% above the industry average. Given its robust revenue growth of 2.05%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CNP.N

CenterPoint Energy Inc

Brookfield Renewable Partners LP

2.23

14.17%

7.49B

Performance Decomposition

Market capitalization of CNP increased by 41.22% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.22 to 26.53.

The secondary factor is the Revenue Growth, contributed 2.05%to the performance.

Overall, the performance of CNP in the past 1 year is driven by P/E Change. Which is more unsustainable.

2.05%

1.91B → 1.94B

Revenue Growth

-14.87%

11.97 → 10.19

Margin Expansion

54.04%

17.22 → 26.53

P/E Change

41.22%