Based on the provided data and recent market analysis, I'll evaluate if ED (Consolidated Edison) is currently overvalued.
Technical Analysis
Valuation Assessment
The stock's current PE ratio of 12.61 is significantly lower than its historical average of around 20-21 from early 2022, suggesting potential undervaluation from a historical perspective.
Financial Performance
- Net income increased significantly from $1.66B (2022) to $2.52B (2023)
- EPS improved from $4.67 to $7.21 year-over-year
- ROE strengthened from 8.15% to 12.04%
- Net margin expanded from 10.21% to 17.16%
Market Position
ED's stock has gained 8.1% over the past year, underperforming the S&P 500's 20.7% rally, but outperformed in 2025 with a 7.9% rise versus the S&P's 3.2%.
Recent Developments
Mizuho raised its price target to $95 while maintaining a "Neutral" rating, following ED's rate case filing that could accelerate CECONY's rate base CAGR from 6.5% to 7%.
Based on these factors, ED appears fairly valued at current levels, supported by strong financial performance and improving operational metrics, though regulatory uncertainties and infrastructure investment needs remain key considerations.