FE Valuation

FirstEnergy Corp

Add to Watchlist

Advanced Chart

41.410

-0.53(-1.264%)1D

Overview
Forecast
Valuation
Earnings

FE Relative Valuation

FE'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, FE is overvalued; if below, it's undervalued.

Historical Valuation

FirstEnergy Corp (FE) is now in the Fair zone, suggesting that its current forward PE ratio of 16.40 is considered Fairly compared with the five-year average of 14.86. The fair price of FirstEnergy Corp (FE) is between 37.63 to 44.52 according to relative valuation methord.

Relative Value

Fair Zone

37.63-44.52

Current Price：41.94

Fair

16.40

Trailing

Forward

10.78

EV/EBITDA

FirstEnergy Corp. (FE) has a current EV/EBITDA of 10.78. The 5-year average EV/EBITDA is 11.22. The thresholds are as follows: Strongly Undervalued below 9.25, Undervalued between 9.25 and 10.23, Fairly Valued between 12.20 and 10.23, Overvalued between 12.20 and 13.18, and Strongly Overvalued above 13.18. The current Forward EV/EBITDA of 10.78 falls within the Historic Trend Line -Fairly Valued range.

14.83

EV/EBIT

FirstEnergy Corp. (FE) has a current EV/EBIT of 14.83. The 5-year average EV/EBIT is 16.22. The thresholds are as follows: Strongly Undervalued below 12.76, Undervalued between 12.76 and 14.49, Fairly Valued between 17.95 and 14.49, Overvalued between 17.95 and 19.68, and Strongly Overvalued above 19.68. The current Forward EV/EBIT of 14.83 falls within the Historic Trend Line -Fairly Valued range.

1.63

FirstEnergy Corp. (FE) has a current PS of 1.63. The 5-year average PS is 1.70. The thresholds are as follows: Strongly Undervalued below 1.30, Undervalued between 1.30 and 1.50, Fairly Valued between 1.91 and 1.50, Overvalued between 1.91 and 2.11, and Strongly Overvalued above 2.11. The current Forward PS of 1.63 falls within the Historic Trend Line -Fairly Valued range.

6.96

P/OCF

FirstEnergy Corp. (FE) has a current P/OCF of 6.96. The 5-year average P/OCF is 7.44. The thresholds are as follows: Strongly Undervalued below 4.92, Undervalued between 4.92 and 6.18, Fairly Valued between 8.70 and 6.18, Overvalued between 8.70 and 9.96, and Strongly Overvalued above 9.96. The current Forward P/OCF of 6.96 falls within the Historic Trend Line -Fairly Valued range.

23.97

P/FCF

FirstEnergy Corp. (FE) has a current P/FCF of 23.97. The 5-year average P/FCF is 10.93. The thresholds are as follows: Strongly Undervalued below -107.34, Undervalued between -107.34 and -48.20, Fairly Valued between 70.07 and -48.20, Overvalued between 70.07 and 129.20, and Strongly Overvalued above 129.20. The current Forward P/FCF of 23.97 falls within the Historic Trend Line -Fairly Valued range.

FirstEnergy Corp (FE) has a current Price-to-Book (P/B) ratio of 1.93. Compared to its 3-year average P/B ratio of 2.01 , the current P/B ratio is approximately -4.06% higher. Relative to its 5-year average P/B ratio of 2.24, the current P/B ratio is about -14.13% higher. FirstEnergy Corp (FE) has a Forward Free Cash Flow (FCF) yield of approximately -2.83%. Compared to its 3-year average FCF yield of -4.69%, the current FCF yield is approximately -39.64% lower. Relative to its 5-year average FCF yield of -3.50% , the current FCF yield is about -18.98% lower.

1.93

P/B

Median3y

2.01

Median5y

2.24

-2.83

FCF Yield

Median3y

-4.69

Median5y

-3.50

Competitors Valuation Multiple

The average P/S ratio for FE's competitors is 2.46, providing a benchmark for relative valuation. FirstEnergy Corp Corp (FE) exhibits a P/S ratio of 1.63, which is -33.80% above the industry average. Given its robust revenue growth of 14.54%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Brookfield Renewable Partners LP

CenterPoint Energy Inc

Performance Decomposition

Market capitalization of FE increased by 0.07% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.12 to 11.00.

The secondary factor is the Revenue Growth, contributed 14.54%to the performance.

Overall, the performance of FE in the past 1 year is driven by Margin Expansion. Which is more sustainable.

14.54%

3.29B → 3.77B

Revenue Growth

35.47%

8.12 → 11.00

Margin Expansion

-49.94%

44.56 → 22.31

P/E Change

0.07%