NEE PE Ratio & Valuation,Is NEE Overvalued

NEE Relative Valuation

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

Historical Valuation

Nextera Energy Inc (NEE) is now in the Fair zone, suggesting that its current forward PE ratio of 21.71 is considered Fairly compared with the five-year average of 24.94. The fair price of Nextera Energy Inc (NEE) is between 76.36 to 108.72 according to relative valuation methord.

Relative Value

Fair Zone

76.36-108.72

Current Price：81.65

Fair

21.71

14.16

EV/EBITDA

Nextera Energy Inc. (NEE) has a current EV/EBITDA of 14.16. The 5-year average EV/EBITDA is 16.12. The thresholds are as follows: Strongly Undervalued below 10.11, Undervalued between 10.11 and 13.11, Fairly Valued between 19.13 and 13.11, Overvalued between 19.13 and 22.13, and Strongly Overvalued above 22.13. The current Forward EV/EBITDA of 14.16 falls within the Historic Trend Line -Fairly Valued range.

23.85

EV/EBIT

Nextera Energy Inc. (NEE) has a current EV/EBIT of 23.85. The 5-year average EV/EBIT is 27.18. The thresholds are as follows: Strongly Undervalued below 16.86, Undervalued between 16.86 and 22.02, Fairly Valued between 32.34 and 22.02, Overvalued between 32.34 and 37.50, and Strongly Overvalued above 37.50. The current Forward EV/EBIT of 23.85 falls within the Historic Trend Line -Fairly Valued range.

5.39

Nextera Energy Inc. (NEE) has a current PS of 5.39. The 5-year average PS is 6.10. The thresholds are as follows: Strongly Undervalued below 3.45, Undervalued between 3.45 and 4.78, Fairly Valued between 7.43 and 4.78, Overvalued between 7.43 and 8.75, and Strongly Overvalued above 8.75. The current Forward PS of 5.39 falls within the Historic Trend Line -Fairly Valued range.

11.87

P/OCF

Nextera Energy Inc. (NEE) has a current P/OCF of 11.87. The 5-year average P/OCF is 13.47. The thresholds are as follows: Strongly Undervalued below 8.11, Undervalued between 8.11 and 10.79, Fairly Valued between 16.15 and 10.79, Overvalued between 16.15 and 18.82, and Strongly Overvalued above 18.82. The current Forward P/OCF of 11.87 falls within the Historic Trend Line -Fairly Valued range.

-14.65

P/FCF

Nextera Energy Inc. (NEE) has a current P/FCF of -14.65. The 5-year average P/FCF is -23.20. The thresholds are as follows: Strongly Undervalued below -53.12, Undervalued between -53.12 and -38.16, Fairly Valued between -8.24 and -38.16, Overvalued between -8.24 and 6.71, and Strongly Overvalued above 6.71. The current Forward P/FCF of -14.65 falls within the Historic Trend Line -Fairly Valued range.

Nextera Energy Inc (NEE) has a current Price-to-Book (P/B) ratio of 3.14. Compared to its 3-year average P/B ratio of 3.10 , the current P/B ratio is approximately 1.25% higher. Relative to its 5-year average P/B ratio of 3.57, the current P/B ratio is about -12.10% higher. Nextera Energy Inc (NEE) has a Forward Free Cash Flow (FCF) yield of approximately -7.05%. Compared to its 3-year average FCF yield of -8.92%, the current FCF yield is approximately -20.97% lower. Relative to its 5-year average FCF yield of -7.48% , the current FCF yield is about -5.84% lower.

3.14

P/B

Median3y

3.10

Median5y

3.57

-7.05

FCF Yield

Median3y

-8.92

Median5y

-7.48

Competitors Valuation Multiple

The average P/S ratio for NEE's competitors is 3.38, providing a benchmark for relative valuation. Nextera Energy Inc Corp (NEE) exhibits a P/S ratio of 5.39, which is 59.58% above the industry average. Given its robust revenue growth of 5.27%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NEE increased by 14.83% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 21.03 to 26.80.

The secondary factor is the Revenue Growth, contributed 5.27%to the performance.

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

5.27%

7.57B → 7.97B

Revenue Growth

27.44%

21.03 → 26.80

Margin Expansion

-17.88%

31.57 → 25.92

P/E Change

14.83%

71.10 → 81.65

Mkt Cap Growth

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Frequently Asked Questions

Is Nextera Energy Inc (NEE) currently overvalued or undervalued?

What is Nextera Energy Inc (NEE) fair value?

NEE'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. The fair price of Nextera Energy Inc (NEE) is between 76.36 to 108.72 according to relative valuation methord.

How does NEE's valuation metrics compare to the industry average?

What is the current P/B ratio for Nextera Energy Inc (NEE) as of Dec 15 2025?

As of Dec 15 2025, Nextera Energy Inc (NEE) has a P/B ratio of 3.14. This indicates that the market values NEE at 3.14 times its book value.

What is the current FCF Yield for Nextera Energy Inc (NEE) as of Dec 15 2025?

As of Dec 15 2025, Nextera Energy Inc (NEE) has a FCF Yield of -7.05%. This means that for every dollar of Nextera Energy Inc’s market capitalization, the company generates -7.05 cents in free cash flow.

What is the current Forward P/E ratio for Nextera Energy Inc (NEE) as of Dec 15 2025?

As of Dec 15 2025, Nextera Energy Inc (NEE) has a Forward P/E ratio of 21.71. This means the market is willing to pay $21.71 for every dollar of Nextera Energy Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Nextera Energy Inc (NEE) as of Dec 15 2025?

As of Dec 15 2025, Nextera Energy Inc (NEE) has a Forward P/S ratio of 5.39. This means the market is valuing NEE at $5.39 for every dollar of expected revenue over the next 12 months.

NEE Valuation