NRG Valuation

NRG Energy Inc

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168.210

+2.06(1.240%)1D

NRG Relative Valuation

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

Historical Valuation

NRG Energy Inc (NRG) is now in the Overvalued zone, suggesting that its current forward PE ratio of 18.53 is considered Overvalued compared with the five-year average of 10.12. The fair price of NRG Energy Inc (NRG) is between 75.26 to 137.76 according to relative valuation methord. Compared to the current price of 166.15 USD , NRG Energy Inc is Overvalued By 20.61%.

Relative Value

Fair Zone

75.26-137.76

Current Price：166.15

20.61%

Overvalued

18.24

Trailing

Forward

9.01

EV/EBITDA

NRG Energy Inc. (NRG) has a current EV/EBITDA of 9.01. The 5-year average EV/EBITDA is 7.47. The thresholds are as follows: Strongly Undervalued below 4.53, Undervalued between 4.53 and 6.00, Fairly Valued between 8.93 and 6.00, Overvalued between 8.93 and 10.40, and Strongly Overvalued above 10.40. The current Forward EV/EBITDA of 9.01 falls within the Overvalued range.

14.26

EV/EBIT

NRG Energy Inc. (NRG) has a current EV/EBIT of 14.26. The 5-year average EV/EBIT is 11.79. The thresholds are as follows: Strongly Undervalued below -0.53, Undervalued between -0.53 and 5.63, Fairly Valued between 17.95 and 5.63, Overvalued between 17.95 and 24.11, and Strongly Overvalued above 24.11. The current Forward EV/EBIT of 14.26 falls within the Historic Trend Line -Fairly Valued range.

166.15

NRG Energy Inc. (NRG) has a current PS of 166.15. The 5-year average PS is 2.17. The thresholds are as follows: Strongly Undervalued below -31.20, Undervalued between -31.20 and -14.52, Fairly Valued between 18.86 and -14.52, Overvalued between 18.86 and 35.55, and Strongly Overvalued above 35.55. The current Forward PS of 166.15 falls within the Strongly Overvalued range.

8.95

P/OCF

NRG Energy Inc. (NRG) has a current P/OCF of 8.95. The 5-year average P/OCF is 6.39. The thresholds are as follows: Strongly Undervalued below 2.57, Undervalued between 2.57 and 4.48, Fairly Valued between 8.31 and 4.48, Overvalued between 8.31 and 10.22, and Strongly Overvalued above 10.22. The current Forward P/OCF of 8.95 falls within the Overvalued range.

10.78

P/FCF

NRG Energy Inc. (NRG) has a current P/FCF of 10.78. The 5-year average P/FCF is 7.23. The thresholds are as follows: Strongly Undervalued below 2.42, Undervalued between 2.42 and 4.83, Fairly Valued between 9.64 and 4.83, Overvalued between 9.64 and 12.05, and Strongly Overvalued above 12.05. The current Forward P/FCF of 10.78 falls within the Overvalued range.

NRG Energy Inc (NRG) has a current Price-to-Book (P/B) ratio of 24.59. Compared to its 3-year average P/B ratio of 7.36 , the current P/B ratio is approximately 233.90% higher. Relative to its 5-year average P/B ratio of 5.78, the current P/B ratio is about 325.66% higher. NRG Energy Inc (NRG) has a Forward Free Cash Flow (FCF) yield of approximately 0.07%. Compared to its 3-year average FCF yield of -6.44%, the current FCF yield is approximately -101.09% lower. Relative to its 5-year average FCF yield of 2.71% , the current FCF yield is about -97.41% lower.

24.20

P/B

Median3y

7.36

Median5y

5.78

0.07

FCF Yield

Median3y

-6.44

Median5y

2.71

Competitors Valuation Multiple

The average P/S ratio for NRG's competitors is 80.18, providing a benchmark for relative valuation. NRG Energy Inc Corp (NRG) exhibits a P/S ratio of 166.15, which is 107.22% above the industry average. Given its robust revenue growth of 5.35%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Consolidated Edison Inc

Energy of Minas Gerais Co

Performance Decomposition

Market capitalization of NRG increased by 63.52% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.85 to 24.52.

The secondary factor is the Revenue Growth, contributed 5.35%to the performance.

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

5.35%

7.22B → 7.60B

Revenue Growth

-118.81%

-10.63 → 2.00

Margin Expansion

176.98%

8.85 → 24.52

P/E Change

63.52%