NRG Valuation

NRG Energy Inc

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159.870

+1.33(0.839%)1D

Overview
Forecast
Valuation
Earnings

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 20.52 is considered Overvalued compared with the five-year average of 9.43. The fair price of NRG Energy Inc (NRG) is between 66.57 to 111.02 according to relative valuation methord. Compared to the current price of 159.87 USD , NRG Energy Inc is Overvalued By 43.99%.

Relative Value

Fair Zone

66.57-111.02

Current Price：159.87

43.99%

Overvalued

20.52

Trailing

Forward

10.17

EV/EBITDA

NRG Energy Inc. (NRG) has a current EV/EBITDA of 10.17. The 5-year average EV/EBITDA is 7.36. The thresholds are as follows: Strongly Undervalued below 4.55, Undervalued between 4.55 and 5.96, Fairly Valued between 8.76 and 5.96, Overvalued between 8.76 and 10.16, and Strongly Overvalued above 10.16. The current Forward EV/EBITDA of 10.17 falls within the Strongly Overvalued range.

16.78

EV/EBIT

NRG Energy Inc. (NRG) has a current EV/EBIT of 16.78. The 5-year average EV/EBIT is 11.73. The thresholds are as follows: Strongly Undervalued below -0.74, Undervalued between -0.74 and 5.49, Fairly Valued between 17.96 and 5.49, Overvalued between 17.96 and 24.20, and Strongly Overvalued above 24.20. The current Forward EV/EBIT of 16.78 falls within the Historic Trend Line -Fairly Valued range.

1.01

NRG Energy Inc. (NRG) has a current PS of 1.01. The 5-year average PS is 0.51. The thresholds are as follows: Strongly Undervalued below 0.17, Undervalued between 0.17 and 0.34, Fairly Valued between 0.68 and 0.34, Overvalued between 0.68 and 0.85, and Strongly Overvalued above 0.85. The current Forward PS of 1.01 falls within the Strongly Overvalued range.

11.11

P/OCF

NRG Energy Inc. (NRG) has a current P/OCF of 11.11. The 5-year average P/OCF is 6.20. The thresholds are as follows: Strongly Undervalued below 2.60, Undervalued between 2.60 and 4.40, Fairly Valued between 8.01 and 4.40, Overvalued between 8.01 and 9.81, and Strongly Overvalued above 9.81. The current Forward P/OCF of 11.11 falls within the Strongly Overvalued range.

14.14

P/FCF

NRG Energy Inc. (NRG) has a current P/FCF of 14.14. The 5-year average P/FCF is 6.91. The thresholds are as follows: Strongly Undervalued below 2.48, Undervalued between 2.48 and 4.69, Fairly Valued between 9.12 and 4.69, Overvalued between 9.12 and 11.34, and Strongly Overvalued above 11.34. The current Forward P/FCF of 14.14 falls within the Strongly Overvalued range.

NRG Energy Inc (NRG) has a current Price-to-Book (P/B) ratio of 14.66. Compared to its 3-year average P/B ratio of 5.65 , the current P/B ratio is approximately 159.34% higher. Relative to its 5-year average P/B ratio of 4.90, the current P/B ratio is about 198.91% higher. NRG Energy Inc (NRG) has a Forward Free Cash Flow (FCF) yield of approximately 7.34%. Compared to its 3-year average FCF yield of -5.09%, the current FCF yield is approximately -244.13% lower. Relative to its 5-year average FCF yield of 3.61% , the current FCF yield is about 103.58% lower.

14.66

P/B

Median3y

5.65

Median5y

4.90

7.34

FCF Yield

Median3y

-5.09

Median5y

3.61

Competitors Valuation Multiple

The average P/S ratio for NRG's competitors is 2.03, providing a benchmark for relative valuation. NRG Energy Inc Corp (NRG) exhibits a P/S ratio of 1.01, which is -50.36% above the industry average. Given its robust revenue growth of 15.56%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Companhia Paranaense de Energia

1.66

-8.25%

25.09B

Performance Decomposition

Market capitalization of NRG increased by 114.81% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.87 to 25.61.

The secondary factor is the Margin Expansion, contributed 27.03%to the performance.

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

15.56%

7.43B → 8.59B

Revenue Growth

27.03%

6.88 → 8.74

Margin Expansion

72.22%

14.87 → 25.61

P/E Change

114.81%