XEL Valuation

Xcel Energy Inc

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72.390

+0.05(0.069%)1D

Overview
Forecast
Valuation
Earnings

XEL Relative Valuation

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

Historical Valuation

Xcel Energy Inc (XEL) is now in the Fair zone, suggesting that its current forward PE ratio of 18.21 is considered Fairly compared with the five-year average of 19.73. The fair price of Xcel Energy Inc (XEL) is between 67.95 to 85.67 according to relative valuation methord.

Relative Value

Fair Zone

67.95-85.67

Current Price：72.34

Fair

18.22

Trailing

Forward

11.85

EV/EBITDA

Xcel Energy Inc. (XEL) has a current EV/EBITDA of 11.85. The 5-year average EV/EBITDA is 12.01. The thresholds are as follows: Strongly Undervalued below 9.78, Undervalued between 9.78 and 10.90, Fairly Valued between 13.13 and 10.90, Overvalued between 13.13 and 14.24, and Strongly Overvalued above 14.24. The current Forward EV/EBITDA of 11.85 falls within the Historic Trend Line -Fairly Valued range.

21.84

EV/EBIT

Xcel Energy Inc. (XEL) has a current EV/EBIT of 21.84. The 5-year average EV/EBIT is 22.77. The thresholds are as follows: Strongly Undervalued below 18.69, Undervalued between 18.69 and 20.73, Fairly Valued between 24.81 and 20.73, Overvalued between 24.81 and 26.86, and Strongly Overvalued above 26.86. The current Forward EV/EBIT of 21.84 falls within the Historic Trend Line -Fairly Valued range.

2.78

Xcel Energy Inc. (XEL) has a current PS of 2.78. The 5-year average PS is 2.55. The thresholds are as follows: Strongly Undervalued below 1.91, Undervalued between 1.91 and 2.23, Fairly Valued between 2.87 and 2.23, Overvalued between 2.87 and 3.18, and Strongly Overvalued above 3.18. The current Forward PS of 2.78 falls within the Historic Trend Line -Fairly Valued range.

7.24

P/OCF

Xcel Energy Inc. (XEL) has a current P/OCF of 7.24. The 5-year average P/OCF is 8.29. The thresholds are as follows: Strongly Undervalued below 4.75, Undervalued between 4.75 and 6.52, Fairly Valued between 10.06 and 6.52, Overvalued between 10.06 and 11.84, and Strongly Overvalued above 11.84. The current Forward P/OCF of 7.24 falls within the Historic Trend Line -Fairly Valued range.

-13.44

P/FCF

Xcel Energy Inc. (XEL) has a current P/FCF of -13.44. The 5-year average P/FCF is -43.69. The thresholds are as follows: Strongly Undervalued below -193.03, Undervalued between -193.03 and -118.36, Fairly Valued between 30.98 and -118.36, Overvalued between 30.98 and 105.65, and Strongly Overvalued above 105.65. The current Forward P/FCF of -13.44 falls within the Historic Trend Line -Fairly Valued range.

Xcel Energy Inc (XEL) has a current Price-to-Book (P/B) ratio of 2.04. Compared to its 3-year average P/B ratio of 2.00 , the current P/B ratio is approximately 2.20% higher. Relative to its 5-year average P/B ratio of 2.19, the current P/B ratio is about -6.76% higher. Xcel Energy Inc (XEL) has a Forward Free Cash Flow (FCF) yield of approximately -9.05%. Compared to its 3-year average FCF yield of -3.56%, the current FCF yield is approximately 154.44% lower. Relative to its 5-year average FCF yield of -4.37% , the current FCF yield is about 107.11% lower.

2.04

P/B

Median3y

2.00

Median5y

2.19

-9.12

FCF Yield

Median3y

-3.56

Median5y

-4.37

Competitors Valuation Multiple

The average P/S ratio for XEL's competitors is 2.65, providing a benchmark for relative valuation. Xcel Energy Inc Corp (XEL) exhibits a P/S ratio of 2.78, which is 4.92% above the industry average. Given its robust revenue growth of 8.55%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Public Service Enterprise Group Inc

Consolidated Edison Inc

Performance Decomposition

Market capitalization of XEL increased by 18.23% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.97 to 13.51.

The secondary factor is the Revenue Growth, contributed 8.55%to the performance.

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

8.55%

3.03B → 3.29B

Revenue Growth

35.51%

9.97 → 13.51

Margin Expansion

-25.83%

27.12 → 20.12

P/E Change

18.23%