NRG Energy Valuation

NRG Stock  USD 67.69  1.07  1.61%   
At this time, the firm appears to be overvalued. NRG Energy secures a last-minute Real Value of $58.35 per share. The latest price of the firm is $67.69. Our model forecasts the value of NRG Energy from inspecting the firm fundamentals such as profit margin of (0.01) %, and Return On Equity of -0.06 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend locking in undervalued stocks and disposing overvalued stocks since, at some point future time, asset prices and their ongoing real values will merge together.
Price Book
6.3411
Enterprise Value
25.4 B
Enterprise Value Ebitda
14.3828
Price Sales
0.5043
Forward PE
10.9409
Overvalued
Today
67.69
Please note that NRG Energy's price fluctuation is very steady at this time. Calculation of the real value of NRG Energy is based on 3 months time horizon. Increasing NRG Energy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for NRG Energy is useful when determining the fair value of the NRG stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of NRG Energy. Since NRG Energy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of NRG Stock. However, NRG Energy's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  67.69 Real  58.35 Target  41.75 Hype  68.1 Naive  64.41
The real value of NRG Stock, also known as its intrinsic value, is the underlying worth of NRG Energy Company, which is reflected in its stock price. It is based on NRG Energy's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of NRG Energy's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence NRG Energy's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
58.35
Real Value
74.46
Upside
Estimating the potential upside or downside of NRG Energy helps investors to forecast how NRG stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of NRG Energy more accurately as focusing exclusively on NRG Energy's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
-0.01-0.01-0.01
Details
Hype
Prediction
LowEstimatedHigh
66.6968.1069.51
Details
Potential
Annual Dividend
LowForecastedHigh
0.970.991.01
Details
12 Analysts
Consensus
LowTarget PriceHigh
37.9941.7546.34
Details

NRG Energy Investments

(2.62 Billion)

NRG Energy Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining NRG Energy's current stock value. Our valuation model uses many indicators to compare NRG Energy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across NRG Energy competition to find correlations between indicators driving NRG Energy's intrinsic value. More Info.
NRG Energy is rated below average in last dividend paid category among related companies. It is rated below average in net asset category among related companies making up about  16,907,792,208  of Net Asset per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value NRG Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NRG Energy's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the NRG Energy's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates NRG Energy's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in NRG Energy and how it compares across the competition.

About NRG Energy Valuation

The stock valuation mechanism determines the current worth of NRG Energy on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of NRG Energy. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of NRG Energy based exclusively on its fundamental and basic technical indicators. By analyzing NRG Energy's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of NRG Energy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of NRG Energy. We calculate exposure to NRG Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to NRG Energy's related companies.
Last ReportedProjected for 2024
Gross Profit2.3 B2.8 B
Pretax Profit Margin(0.01)(0.01)
Operating Profit Margin 0.01  0.01 
Net Loss(0.01)(0.01)
Gross Profit Margin 0.08  0.08 

8 Steps to conduct NRG Energy's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates NRG Energy's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct NRG Energy's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain NRG Energy's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine NRG Energy's revenue streams: Identify NRG Energy's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research NRG Energy's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish NRG Energy's growth potential: Evaluate NRG Energy's management, business model, and growth potential.
  • Determine NRG Energy's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate NRG Energy's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
NRG Energy's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether NRG Energy's value is low or high relative to the company's performance and growth projections. Determining the market value of NRG Energy can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of NRG Energy represents a small ownership stake in the entity. As a stockholder of NRG, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

NRG Energy Dividends Analysis For Valuation

At this time, NRG Energy's Dividend Yield is most likely to increase slightly in the upcoming years. The NRG Energy's current Dividend Paid And Capex Coverage Ratio is estimated to increase to 0.96, while Dividends Paid is forecasted to increase to (361.9 M). . At this time, NRG Energy's Price Earnings To Growth Ratio is most likely to increase slightly in the upcoming years.
Last ReportedProjected for 2024
Dividends Paid-381 M-361.9 M
Dividend Yield 0.03  0.03 
Dividend Payout Ratio(1.89)(1.79)
Dividend Paid And Capex Coverage Ratio 0.92  0.96 
There are various types of dividends NRG Energy can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of NRG shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from NRG Energy directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When NRG pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of NRG Energy by the value of the dividends paid out.

NRG Energy Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as NRG Energy does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding228 M
Quarterly Earnings Growth Y O Y3.946
Forward Price Earnings10.9409

NRG Energy Current Valuation Indicators

Valuation refers to the process of determining the present value of NRG Energy and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value NRG we look at many different elements of the entity such as NRG's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. NRG Energy's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final NRG Energy's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as NRG Energy, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use NRG Energy's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes NRG Energy's worth.
When determining whether NRG Energy is a strong investment it is important to analyze NRG Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact NRG Energy's future performance. For an informed investment choice regarding NRG Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NRG Energy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For more detail on how to invest in NRG Stock please use our How to Invest in NRG Energy guide.
You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

Complementary Tools for NRG Stock analysis

When running NRG Energy's price analysis, check to measure NRG Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NRG Energy is operating at the current time. Most of NRG Energy's value examination focuses on studying past and present price action to predict the probability of NRG Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NRG Energy's price. Additionally, you may evaluate how the addition of NRG Energy to your portfolios can decrease your overall portfolio volatility.
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Is NRG Energy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NRG Energy. If investors know NRG will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NRG Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
3.946
Dividend Share
1.54
Earnings Share
(1.14)
Revenue Per Share
126.417
Quarterly Revenue Growth
(0.13)
The market value of NRG Energy is measured differently than its book value, which is the value of NRG that is recorded on the company's balance sheet. Investors also form their own opinion of NRG Energy's value that differs from its market value or its book value, called intrinsic value, which is NRG Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NRG Energy's market value can be influenced by many factors that don't directly affect NRG Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NRG Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if NRG Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NRG Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.