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Is NextEra Energy Inc. (NEE) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Utilities sector peers in our coverage

Insufficient Data TTM fundamentals · sector averages from covered peers

We don’t have enough peer data to compute a reliable sector comparison for NEE right now.

NEE has negative trailing-twelve-month earnings, so a P/E ratio isn't meaningful — we compare on price-to-sales instead.

The Numbers

P/E (TTM)

—

Sector avg: —

P/S (TTM)

—

Sector avg: —

Market Cap

$182.15B

EPS (TTM): —

Revenue (TTM)

—

Net income: —

Is the Multiple Justified?

July 6, 2026

NextEra Energy's reported negative TTM earnings and unavailable P/S multiple should be viewed in the context of its recent performance and sector dynamics. The company reported a Q1 2026 EPS of $1.09, surpassing analyst expectations. Over the past five years, NextEra Energy has demonstrated an average annual earnings growth rate of 17.8%, significantly outpacing the electric utilities industry. This growth is further highlighted by a 48.5% earnings increase over the last year. The utilities sector is currently experiencing increased demand, particularly from the expansion of AI infrastructure and data centers, which could support future revenue and earnings. Discussions around potential acquisitions, such as Dominion, underscore the ongoing consolidation and strategic positioning within the industry to capitalize on these trends.

Sources

Frequently Asked Questions

Is NEE overvalued or undervalued?
We don't have enough peer data to compute a sector comparison for NEE right now.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing NEE with its own Utilities peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Utilities names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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