Is CenterPoint Energy Inc (CNP) overvalued?
On Equity Rank's model estimate, CNP trades 29% above its fair value. CenterPoint Energy Inc (CNP) last closed at $40.66; the multi-method model fair value is $31.52.
| Price | Model fair value | Price vs model |
|---|---|---|
| $40.66 | $31.52 | 29% above |
What the answer rests on
- 1 of 11 valuation methods put CNP's value above its price and 10 put it below, so the methods mostly agree.
- CNP trades at 23.6 times its last year's earnings, against a median of 21.1 for 66 profitable Utilities companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 1% above to 83% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind CNP's fair value · What prices assume · Other companies