Is FirstEnergy Corporation (FE) overvalued?
On Equity Rank's model estimate, FE trades close to its fair value (4% above it). FirstEnergy Corporation (FE) last closed at $46.43; the multi-method model fair value is $44.83.
| Price | Model fair value | Price vs model |
|---|---|---|
| $46.43 | $44.83 | 4% above |
What the answer rests on
- 5 of 11 valuation methods put FE's value above its price and 6 put it below, so the methods disagree.
- FE trades at 22.8 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 19% of trading days. The gap ranged from 6% below to 60% 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 FE's fair value · What prices assume · Other companies