Is Nextera Energy Inc (NEE) overvalued?
On Equity Rank's model estimate, NEE trades 42% above its fair value. Nextera Energy Inc (NEE) last closed at $86.95; the multi-method model fair value is $61.37.
| Price | Model fair value | Price vs model |
|---|---|---|
| $86.95 | $61.37 | 42% above |
What the answer rests on
- 0 of 9 valuation methods put NEE's value above its price and 9 put it below, so the methods mostly agree.
- To justify today's price, NEE's free cash flow would need to grow about 15.6% a year for ten years (a reverse discounted cash flow).
- Over the past year the price sat below the model fair value on 39% of trading days. The gap ranged from 16% below to 51% 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 NEE's fair value · What prices assume · Other companies