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

$184.89B

EPS (TTM): —

Revenue (TTM)

Net income: —

Is the Multiple Justified?

July 12, 2026

NextEra Energy Inc. currently shows negative trailing twelve-month (TTM) earnings, which renders a traditional P/E multiple inapplicable and P/S also not available. However, recent financial disclosures provide a more nuanced picture. The company reported strong first-quarter 2026 results, with GAAP net income of $2.182 billion and adjusted earnings per share (EPS) increasing 10% year-over-year to $1.09, surpassing analyst expectations. This performance was driven by robust contributions from both its regulated utility, Florida Power & Light, and its renewable energy segment, NextEra Energy Resources, which achieved a record quarter for new renewables and storage origination. NextEra Energy has reaffirmed its long-term adjusted EPS growth target of 8%+ annually through 2035, supported by significant capital investments in energy infrastructure and a growing renewables backlog. The reported negative TTM earnings may reflect specific non-recurring charges or accounting adjustments in prior periods, contrasting with the company's positive adjusted earnings and optimistic forward guidance.

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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