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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

$171.59B

EPS (TTM): —

Revenue (TTM)

—

Net income: —

Is the Multiple Justified?

August 30, 2026

The provided data indicates NextEra Energy has negative TTM earnings, resulting in an undefined P/S multiple. This suggests recent profitability challenges. However, the company reported strong Q2 2026 adjusted earnings per share of $1.15, a 9.5% year-over-year increase, and Q1 2026 adjusted EPS of $1.09, up 10%. NextEra Energy has reaffirmed its 2026 adjusted EPS guidance, targeting the high end of $3.92–$4.02, and projects an 8%+ compound annual growth rate in adjusted EPS through 2032. The regulated utility segment, Florida Power & Light, continues to grow its customer base and capital investments, while NextEra Energy Resources is expanding its renewables and storage backlog. These recent positive results and long-term growth outlook in renewable energy and utility infrastructure may be viewed as foundational for future valuation.

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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