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Analyzing the Top Utilities’ Current Valuation

Analyzing the Top Utilities’ Current Valuation

The biggest constituent of the S&P 500 Utilities Index, NextEra Energy (NEE) is trading at a PE multiple just above 13x—lower compared to its five-year historical average. NextEra Energy is trading at an EV-to-EBITDA valuation multiple of 15.0x—compared to its five-year historical average of ~12.0x. NextEra Energy stock seems to be trading at a discount to its historical average.