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Nextera Energy Inc (NEE) Fair Value & Analysis

Utilities · US · Market cap $186B · ISIN US65339F1012

What is Nextera Energy Inc really worth?

NE Nextera Energy Inc logo Nextera Energy Inc NEE · US
Price$84.06
Fair Value$32.94
Upside−60.8%
Quality47/100

Below-average quality, and trading another 155% above our fair value of $32.94.

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Strengths

Highly profitable · 29.4% net margin
Wide moat 70/100

Risks

!Expensive Growth (revenue 5y +8.8 %/yr)
!High debt · generates free cash flow
!Trails peers (5/15)
!Weak on balance sheet: 18 out of 100

For context

·2.76% dividend yield
Evidence: High Range $24.70 – $46.73

Fair value as of: Aug 29, 2026

From 24 valuation models · updated 6 days ago

Share price −3.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($46.73). The favourable scenario is already priced in.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($24.70 to $46.73) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$97.17 $45.46 Fair Value $32.94 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range $45.46 – $97.17 · fair‑value band $24.70 – $46.73 · the $84.06 price screens above the $32.94 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.

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Analysis

Nextera Energy Inc (NEE) currently trades at $84.06, while our model-based Fair Value estimate is $32.94, implying the stock looks roughly 155.2% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of $50.39 per share, and 0 of the 17 models we run sit above the $84.06 price. Bear case: the DCF Models group reads lowest at $8.19, and 17 of the 17 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Nextera Energy Inc generated revenue of $27.9B at a net margin of 29.4%. Revenue grew 7.3% year over year. It earns a return on equity of 10.3%. Net debt stands at $92.8B. Fundamentals as of Aug 29, 2026

Our scenario range runs from $24.70 (bear case) to $46.73 (bull case); at $84.06, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 14% below its 52-week high and 29% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −37% fair-value upside, at −61%, NEE screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $1.10 per share, which is 3.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income $24.67 $28.99 $50.30 74
Owner Earnings $10.62 73
5Y EBITDA Exit $21.41 $51.20 72
All 24 models by family
DCF Models
Owner Earnings $10.62 73
5Y Revenue Exit $5.60 69
5Y EBITDA Exit $21.41 $51.20 72
5Y P/E Exit $10.60 $32.19 68
10Y Revenue Exit $0.7700 64
10Y EBITDA Exit $8.19 $34.65 65
10Y P/E Exit $0.8000 $20.53 61
Earnings-Based
Graham-Dodd $22.28 $59.46 $77.78 65
Lynch FV $11.54 $16.48 $21.43 61
PEG = 1.0 $11.54 $16.48 $21.43 57
EPV $3.07 68
Dividend Discount
Gordon GGM $20.60 $42.84 $67.96 66
DDM Multi-Stage $20.60 $31.96 $44.09 66
Multiples
P/E Multiple $44.24 $58.98 $73.73 63
P/S Multiple $24.70 $32.94 $41.17 58
P/B Multiple $35.35 $47.13 $58.91 55
EV/EBIT $3.07 $17.96 $32.85 58
EV/EBITDA $13.14 $31.39 $49.63 63
EV/Revenue $1.22 50
Asset-Based
NCAV (Graham) $13.09 $17.54 $26.18 54
Growth DCF
Rev-Margin DCF $3.78 69
Economic Profit
Residual Income $24.67 $28.99 $50.30 74
ROIC Compounder $3.07 68
Growth Earnings
Growth-Adj P/E $35.27 $50.39 $65.50 67

Widest divergence: Growth Earnings ($50.39) versus DCF Models ($8.19). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 21.3
P/S ratio 5.31 P/E × margin
EPS (TTM) $3.94 price ÷ EPS = P/E 21.3
Dividend yield 2.8% payout 59.0%
Net margin 24.9% FY2025
Return on equity 10.3% TTM
More key figures
Profitability
Return on assets (EBIT) 3.8% avg 5y
Operating margin 30.2% TTM
Growth
Revenue (TTM) $27.9B TTM
Revenue growth (YoY) +7.3% 3y avg +9.4%
EPS growth (YoY) +160%
Balance sheet & cash flow
Free cash flow $3.2B FY2025
Net debt $92.8B FY2025 · ≈ 28.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 44 · Market factors (momentum, volatility) 60

Profitability 40
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 13
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 55
Distance to the 52-week high (market factor)
Net Issuance 65
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

NextEra Energy, Inc., through its subsidiaries, generates, stores, transmits, distributes, and sells electric power to retail and wholesale customers in North America. It operates through Florida Power & Light Company (FPL) and NEER segments. The company generates electricity from wind, solar, nuclear, natural gas, and other clean energy assets.

Full company description

NextEra Energy, Inc., through its subsidiaries, generates, stores, transmits, distributes, and sells electric power to retail and wholesale customers in North America. It operates through Florida Power & Light Company (FPL) and NEER segments. The company generates electricity from wind, solar, nuclear, natural gas, and other clean energy assets. It also invests in generation, storage, transmission, and distribution facilities; owns, develops, constructs, manages, and operates generation facilities, including renewables, nuclear and natural gas, and battery storage facilities in the wholesale energy market in the United States and Canada, as well as electric and gas transmission assets, and natural gas pipelines; provides full energy and capacity requirement services; markets and trades in energy-related commodities; and participates in the production of natural gas, natural gas liquids, and oil. As of December 31, 2025, the company had approximately 35,963 megawatts of net generating capacity; approximately 93,000 circuit miles of transmission and distribution lines; and 932 substations. It serves approximately 12 million people through approximately 6 million customer accounts on the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Nextera Energy Inc reported revenue of $27.5B in FY2025 versus $17.1B in FY2021, a compound +12.6%/yr. Reported net income was $6.8B in FY2025, compounding +17.6%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$27.5B
Latest YoY
+11.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.4%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.8%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+9.8% (7.0 + 2.8)
Revenue +12.6%/yr
FY21 $17.1B
FY22 $21.0B
FY23 $28.1B
FY24 $24.8B
FY25 $27.5B
Net income +17.6%/yr
FY21 $3.6B
FY22 $4.1B
FY23 $7.3B
FY24 $6.9B
FY25 $6.8B
Character of growth · EPS growth decomposed (2014-2025) +9.7 % p.a.
Revenue per share +3.8 %

of which total revenue +5.3 % · buybacks/dilution −1.3 %

EBIT margin +2.2 %
Tax rate +4.0 %
Residual (interest, one-offs) −0.7 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

NEE screens 155% overvalued. Compare with The Southern Company →

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Cite: Fair Value Calculator (2026). "Nextera Energy Inc Fair Value". https://www.fairvalue-calculator.com/stock/NEE

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Utilities - Regulated Electric · 153 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 47 · Below median
Fair Value upside −61% · Bottom 25%
Return on equity (TTM) 10% · Above median
Return on assets 2% · Below median
Net margin (TTM) 29% · Top 25%
Operating margin (TTM) 30% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 2.8% · Below median
Debt / equity 1.64× · Higher than 75% of peers

Valuation Multiples vs Utilities - Regulated Electric median · lower = cheaper

P/E (TTM) 21.3× · Pricier than median
P/B 3.41× · Pricier than 75% of peers
P/S (TTM) 6.69× · Pricier than 75% of peers
P/FCF 58.0× · Pricier than 75% of peers
EV/EBITDA 19.3× · Pricier than 75% of peers
PEG 1.95× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE37 · sector 32
PAST41 · sector 39
HEALTH18 · sector 52
DIVIDEND55 · sector 65

VALUE 0: the price sits above our fair-value range.

Insider activity: 42/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
The Southern Company SO $88.25 $58.81 −33%
Duke Energy Corporation DUK $120.25 $74.89 −38%
National Grid plc NGG $80.68 $63.94 −21%
American Electric Power Company AEP $122.96 $77.23 −37%
Dominion Energy, Inc D $66.01 $46.34 −30%
Entergy Corporation ETR $105.75 $52.92 −50%
Xcel Energy Inc XEL $76.34 $44.61 −42%
Exelon Corporation EXC $43.96 $37.60 −14%
Endesa, S.A ELE €42.30 €25.72 −39%
Consolidated Edison, Inc ED $107.70 $62.35 −42%

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Frequently asked questions

Is Nextera Energy Inc (NEE) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of $32.94 versus a price of $84.06, about −61% upside (overvalued).
What is the fair value of NEE?
Our model-based fair value for Nextera Energy Inc is $32.94 (as of Aug 29, 2026), built from audited fundamentals. The current price: $84.06.
What is the quality score of NEE?
Nextera Energy Inc has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Nextera Energy Inc (NEE)?
Nextera Energy Inc reported trailing-twelve-month revenue of about $27.9B (latest available figure, as of Aug 29, 2026).
What is the net profit margin of NEE?
The net profit margin of Nextera Energy Inc is about 29.4%, meaning it keeps roughly 29.4% of revenue as net income. Based on the latest reported figures.
Does Nextera Energy Inc pay a dividend?
Nextera Energy Inc currently shows a dividend yield of about 2.76% relative to its recent price (as of Aug 29, 2026).
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