As of September 12, 2025, Consolidated Edison Inc's estimated intrinsic value ranges from $103.49 to $298.31 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $178.87 | +83.1% |
| Discounted Cash Flow (5Y) | $131.45 | +34.5% |
| Dividend Discount Model (Multi-Stage) | $103.49 | +5.9% |
| Dividend Discount Model (Stable) | $105.60 | +8.1% |
| Earnings Power Value | $298.31 | +205.3% |
Is Consolidated Edison Inc (ED) undervalued or overvalued?
With the current market price at $97.70, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Consolidated Edison Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.48 | 0.58 |
| Cost of equity | 6.1% | 8.1% |
| Cost of debt | 4.0% | 4.9% |
| Tax rate | 14.4% | 15.4% |
| Debt/Equity ratio | 0.77 | 0.77 |
| After-tax WACC | 4.9% | 6.4% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $131 | $72,479M | 85.4% |
| 10-Year Growth | $179 | $89,580M | 74.2% |
| 5-Year EBITDA | $89 | $57,087M | 81.5% |
| 10-Year EBITDA | $123 | $69,533M | 66.7% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $7,361M |
| Discount Rate (WACC) | 6.4% - 4.9% |
| Enterprise Value | $115,279M - $150,033M |
| Net Debt | $25,071M |
| Equity Value | $90,208M - $124,962M |
| Outstanding Shares | 361M |
| Fair Value | $250 - $346 |
| Selected Fair Value | $298.31 |
| Metric | Value |
|---|---|
| Market Capitalization | $35236M |
| Enterprise Value | $60307M |
| Trailing P/E | 18.21 |
| Forward P/E | 17.55 |
| Trailing EV/EBITDA | 6.20 |
| Current Dividend Yield | 318.71% |
| Dividend Growth Rate (5Y) | 3.06% |
| Debt-to-Equity Ratio | 0.77 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $53.66 |
| Discounted Cash Flow (5Y) | 25% | $32.86 |
| Dividend Discount Model (Multi-Stage) | 20% | $20.70 |
| Dividend Discount Model (Stable) | 15% | $15.84 |
| Earnings Power Value | 10% | $29.83 |
| Weighted Average | 100% | $152.89 |
Based on our comprehensive valuation analysis, Consolidated Edison Inc's intrinsic value is $152.89, which is approximately 56.5% above the current market price of $97.70.
Key investment considerations:
Given these factors, we believe Consolidated Edison Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.