As of July 10, 2026, Consolidated Edison Inc's estimated intrinsic value ranges from $104.14 to $352.73 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $173.98 | +57.8% |
| Discounted Cash Flow (5Y) | $136.91 | +24.2% |
| Dividend Discount Model (Multi-Stage) | $115.80 | +5.0% |
| Dividend Discount Model (Stable) | $104.14 | -5.6% |
| Earnings Power Value | $352.73 | +219.9% |
Is Consolidated Edison Inc (ED) undervalued or overvalued?
With the current market price at $110.27, 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 | 0.19 | 0.22 |
| Cost of equity | 5.2% | 6.6% |
| Cost of debt | 4.1% | 4.9% |
| Tax rate | 15.7% | 18.6% |
| Debt/Equity ratio | 0.66 | 0.66 |
| After-tax WACC | 4.5% | 5.6% |
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 | $137 | $76,980M | 83.2% |
| 10-Year Growth | $174 | $90,643M | 70.7% |
| 5-Year EBITDA | $109 | $66,831M | 80.6% |
| 10-Year EBITDA | $149 | $81,262M | 67.3% |
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 | $7,813M |
| Discount Rate (WACC) | 5.6% - 4.5% |
| Enterprise Value | $140,155M - $172,884M |
| Net Debt | $26,526M |
| Equity Value | $113,629M - $146,358M |
| Outstanding Shares | 369M |
| Fair Value | $308 - $397 |
| Selected Fair Value | $352.73 |
| Metric | Value |
|---|---|
| Market Capitalization | $40638M |
| Enterprise Value | $67164M |
| Trailing P/E | 18.86 |
| Forward P/E | 17.59 |
| Trailing EV/EBITDA | 6.95 |
| Current Dividend Yield | 283.75% |
| Dividend Growth Rate (5Y) | 3.15% |
| Debt-to-Equity Ratio | 0.66 |
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% | $52.19 |
| Discounted Cash Flow (5Y) | 25% | $34.23 |
| Dividend Discount Model (Multi-Stage) | 20% | $23.16 |
| Dividend Discount Model (Stable) | 15% | $15.62 |
| Earnings Power Value | 10% | $35.27 |
| Weighted Average | 100% | $160.47 |
Based on our comprehensive valuation analysis, Consolidated Edison Inc's intrinsic value is $160.47, which is approximately 45.5% above the current market price of $110.27.
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.