As of April 11, 2026, Consolidated Edison Inc's estimated intrinsic value ranges from $88.61 to $331.09 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $167.76 | +47.7% |
| Discounted Cash Flow (5Y) | $121.73 | +7.2% |
| Dividend Discount Model (Multi-Stage) | $111.01 | -2.2% |
| Dividend Discount Model (Stable) | $88.61 | -22.0% |
| Earnings Power Value | $331.09 | +191.6% |
Is Consolidated Edison Inc (ED) undervalued or overvalued?
With the current market price at $113.56, 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 | 0.39 | 0.47 |
| Cost of equity | 5.7% | 7.5% |
| Cost of debt | 4.1% | 4.9% |
| Tax rate | 15.7% | 18.6% |
| Debt/Equity ratio | 0.67 | 0.67 |
| After-tax WACC | 4.8% | 6.1% |
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 | $122 | $70,231M | 81.2% |
| 10-Year Growth | $168 | $86,863M | 68.6% |
| 5-Year EBITDA | $119 | $69,203M | 80.9% |
| 10-Year EBITDA | $160 | $84,152M | 67.6% |
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) | 6.1% - 4.8% |
| Enterprise Value | $128,098M - $163,648M |
| Net Debt | $26,250M |
| Equity Value | $101,848M - $137,398M |
| Outstanding Shares | 361M |
| Fair Value | $282 - $380 |
| Selected Fair Value | $331.09 |
| Metric | Value |
|---|---|
| Market Capitalization | $41029M |
| Enterprise Value | $67279M |
| Trailing P/E | 20.29 |
| Forward P/E | 18.03 |
| Trailing EV/EBITDA | 7.05 |
| Current Dividend Yield | 279.58% |
| Dividend Growth Rate (5Y) | 3.15% |
| Debt-to-Equity Ratio | 0.67 |
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% | $50.33 |
| Discounted Cash Flow (5Y) | 25% | $30.43 |
| Dividend Discount Model (Multi-Stage) | 20% | $22.20 |
| Dividend Discount Model (Stable) | 15% | $13.29 |
| Earnings Power Value | 10% | $33.11 |
| Weighted Average | 100% | $149.36 |
Based on our comprehensive valuation analysis, Consolidated Edison Inc's intrinsic value is $149.36, which is approximately 31.5% above the current market price of $113.56.
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.