As of February 25, 2026, Consolidated Edison Inc's estimated intrinsic value ranges from $90.44 to $311.13 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $139.14 | +25.3% |
| Discounted Cash Flow (5Y) | $96.76 | -12.8% |
| Dividend Discount Model (Multi-Stage) | $95.02 | -14.4% |
| Dividend Discount Model (Stable) | $90.44 | -18.5% |
| Earnings Power Value | $311.13 | +180.3% |
Is Consolidated Edison Inc (ED) undervalued or overvalued?
With the current market price at $111.01, the stock appears to be moderately 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 | 0.37 | 0.47 |
| Cost of equity | 5.6% | 7.5% |
| Cost of debt | 4.0% | 4.9% |
| Tax rate | 14.4% | 15.4% |
| Debt/Equity ratio | 0.69 | 0.69 |
| After-tax WACC | 4.7% | 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 | $97 | $60,903M | 83.3% |
| 10-Year Growth | $139 | $76,200M | 70.4% |
| 5-Year EBITDA | $93 | $59,550M | 83.0% |
| 10-Year EBITDA | $130 | $72,789M | 69.0% |
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) | 6.1% - 4.7% |
| Enterprise Value | $119,887M - $156,669M |
| Net Debt | $25,980M |
| Equity Value | $93,907M - $130,689M |
| Outstanding Shares | 361M |
| Fair Value | $260 - $362 |
| Selected Fair Value | $311.13 |
| Metric | Value |
|---|---|
| Market Capitalization | $40068M |
| Enterprise Value | $66048M |
| Trailing P/E | 19.69 |
| Forward P/E | 20.28 |
| Trailing EV/EBITDA | 6.65 |
| Current Dividend Yield | 289.39% |
| Dividend Growth Rate (5Y) | 3.06% |
| Debt-to-Equity Ratio | 0.69 |
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% | $41.74 |
| Discounted Cash Flow (5Y) | 25% | $24.19 |
| Dividend Discount Model (Multi-Stage) | 20% | $19.00 |
| Dividend Discount Model (Stable) | 15% | $13.57 |
| Earnings Power Value | 10% | $31.11 |
| Weighted Average | 100% | $129.61 |
Based on our comprehensive valuation analysis, Consolidated Edison Inc's intrinsic value is $129.61, which is approximately 16.8% above the current market price of $111.01.
Key investment considerations:
Given these factors, we believe Consolidated Edison Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.