As of December 16, 2025, Consolidated Edison Inc's estimated intrinsic value ranges from $84.06 to $301.15 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $153.39 | +54.3% |
| Discounted Cash Flow (5Y) | $104.48 | +5.1% |
| Dividend Discount Model (Multi-Stage) | $98.40 | -1.0% |
| Dividend Discount Model (Stable) | $84.06 | -15.4% |
| Earnings Power Value | $301.15 | +203.0% |
Is Consolidated Edison Inc (ED) undervalued or overvalued?
With the current market price at $99.39, 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 | 0.44 | 0.56 |
| Cost of equity | 5.9% | 8.0% |
| Cost of debt | 4.0% | 4.9% |
| Tax rate | 14.4% | 15.4% |
| Debt/Equity ratio | 0.78 | 0.78 |
| After-tax WACC | 4.8% | 6.3% |
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 | $104 | $63,693M | 83.0% |
| 10-Year Growth | $153 | $81,343M | 69.9% |
| 5-Year EBITDA | $86 | $56,982M | 81.0% |
| 10-Year EBITDA | $126 | $71,430M | 65.7% |
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) | 6.3% - 4.8% |
| Enterprise Value | $116,575M - $152,777M |
| Net Debt | $25,980M |
| Equity Value | $90,595M - $126,797M |
| Outstanding Shares | 361M |
| Fair Value | $251 - $351 |
| Selected Fair Value | $301.15 |
| Metric | Value |
|---|---|
| Market Capitalization | $35874M |
| Enterprise Value | $61854M |
| Trailing P/E | 17.63 |
| Forward P/E | 17.63 |
| Trailing EV/EBITDA | 6.05 |
| Current Dividend Yield | 325.83% |
| Dividend Growth Rate (5Y) | 3.06% |
| Debt-to-Equity Ratio | 0.78 |
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% | $46.02 |
| Discounted Cash Flow (5Y) | 25% | $26.12 |
| Dividend Discount Model (Multi-Stage) | 20% | $19.68 |
| Dividend Discount Model (Stable) | 15% | $12.61 |
| Earnings Power Value | 10% | $30.11 |
| Weighted Average | 100% | $134.54 |
Based on our comprehensive valuation analysis, Consolidated Edison Inc's intrinsic value is $134.54, which is approximately 35.4% above the current market price of $99.39.
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.