As of May 26, 2026, Consolidated Edison Inc's estimated intrinsic value ranges from $93.47 to $355.11 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $155.38 | +43.2% |
| Discounted Cash Flow (5Y) | $118.08 | +8.8% |
| Dividend Discount Model (Multi-Stage) | $106.86 | -1.5% |
| Dividend Discount Model (Stable) | $93.47 | -13.9% |
| Earnings Power Value | $355.11 | +227.2% |
Is Consolidated Edison Inc (ED) undervalued or overvalued?
With the current market price at $108.54, 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 | 0.29 | 0.32 |
| Cost of equity | 5.2% | 6.6% |
| Cost of debt | 4.1% | 4.9% |
| Tax rate | 15.7% | 18.6% |
| Debt/Equity ratio | 0.7 | 0.7 |
| 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 | $118 | $70,027M | 81.5% |
| 10-Year Growth | $155 | $83,771M | 68.3% |
| 5-Year EBITDA | $111 | $67,285M | 80.7% |
| 10-Year EBITDA | $150 | $81,809M | 67.5% |
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 | $140,503M - $174,204M |
| Net Debt | $26,526M |
| Equity Value | $113,977M - $147,678M |
| Outstanding Shares | 368M |
| Fair Value | $309 - $401 |
| Selected Fair Value | $355.11 |
| Metric | Value |
|---|---|
| Market Capitalization | $39988M |
| Enterprise Value | $66514M |
| Trailing P/E | 18.56 |
| Forward P/E | 17.31 |
| Trailing EV/EBITDA | 7.00 |
| Current Dividend Yield | 298.09% |
| Dividend Growth Rate (5Y) | 3.15% |
| Debt-to-Equity Ratio | 0.70 |
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% | $46.61 |
| Discounted Cash Flow (5Y) | 25% | $29.52 |
| Dividend Discount Model (Multi-Stage) | 20% | $21.37 |
| Dividend Discount Model (Stable) | 15% | $14.02 |
| Earnings Power Value | 10% | $35.51 |
| Weighted Average | 100% | $147.04 |
Based on our comprehensive valuation analysis, Consolidated Edison Inc's intrinsic value is $147.04, which is approximately 35.5% above the current market price of $108.54.
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.