As of October 8, 2026, Consolidated Edison Inc's estimated intrinsic value ranges from $97.37 to $360.21 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $164.72 | +57.4% |
| Discounted Cash Flow (5Y) | $123.87 | +18.4% |
| Dividend Discount Model (Multi-Stage) | $116.07 | +10.9% |
| Dividend Discount Model (Stable) | $97.37 | -6.9% |
| Earnings Power Value | $360.21 | +244.2% |
Is Consolidated Edison Inc (ED) undervalued or overvalued?
With the current market price at $104.64, 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 | 0.18 | 0.2 |
| Cost of equity | 5.2% | 6.5% |
| 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% | 5.5% |
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 | $124 | $71,994M | 82.6% |
| 10-Year Growth | $165 | $87,048M | 69.0% |
| 5-Year EBITDA | $110 | $66,946M | 81.3% |
| 10-Year EBITDA | $149 | $81,280M | 66.8% |
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) | 5.5% - 4.5% |
| Enterprise Value | $143,233M - $174,954M |
| Net Debt | $26,344M |
| Equity Value | $116,889M - $148,610M |
| Outstanding Shares | 369M |
| Fair Value | $317 - $403 |
| Selected Fair Value | $360.21 |
| Metric | Value |
|---|---|
| Market Capitalization | $38563M |
| Enterprise Value | $64907M |
| Trailing P/E | 17.39 |
| Forward P/E | 16.49 |
| Trailing EV/EBITDA | 6.60 |
| Current Dividend Yield | 306.46% |
| 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% | $49.42 |
| Discounted Cash Flow (5Y) | 25% | $30.97 |
| Dividend Discount Model (Multi-Stage) | 20% | $23.21 |
| Dividend Discount Model (Stable) | 15% | $14.61 |
| Earnings Power Value | 10% | $36.02 |
| Weighted Average | 100% | $154.22 |
Based on our comprehensive valuation analysis, Consolidated Edison Inc's intrinsic value is $154.22, which is approximately 47.4% above the current market price of $104.64.
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.