As of April 4, 2026, WEC Energy Group Inc has a Discounted Cash Flow (DCF) derived fair value of $154.55 per share. With the current market price at $117.58, this represents a potential upside of 31.4%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $116.32 |
| DCF Fair Value (10-year) | $154.55 |
| Potential Upside (5-year) | -1.1% |
| Potential Upside (10-year) | 31.4% |
| Discount Rate (WACC) | 4.8% - 6.4% |
Revenue is projected to grow from $9507 million in 12-2025 to $19279 million by 12-2035, representing a compound annual growth rate of approximately 7.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2025 | 9507 | 13% |
| 12-2026 | 9992 | 5% |
| 12-2027 | 11566 | 16% |
| 12-2028 | 12067 | 4% |
| 12-2029 | 13134 | 9% |
| 12-2030 | 14136 | 8% |
| 12-2031 | 15352 | 9% |
| 12-2032 | 16119 | 5% |
| 12-2033 | 17256 | 7% |
| 12-2034 | 18361 | 6% |
| 12-2035 | 19279 | 5% |
Net profit margin is expected to improve from 16% in 12-2025 to 15% by 12-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2025 | 1556 | 16% |
| 12-2026 | 1525 | 15% |
| 12-2027 | 1765 | 15% |
| 12-2028 | 1841 | 15% |
| 12-2029 | 2004 | 15% |
| 12-2030 | 2157 | 15% |
| 12-2031 | 2343 | 15% |
| 12-2032 | 2460 | 15% |
| 12-2033 | 2633 | 15% |
| 12-2034 | 2802 | 15% |
| 12-2035 | 2942 | 15% |
with a 5-year average of $2920 million. Projected CapEx is expected to maintain at approximately 33% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2026 | 3125 |
| 12-2027 | 3417 |
| 12-2028 | 3662 |
| 12-2029 | 3948 |
| 12-2030 | 3996 |
| 12-2031 | 4348 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 72 |
| Days Inventory | 97 |
| Days Payables | 129 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 5594 | 234 | 3278 | (66) | 2147 |
| 2027 | 6275 | 271 | 3795 | 287 | 1922 |
| 2028 | 6644 | 283 | 3959 | 129 | 2273 |
| 2029 | 7194 | 308 | 4309 | 142 | 2434 |
| 2030 | 7489 | 331 | 4638 | 182 | 2338 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 116.32 | -1.1% |
| 10-Year DCF (Growth) | 154.55 | 31.4% |
| 5-Year DCF (EBITDA) | 75.96 | -35.4% |
| 10-Year DCF (EBITDA) | 112.82 | -4.0% |
Is WEC Energy Group Inc (WEC) a buy or a sell? WEC Energy Group Inc is definitely a buy. Based on our DCF analysis, WEC Energy Group Inc (WEC) appears to be significantly undervalued with upside potential of 31.4%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $117.58.