As of April 4, 2026, WEC Energy Group Inc's estimated intrinsic value ranges from $106.40 to $154.55 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $154.55 | +31.4% |
| Discounted Cash Flow (5Y) | $116.32 | -1.1% |
| Dividend Discount Model (Multi-Stage) | $106.40 | -9.5% |
| Dividend Discount Model (Stable) | $106.44 | -9.5% |
| Earnings Power Value | $120.45 | +2.4% |
Is WEC Energy Group Inc (WEC) undervalued or overvalued?
With the current market price at $117.58, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate WEC Energy Group 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 | 0.39 | 0.48 |
| Cost of equity | 5.7% | 7.6% |
| Cost of debt | 4.0% | 5.1% |
| Tax rate | 13.1% | 13.3% |
| Debt/Equity ratio | 0.6 | 0.6 |
| After-tax WACC | 4.8% | 6.4% |
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 | $116 | $60,152M | 83.9% |
| 10-Year Growth | $155 | $72,596M | 72.9% |
| 5-Year EBITDA | $76 | $47,015M | 79.4% |
| 10-Year EBITDA | $113 | $59,012M | 66.7% |
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 | $3,387M |
| Discount Rate (WACC) | 6.4% - 4.8% |
| Enterprise Value | $53,070M - $69,925M |
| Net Debt | $22,287M |
| Equity Value | $30,784M - $47,638M |
| Outstanding Shares | 326M |
| Fair Value | $95 - $146 |
| Selected Fair Value | $120.45 |
| Metric | Value |
|---|---|
| Market Capitalization | $38276M |
| Enterprise Value | $60562M |
| Trailing P/E | 24.56 |
| Forward P/E | 25.10 |
| Trailing EV/EBITDA | 6.90 |
| Current Dividend Yield | 308.32% |
| Dividend Growth Rate (5Y) | 7.65% |
| Debt-to-Equity Ratio | 0.60 |
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% | $46.36 |
| Discounted Cash Flow (5Y) | 25% | $29.08 |
| Dividend Discount Model (Multi-Stage) | 20% | $21.28 |
| Dividend Discount Model (Stable) | 15% | $15.97 |
| Earnings Power Value | 10% | $12.05 |
| Weighted Average | 100% | $124.73 |
Based on our comprehensive valuation analysis, WEC Energy Group Inc's intrinsic value is $124.73, which is approximately 6.1% above the current market price of $117.58.
Key investment considerations:
Given these factors, we believe WEC Energy Group Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.