Eversource Energy Valuation

ES Stock  USD 59.77  0.79  1.34%   
At this time, the firm appears to be fairly valued. Eversource Energy shows a prevailing Real Value of $58.79 per share. The current price of the firm is $59.77. Our model computes the value of Eversource Energy from reviewing the firm fundamentals such as Profit Margin of (0.04) %, shares outstanding of 350.73 M, and Current Valuation of 46.44 B as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Fairly Valued
Today
59.77
Please note that Eversource Energy's price fluctuation is very steady at this time. Calculation of the real value of Eversource Energy is based on 3 months time horizon. Increasing Eversource Energy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Eversource Energy is useful when determining the fair value of the Eversource stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Eversource Energy. Since Eversource Energy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Eversource Stock. However, Eversource Energy's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  59.77 Real  58.79 Hype  59.77 Naive  58.53
The real value of Eversource Stock, also known as its intrinsic value, is the underlying worth of Eversource Energy Company, which is reflected in its stock price. It is based on Eversource Energy's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Eversource Energy's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Eversource Energy's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
58.79
Real Value
60.77
Upside
Estimating the potential upside or downside of Eversource Energy helps investors to forecast how Eversource stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Eversource Energy more accurately as focusing exclusively on Eversource Energy's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
56.6558.6260.60
Details
Hype
Prediction
LowEstimatedHigh
57.7959.7761.75
Details
Potential
Annual Dividend
LowForecastedHigh
1.651.751.85
Details

Eversource Energy Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Eversource Energy's current stock value. Our valuation model uses many indicators to compare Eversource Energy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Eversource Energy competition to find correlations between indicators driving Eversource Energy's intrinsic value. More Info.
Eversource Energy is one of the top stocks in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  0.07  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Eversource Energy is roughly  14.60 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Eversource Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Eversource Energy's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Eversource Energy's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Eversource Energy's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Eversource Energy and how it compares across the competition.

About Eversource Energy Valuation

The stock valuation mechanism determines the current worth of Eversource Energy on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Eversource Energy. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Eversource Energy based exclusively on its fundamental and basic technical indicators. By analyzing Eversource Energy's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Eversource Energy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Eversource Energy. We calculate exposure to Eversource Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Eversource Energy's related companies.
Eversource Energy, a public utility holding company, engages in the energy delivery business. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy operates under UtilitiesRegulated Electric classification in the United States and is traded on New York Stock Exchange. It employs 9227 people.

8 Steps to conduct Eversource Energy's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Eversource Energy's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Eversource Energy's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Eversource Energy's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Eversource Energy's revenue streams: Identify Eversource Energy's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Eversource Energy's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Eversource Energy's growth potential: Evaluate Eversource Energy's management, business model, and growth potential.
  • Determine Eversource Energy's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Eversource Energy's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Eversource Energy's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Eversource Energy's value is low or high relative to the company's performance and growth projections. Determining the market value of Eversource Energy can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Eversource Energy represents a small ownership stake in the entity. As a stockholder of Eversource, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Eversource Energy Dividends Analysis For Valuation

There are various types of dividends Eversource Energy can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Eversource shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Eversource Energy directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Eversource pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Eversource Energy by the value of the dividends paid out.

Eversource Energy Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Eversource Energy does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding349.6 M
Quarterly Earnings Growth Y O Y-0.03
Forward Price Earnings12.1951
When determining whether Eversource Energy is a strong investment it is important to analyze Eversource Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Eversource Energy's future performance. For an informed investment choice regarding Eversource Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Eversource Energy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as various price indices.
For more information on how to buy Eversource Stock please use our How to Invest in Eversource Energy guide.
You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Complementary Tools for Eversource Stock analysis

When running Eversource Energy's price analysis, check to measure Eversource Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Eversource Energy is operating at the current time. Most of Eversource Energy's value examination focuses on studying past and present price action to predict the probability of Eversource Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eversource Energy's price. Additionally, you may evaluate how the addition of Eversource Energy to your portfolios can decrease your overall portfolio volatility.
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Is Eversource Energy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Eversource Energy. If investors know Eversource will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Eversource Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Eversource Energy is measured differently than its book value, which is the value of Eversource that is recorded on the company's balance sheet. Investors also form their own opinion of Eversource Energy's value that differs from its market value or its book value, called intrinsic value, which is Eversource Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Eversource Energy's market value can be influenced by many factors that don't directly affect Eversource Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Eversource Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eversource Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eversource Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.