FirstEnergy Corp. (FE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-297.9%

-$93.80

vs $47.39 price

Levered DCF

-$148.33

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.71

Distress zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	25.29×	23.4×	19.09×	59.07×	17.7×	15.38×	28.59×	18.87×
P/B	2.06×	1.84×	2.01×	2.36×	2.61×	2.29×	3.73×	2.71×
P/S	1.71×	1.7×	1.63×	1.92×	2.04×	1.54×	2.36×	1.64×
EV / EBITDA	12.26×	11.46×	12.14×	12.25×	10.51×	11.69×	14.06×	9.53×
Gross margin	54.8%	67.5%	63.9%	63.1%	69.1%	71.5%	69.0%	67.6%
Operating margin	18.8%	17.6%	17.6%	15.3%	15.5%	20.0%	22.7%	22.2%
Net margin	6.8%	7.3%	8.6%	3.3%	11.5%	10.0%	8.3%	12.0%
Current ratio	0.57×	0.56×	0.48×	0.61×	0.73×	0.74×	0.5×	0.51×
Debt / equity	2.16×	1.95×	2.39×	2.13×	2.75×	3.38×	3.01×	2.86×
Interest coverage	2.49×	2.35×	2.21×	2×	1.62×	2.19×	2.61×	2.38×
Dividend yield	3.9%	4.2%	4.3%	3.7%	3.7%	5.1%	3.2%	4.2%
Payout ratio	99.6%	99.2%	82.2%	219.5%	66.2%	78.3%	89.9%	57.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.2%	7.9%	10.6%	4.0%	14.8%	14.9%	13.1%	19.8%
Return on invested capital	4.5%	3.7%	4.1%	1.4%	3.2%	4.6%	5.2%	4.5%
Return on assets	1.8%	1.9%	2.3%	0.9%	2.8%	2.4%	2.2%	3.4%
Free cash flow yield	-3.9%	-5.0%	-9.4%	-0.3%	1.6%	-7.4%	-0.8%	-6.8%
Earnings yield	3.9%	4.3%	5.2%	1.7%	5.7%	6.5%	3.5%	7.3%
Enterprise value	$52.8B	$47B	$45.8B	$45.4B	$45.1B	$39.3B	$46.4B	$37.6B
Net debt / EBITDA	6.26×	5.89×	6.57×	5.79×	5.22×	6.76×	6.17×	4.85×
Cash conversion cycle (days)	-27	-36	-22	-40	-30	-12	-34	-22