NextEra Energy, Inc. (NEE) 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

+48.4%

$126.30

vs $85.09 price

Levered DCF

$32.17

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.04

Distress zone

Rating

A-

Overall 4 / 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	24.25×	21.21×	16.83×	39.77×	51.28×	51.78×	31.05×	12.38×
P/B	3.07×	2.94×	2.59×	4.2×	4.92×	4.14×	3.15×	2.41×
P/S	6.1×	5.96×	4.38×	7.87×	10.73×	8.4×	6.08×	4.92×
EV / EBITDA	16.24×	16.27×	11.55×	24.79×	27.42×	22.83×	15.02×	9.18×
Gross margin	62.8%	60.1%	63.9%	48.4%	50.2%	59.5%	58.3%	57.8%
Operating margin	30.1%	30.2%	36.4%	19.5%	17.1%	28.4%	27.9%	25.6%
Net margin	24.9%	28.1%	26.0%	19.8%	20.9%	16.2%	19.6%	39.7%
Current ratio	0.6×	0.47×	0.55×	0.51×	0.53×	0.47×	0.53×	0.36×
Debt / equity	1.75×	1.64×	1.54×	1.66×	1.47×	1.32×	1.15×	1.1×
Interest coverage	1.81×	3.35×	3.08×	6.98×	2.29×	2.62×	2.38×	2.86×
Dividend yield	2.8%	2.9%	3.1%	2.0%	1.7%	1.8%	2.1%	2.6%
Payout ratio	68.5%	61.0%	51.7%	80.8%	84.6%	94.0%	63.9%	31.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.5%	13.9%	15.4%	10.6%	9.6%	8.0%	10.2%	19.4%
Return on invested capital	4.2%	4.0%	5.5%	2.4%	2.0%	4.2%	4.3%	3.5%
Return on assets	3.2%	3.7%	4.1%	2.6%	2.5%	2.3%	3.2%	6.4%
Free cash flow yield	1.9%	3.2%	1.4%	-0.9%	-0.2%	0.1%	-2.5%	0.7%
Earnings yield	4.1%	4.7%	5.9%	2.5%	2.0%	1.9%	3.2%	8.1%
Enterprise value	$260.5B	$228.3B	$193.6B	$228.3B	$237.4B	$198.1B	$158.7B	$119.3B
Net debt / EBITDA	5.78×	5.76×	4.21×	6.88×	6.26×	5.41×	3.97×	2.85×
Cash conversion cycle (days)	-108	-106	-152	-121	-143	-93	-52	5