NRG Energy, Inc. (NRG) 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

+109.1%

$199.87

vs $95.60 price

Levered DCF

$222.40

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.37

Distress zone

Rating

B-

Overall 3 / 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	38.93×	17.55×	-46.16×	6.15×	4.82×	18.05×	2.35×	45×
P/B	18.47×	7.5×	4.06×	1.96×	2.93×	5.48×	6.28×	-9.76×
P/S	1.01×	0.66×	0.41×	0.24×	0.39×	1.01×	1.06×	1.27×
EV / EBITDA	13.11×	9.03×	12.4×	5.56×	4.45×	8.33×	9.74×	12.08×
Gross margin	21.8%	21.4%	8.0%	13.0%	24.1%	28.1%	25.6%	25.0%
Operating margin	6.0%	8.6%	1.3%	6.4%	12.4%	12.2%	13.1%	10.4%
Net margin	2.8%	4.0%	-0.7%	3.9%	8.1%	5.6%	45.2%	2.8%
Current ratio	1.64×	1.02×	1.02×	1.25×	1.37×	3.15×	1.31×	1.5×
Debt / equity	9.97×	4.44×	3.78×	2.17×	2.3×	5.38×	3.89×	-5.28×
Interest coverage	2.4×	3.72×	0.58×	4.84×	6.89×	2.76×	3.12×	2.03×
Dividend yield	1.3%	2.2%	3.2%	4.4%	3.0%	3.2%	0.3%	0.3%
Payout ratio	47.6%	36.0%	-188.6%	27.2%	14.6%	57.8%	0.7%	13.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	51.4%	45.4%	-7.0%	31.9%	60.8%	30.4%	267.7%	-21.7%
Return on invested capital	7.0%	11.6%	2.1%	9.1%	16.6%	5.7%	12.5%	11.7%
Return on assets	3.0%	4.7%	-0.8%	4.2%	9.4%	3.4%	35.4%	2.5%
Free cash flow yield	2.5%	9.9%	-6.9%	-0.1%	2.1%	17.5%	11.4%	8.2%
Earnings yield	2.8%	6.1%	-1.7%	16.3%	20.7%	5.5%	42.6%	2.2%
Enterprise value	$43.1B	$28.6B	$22.2B	$15.4B	$18.6B	$14.3B	$16.5B	$18B
Net debt / EBITDA	3.66×	3.16×	5.82×	2.84×	1.92×	2.98×	3.6×	4×
Cash conversion cycle (days)	12	12	21	17	22	18	21	16