Xcel Energy Inc. (XEL) 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

-71.7%

$22.57

vs $79.89 price

Levered DCF

-$117.42

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.9

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	21.47×	19.63×	19.29×	22.12×	22.87×	23.81×	24.05×	19.95×
P/B	1.84×	1.95×	1.94×	2.3×	2.34×	2.41×	2.49×	2.06×
P/S	2.96×	2.83×	2.41×	2.5×	2.72×	3.05×	2.86×	2.18×
EV / EBITDA	12.56×	12.17×	11.85×	12.65×	13.27×	13.25×	12.92×	10.91×
Gross margin	47.2%	45.7%	42.1%	38.3%	39.1%	43.1%	41.0%	38.6%
Operating margin	19.6%	17.8%	17.5%	15.9%	16.4%	18.4%	18.2%	17.0%
Net margin	13.8%	14.4%	12.5%	11.3%	11.9%	12.8%	11.9%	10.9%
Current ratio	0.71×	0.67×	0.72×	0.85×	0.84×	0.77×	0.68×	0.69×
Debt / equity	1.47×	1.55×	1.56×	1.56×	1.58×	1.52×	1.54×	1.41×
Interest coverage	2.14×	2.02×	2.47×	2.62×	2.7×	2.63×	2.87×	3.01×
Dividend yield	3.0%	3.1%	3.2%	2.6%	2.6%	2.4%	2.4%	2.9%
Payout ratio	63.5%	60.7%	61.7%	58.3%	58.5%	58.1%	57.7%	57.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.5%	9.9%	10.1%	10.4%	10.2%	10.1%	10.4%	10.3%
Return on invested capital	3.8%	3.6%	4.1%	4.2%	4.0%	4.2%	4.1%	4.0%
Return on assets	2.5%	2.8%	2.8%	2.8%	2.8%	2.7%	2.7%	2.7%
Free cash flow yield	-15.7%	-7.2%	-1.5%	-1.8%	-5.6%	-7.2%	-2.9%	-3.3%
Earnings yield	4.7%	5.1%	5.2%	4.5%	4.4%	4.2%	4.2%	5.0%
Enterprise value	$77.9B	$68B	$61.6B	$64.3B	$61.1B	$57.2B	$53.2B	$42.3B
Net debt / EBITDA	5.57×	5.37×	5.27×	5.1×	5.34×	5.11×	4.91×	4.41×
Cash conversion cycle (days)	-18	1	13	20	16	13	9	16