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Wondering if Eversource Energy at about $67 a share is still good value after its recent rebound, or if you have already missed the easy money? This breakdown will help you cut through the noise.
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The stock is up 17.1% year to date and 22.9% over the past year, even though it has only nudged 2.3% higher over the last month and is roughly flat over the past week. This hints that sentiment has shifted meaningfully from where it was a few years ago, despite 3 and 5 year returns still being negative.
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Investors have been reacting to a mix of regulatory developments, ongoing grid modernization plans, and progress on trimming exposure to higher risk legacy assets. All of these factors affect how dependable future cash flows might be. At the same time, sector wide interest in steady dividend paying utilities has resurfaced as markets reprice interest rate expectations, which has helped to pull Eversource along with its peers.
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On our valuation checks, Eversource scores a 4/6 value score, suggesting it screens as undervalued on most but not all metrics. The next step is to unpack what that actually means across different valuation approaches and then look at a more nuanced way to think about fair value that we will come back to at the end of this article.
Eversource Energy delivered 22.9% returns over the last year. See how this stacks up to the rest of the Electric Utilities industry.
A Discounted Cash Flow model estimates what a company is worth by projecting the cash it can generate in the future and discounting those cash flows back into today’s dollars. For Eversource Energy, the 2 Stage Free Cash Flow to Equity model starts from its latest twelve month free cash flow of about $0.81 billion outflow and then applies analyst forecasts and extrapolated trends.
Analysts currently see free cash flow improving to around $517 million by 2027, with Simply Wall St extending those projections further so that by 2035 Eversource is expected to be generating roughly $4.54 billion in free cash each year. Aggregating and discounting this cash flow profile gives an estimated intrinsic value of about $173.72 per share.
Compared with the recent share price near $67, the DCF implies the stock is roughly 61.3% undervalued. This suggests the market is still heavily discounting Eversource’s long term cash generation potential.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Eversource Energy is undervalued by 61.3%. Track this in your watchlist or portfolio, or discover 902 more undervalued stocks based on cash flows.
ES Discounted Cash Flow as at Dec 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Eversource Energy.
For a mature, profitable utility like Eversource, the price to earnings, or PE, ratio is a useful way to gauge how much investors are willing to pay for each dollar of current earnings. What counts as a normal or fair PE depends on how fast earnings are expected to grow and how risky those earnings are, with faster growth and lower risk usually justifying a higher multiple.
Eversource currently trades on a PE of about 18.8x, which is roughly in line with both its peer group at 18.4x and the broader Electric Utilities industry at around 19.6x. Simply Wall St also calculates a Fair Ratio of 24.8x for Eversource, a proprietary estimate of what its PE should be given its growth outlook, margins, size and risk profile. This metric goes a step beyond simple peer or industry comparisons because it adjusts for the specific characteristics that drive what investors might reasonably pay for this business.
With the current 18.8x PE sitting noticeably below the 24.8x Fair Ratio, the multiple-based view suggests Eversource is trading at a discount to where it arguably should be.
Result: UNDERVALUED
NYSE:ES PE Ratio as at Dec 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1460 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. This is a simple framework on Simply Wall St’s Community page where you describe the story you believe about Eversource Energy, translate that story into assumptions for future revenue, earnings and margins, and then see the fair value that falls out of those numbers.
A Narrative links three things together: what is happening in the business, how that should shape a financial forecast, and what that implies for a fair value you can directly compare to today’s share price to decide whether you want to buy, hold or sell.
Because Narratives on the platform are dynamic, they automatically update when new information like earnings, guidance changes or major news comes in. This means your story and valuation stay current without you needing to rebuild a spreadsheet each time.
For Eversource Energy, one investor might lean into the bullish view that grid modernization, supportive regulation and long term electrification trends justify a fair value closer to the optimistic 87 dollars target. Another might focus on regulatory risk, financing pressures and execution uncertainty and decide the more conservative 47 dollars view better reflects their expectations.
Do you think there’s more to the story for Eversource Energy? Head over to our Community to see what others are saying!
NYSE:ES 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ES.
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