Entergy Corp (ETR) is overvalued and Xcel Energy Inc (XEL) is slightly overvalued.
Both trade above our estimate of their intrinsic value. XEL is the closer of the two: -8%, against -33% for ETR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.0% (average of 2 methods) values the shares at $76.04; the price of $101.16 is 33% above that value.
Leak Score 40/100 on 10 of 12 signals
Discounting its cash flows at 7.7% (average of 2 methods) values the shares at $66.77; the price of $72.06 is 8% above that value.
Leak Score 37/100 on 10 of 12 signals
| Metric | ETR | XEL |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $101.16 | $72.06 |
| Intrinsic value | $76.04 | $66.77 |
| Margin of safety | -33% | -8% |
| Leak Score | 40/100 (10/12) | 37/100 (10/12) |
| Market cap | $48.3B | $45.0B |
| Revenue growth, 5 years | 5.4% | 4.9% |
| Operating margin | 22.2% | 21.2% |
| Net margin | 13.3% | 15.3% |
| Return on equity | 10.4% | 9.9% |
| Debt to equity | 1.88 | 1.73 |
| P/E | 25.9x | 19.7x |
| Forward P/E | 19.8x | 15.8x |
| P/B | 2.6x | 1.9x |
| Dividend yield | 2.5% | 3.3% |