NextEra Energy Inc (NEE) 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 -20% for NEE.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.7% (average of 3 methods) values the shares at $66.02; the price of $79.26 is 20% above that value, and 81% of that value comes from beyond year five.
Leak Score 33/100 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 | NEE | XEL |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $79.26 | $72.06 |
| Intrinsic value | $66.02 | $66.77 |
| Margin of safety | -20% | -8% |
| Leak Score | 33/100 (10/12) | 37/100 (10/12) |
| Market cap | $165.3B | $45.0B |
| Revenue growth, 5 years | 9.2% | 4.9% |
| Operating margin | 26.8% | 21.2% |
| Net margin | 33.1% | 15.3% |
| Return on equity | 17.2% | 9.9% |
| Debt to equity | 1.93 | 1.73 |
| P/E | 17.8x | 19.7x |
| Forward P/E | 18.0x | 15.8x |
| P/B | 2.9x | 1.9x |
| Dividend yield | 3.1% | 3.3% |