NRG Energy provides electricity, system power, distributed generation, solar and wind products, backup generation, storage and distributed solar, demand response, energy efficiency, and on-site energy solutions,carbon management and specialty services, and various energy services, such as operations, maintenance, technical, development and asset management services. The company was founded in 1989 and is based in Princeton, New Jersey.
NRG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NRG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Nrg Energy Inc ranked in the 79th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 462.5%. As for the metrics that stood out in our discounted cash flow analysis of Nrg Energy Inc, consider:
As a business, NRG is generating more cash flow than 77.84% of positive cash flow stocks in the Utilities.
Nrg Energy Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 2.46% of tickers in our DCF set.
Nrg Energy Inc's effective tax rate, as measured by taxes paid relative to net income, is at 174 -- greater than 98.6% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AY, BIP, AT, NEP, and CWEN can be thought of as valuation peers to NRG, in the sense that they are in the Utilities sector and have a similar price forecast based on DCF valuation.
Vistra (Formerly "Vistra Energy") (VST) hosted their annual Capital Allocation Plan this morning, outlining near term guidance for 2020 - 2021 as well as several core development plans stretching out to 2030. In this update, I will review the guidance, provide valuation estimates, and discuss the longer-term growth opportunities for...
In the Ruff Research on Seeking Alpha | September 29, 2020
NRG Energy (NRG) said it has entered into a definitive agreement to acquire Centrica PLC’s (CNA) North American subsidiary Direct Energy for $3.63 billion in an all-cash transaction.Upon closure, the transaction is expected to generate about $740 million in annual run-rate adjusted EBITDA, while enhancing free cash flow strength and stability and providing earnings diversification. NRG Energy shares rose 2.9% to $34.19, while Centrica jumped 19% to $2.36 at the close of U.S. trading on Friday.The deal will almost double the number of NRG’s retail customers by adding more than 3 million consumers across 50 U.S. states and Canada. The energy provider expects the combined company to create $300 million in annual run-rate synergies by leveraging NRG’s scalable operational platform and best...
Centrica Plc on Friday said it was selling its North American subsidiary Direct Energy for $3.63 billion to U.S. integrated power firm NRG Energy, clearing the way for the new head of the British Gas owner to focus on its home markets. The transaction was announced along with Centrica's half-year earnings, where the group reported a profit slump due to the COVID-19 impact and low commodity prices. Centrica's shares ended 16.7% higher, having surged almost 40% early on Friday, and NRG closed up 2.9%.