WEC Energy Group generates and distributes electric energy in Wisconsin and Michigan. The company generates electricity from coal, natural gas, oil, hydroelectric, wind, and biomass. The company was established in 2015 and is based in Milwaukee, Wisconsin.
WEC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Wec Energy Group Inc. To summarize, we found that Wec Energy Group Inc ranked in the 3th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Wec Energy Group Inc ended up being:
The company's compound free cash flow growth rate over the past 5.83 years comes in at -0.29%; that's greater than only 6.09% of US stocks we're applying DCF forecasting to.
Wec Energy Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 19.16% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 19.53% of stocks in its sector (Utilities).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Utilities that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WEC, try AES, AQN, ENIA, GWRS, and PEG.