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:
We started the process of determining a valid price forecast for Wec Energy Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Wec Energy Group Inc ranked in the 3th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 99%. As for the metrics that stood out in our discounted cash flow analysis of Wec Energy Group Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 3.84 -- which is good for besting 71.35% of its peer stocks (US stocks in the Utilities sector with positive cash flow).
Its compound free cash flow growth rate, as measured over the past 5.7 years, is -0.25% -- higher than only 5.82% of stocks in our DCF forecasting set.
Wec Energy Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 10.43% of tickers in our DCF set.
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 AQN, NWE, GWRS, ENIA, and EVRG.
WEC Energy Group, Inc. (WEC) Q2 2020 Earnings Conference Call August 04, 2020, 02:00 PM ET Company Participants Gale Klappa - Executive Chairman Kevin Fletcher - President and CEO Scott Lauber - COO Beth Straka - SVP, Corporate Communications and Investor Relations Xia Liu - EVP and CFO Conference Call...
WEC Energy Group (NYSE: WEC) announced new environmental goals that call for the company's electric generation fleet to be net carbon neutral by 2050. The company is also targeting an interim goal of reducing carbon dioxide emissions by 70 percent below 2005 levels by 2030. The goals are detailed in the company's Corporate Responsibility Report, released today.