Market Pulse59Neutral

NextEra Energy, Inc.Opportunity Rank #68(NEE) Intrinsic Value & DCF Analysis (2026)

Sector: Utilities

Current Price

$93.32

Last updated: May 08, 2026

Price vs Intrinsic Value

$93.32
Price
$155.76
Intrinsic Value
Undervalued by 67%MOS: $124.61

Fundamental Score

54/100
Neutral

Weighted across 6 signals

Narrative Score

74/100
Strong

No change vs previous

Trend Score

55/100
Constructive

As of 2026-05-08

The intrinsic value of NextEra Energy, Inc. (NEE) is estimated at $155.76 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $93.32, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.85% long-term growth rate and an 8.50% discount rate (calculated: 6.65%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of NextEra Energy, Inc. (NEE) is estimated at $155.76 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $93.32, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.85% long-term growth rate and an 8.50% discount rate (calculated: 6.65%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$155.76
▲ 66.91% upside
20% margin of safety: $124.61
Years: 10Growth Rate: 4.85%
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Capital Efficiency

Average Quarterly ROIC
1.93%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

54/100
NeutralWeighted across 6 signals
DCF Discount
66.9% discount to price
100
FCF Yield
11.5% trailing FCF yield
100
ROIC vs WACC
ROIC 1.9% vs WACC 11.0% (0.2x)
9
Net Debt / FCF
4.6x net debt to FCF
0
Buybacks
Share count flat
50
FCF CAGR (5Y)
7.2% 5Y FCF CAGR
61
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

74/100
Strong
Vs 6-Month Baseline:Average (57th pct)Weighted across 5 recent drivers
Trend: Deteriorating downConfidence: 87%Updated: 18h ago
Sources: 140 (133 News · 7 Analyst)
Drivers(last 30 days)
81 news sentiment+2.0
48 regulatory scrutiny+0.3
2 upgrade headlines+0.1
2 earnings beat-0.0
7 analyst reiterations0.0

Trend Details

55/100
ConstructiveAs of 2026-05-08311 daily bars used
Distance from 52-Week High-4.9%
21 EMA vs 50 EMA+1.6%
6M Relative Strength vs SPY+4.5%
Price vs 21 EMA43 · -1.1%
Price vs 50 EMA52 · +0.4%
21 EMA vs 50 EMA63 · +1.6%
3M RS vs SPY39 · -2.7%
6M RS vs SPY62 · +4.5%
Distance from 52W High90 · -4.9%

Investment Coach

Updating... 1d ago
BUYConfidence: 55%
Thesis
NextEra Energy, Inc. is undervalued with an estimated fair value 72% above its current price, supported by a healthy free cash flow yield of 11.5% and a stable narrative score. Despite trailing returns relative to its cost of capital, the company's strong discounted cash flow and cash flow growth metrics suggest potential for appreciation.
Key Risk
The key risk is the company's return on invested capital significantly trailing its weighted average cost of capital, indicating potential value destruction.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 4.85%5 Year CAGR: 7.71%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$22,297$21,759$21,774$20,849$18,004$15,383$15,742$19,232$12,603$11,858$10,576$9,988$9,003$8,326$8,862$8,101$6,781$7,439$5,677$5,450$4,324

How Intrinziq Estimates Fair Value

Intrinziq estimates NextEra Energy, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

NextEra Energy, Inc.Utilities

NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, coal, and natural gas facilities. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. As of December 31, 2021, the company had approximately 28,564 megawatts of net generating capacity; approximately 77,000 circuit miles of transmission and distribution lines; and 696 substations. It serves approximately 11 million people through approximately 5.7 million customer accounts in the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. The company was founded in 1925 and is headquartered in Juno Beach, Florida.