NextEra Energy (NEE), the biggest constituent of the Utilities ETF (XLU), is trading at a forward PE ratio of 22x based on its projected earnings for 2019. NextEra Energy’s five-year historical average PE ratio is close to 20x. NextEra Energy stock seems to be trading at a premium compared to its historical average valuation. The peer average forward PE ratio is lower than NextEra Energy’s forward PE ratio. NextEra Energy appears to be expensive compared to its peers. The stock has rallied more than 15% in 2018—one of the highest rallies among top utilities.