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Analyzing Top Utilities’ Current Valuation

Vincent Kruger
Analyzing Top Utilities’ Current Valuation

NextEra Energy (NEE), the biggest component of the Utilities ETF (XLU), is trading at an EV-to-EBITDA multiple of ~16x—higher than its five-year average valuation. Duke Energy (DUK) is trading at an EV-to-EBITDA multiple of 11.0x. Southern Company (SO) stock is trading at an EV-to-EBITDA multiple of 10.8x—lower than its five-year average.