NextEra Energy (NEE) is the largest utility by market cap. NextEra Energy stock is trading at a forward PE ratio of 22x based on analysts’ estimated earnings for the next year. NextEra Energy’s historical average valuation is ~20x. Broader utilities’ average forward PE ratio is close to 17x. The stock seems to be trading at a premium compared to its peers and its historical valuation. So far, NextEra Energy has rallied more than 16% in 2018.