NextEra Energy (NEE), the biggest utility stock by market cap, is trading at a forward PE ratio of 20x based on analysts’ estimated EPS for the next year. Utilities’ average forward PE ratio is close to 15x. NextEra Energy appears to be trading at a large premium compared to its peers. NextEra Energy’s five-year historical average valuation is ~20x. NextEra Energy looks fairly valued compared to its historical average.