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Analyzing NRG Energy’s Current Valuation

Vincent Kruger
Analyzing NRG Energy’s Current Valuation

Currently, NRG Energy (NRG) stock is trading at an EV-to-EBITDA multiple of 11x—equal to its five-year historical average. The stock appears to be trading at a fair valuation. In comparison, AES (AES), one of the smallest constituents of the Utilities Select Sector SPDR ETF (XLU), is trading at a valuation of 8.6—higher than its historical average of ~8x. SCANA’s (SCG) EV-to-EBITDA multiple is 8.6x—lower than its historical average of 10.0x.