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Arphra AIPlain-English read on WEC Energy Group, Inc.’s valuationOverview
Discounted cash flow
Income / accounting-based
Multiples & assets
Scenario
Toolbox
Weighted blend
$76.72
-30.92% vs spot
Sell
Spot price
$111.05
Mkt cap $36.17B
subtle cardAnalyst PT consensus
$122.78
+10.56% vs spot
subtle cardMethods covered
15 / 16
7 in blend
subtle cardFootball field
WEC · fair-value range by method
Method comparison
WEC · fair value by valuation framework
| Method | Category | Fair value | Range | vs spot | Weight | Driver | Conf. |
|---|---|---|---|---|---|---|---|
| DDM · Gordon | ddm | $73.58 | $60.49 – $93.91 | -33.74% | 13.3% | D₁ 3.33, kₑ 6.7%, gₗ 2.0% | med |
| DDM · H-model | ddm | $96.21 | $70.20 – $136.58 | -13.37% | — | D₀ 3.33, g₀=8.3%, gₗ=2.0%, H 5y | med |
| DDM · multi-stage | ddm | $84.99 | $72.24 – $97.73 | -23.47% | 24.0% | 5y schedule 8.3% → 2.0%, kₑ 6.7% | high |
| Residual income | income | $44.88 | $39.49 – $50.26 | -59.59% | 13.3% | BV 40.79, ROE 11.1% → kₑ | high |
| EVA / MVA | income | $164.85 | $145.07 – $184.63 | +48.44% | 6.7% | IC 36.3B, WACC 4.9% | high |
| P/E · sector | multiple | $86.94 | $76.51 – $97.37 | -21.71% | 16.0% | EPS 4.83 × peer P/E 18.0 | med |
| P/S · sector | multiple | $62.58 | $53.20 – $71.97 | -43.64% | — | Rev/sh 28.45 × peer P/S 2.20 | med |
| EV / EBITDA | multiple | $64.53 | $56.79 – $72.28 | -41.89% | 20.0% | EBITDA × peer 11.0× − ND 22.3B | high |
| EV / EBIT | multiple | $26.31 | $22.36 – $30.25 | -76.31% | — | EBIT × peer 13.2× − ND | med |
| EV / Sales | multiple | -$11.50 | -$9.77 – -$13.22 | -110.35% | — | Sales × peer 1.87× − ND | med |
| PEG-anchored | multiple | $76.79 | $65.27 – $88.31 | -30.85% | — | PEG=1, fwd EPS g 15.9% | med |
| Earnings power | intrinsic | $67.13 | $59.07 – $75.19 | -39.55% | — | NOPAT / WACC, no growth | med |
| Graham revised | intrinsic | $119.72 | $101.77 – $137.68 | +7.81% | — | EPS×(8.5+2g)·4.4/Y | low |
| Lynch P/E=g | intrinsic | $40.15 | $34.13 – $46.17 | -63.84% | — | PE = g (8.3) | low |
| Book NAV | asset | $40.79 | $38.75 – $42.83 | -63.27% | 6.7% | (Assets − Liabilities) / Shares | high |
| Liquidation | asset | — | — | — | — | Cash 100% + non-cash 70% − Liab. | low |
Cost-of-capital build-up
CAPM cost of equity, after-tax cost of debt, WACC. Risk-free as of 2026-05-12.
| Risk-free rate (US 10y Treasury)rf | 4.46% |
| Equity beta (0.49)β | × 0.49 |
| Equity risk premiumERP | 4.46% |
| Cost of equity (CAPM)kₑ | 6.66% |
| Pre-tax cost of debtkd | 4.01% |
| Effective tax ratet | 7.1% |
| After-tax cost of debt | 3.73% |
| Equity weight$14.1B | 38.6% |
| Debt weight$22.3B | 61.4% |
| WACC | 4.86% |
Growth assumptions
Blended forward growth used as DCF default; terminal pegged to long-run nominal GDP.
| Analyst forward revenue growthFMP | 2.39% |
| Analyst forward EPS growthFMP | 15.90% |
| Historical 5y revenue CAGRFY | 4.19% |
| Historical 5y EPS CAGRFY | 4.12% |
| Sustainable g (ROE × retention)Δ | 2.92% |
| Blended near-term growth (g₀) | 8.31% |
| Terminal growth (gₗ) | 2.04% |
Sources
- FMP /analyst-estimates— 8 rows(as of 2023-12-31)
- Treasury rates · 10y— 4.46% rf(as of 2026-05-12)
- market_risk_premium · DB— 4.46% ERP(as of 2026-05-13)
- Sector multiple defaults— Utilities (live sector PE unavailable)
- FMP /price-target-consensus— mean $122.78
This page is generated by a quantitative valuation engine for research purposes only and does not constitute investment advice. Methodology follows standard CFA / Damodaran frameworks; assumptions are driven by analyst consensus from Financial Modeling Prep and reported financial statements.