Latest Ratios: P/E Ratio 24.4x · EV/EBITDA 8.6x · ROE 41.5%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.6B | $31.7B | $19.1B | $11.8B | $7.5B | $10.6B | $9.2B | $10.5B | $12.2B | $9.0B | $3.9B |
| Enterprise Value | $32.7B | $43.7B | $29.2B | $22.2B | $15.4B | $18.6B | $14.4B | $16.6B | $18.2B | $24.4B | $21.1B |
| P/E Ratio → | 24.40 | 39.71 | 18.08 | — | 6.15 | 4.82 | 18.14 | 2.36 | 45.52 | — | — |
| P/S Ratio | 0.67 | 1.03 | 0.68 | 0.41 | 0.24 | 0.39 | 1.02 | 1.07 | 1.29 | 0.99 | 0.43 |
| P/B Ratio | 11.58 | 18.85 | 7.72 | 4.06 | 1.96 | 2.93 | 5.50 | 6.25 | — | 4.41 | 0.86 |
| P/FCF | 26.95 | 41.37 | 10.43 | — | — | — | 6.88 | 5.33 | 12.33 | 9.30 | 3.48 |
| P/OCF | 10.79 | 16.56 | 8.29 | — | 20.86 | 21.41 | 5.03 | 7.43 | 8.86 | 6.51 | 1.87 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.42 | 1.04 | 0.77 | 0.49 | 0.69 | 1.58 | 1.69 | 1.92 | 2.69 | 2.37 |
| EV / EBITDA | 8.59 | 11.49 | 7.62 | 13.23 | 5.62 | 4.45 | 8.64 | 9.29 | 11.93 | — | 22.91 |
| EV / EBIT | 17.66 | 23.63 | 13.89 | 48.94 | 7.39 | 5.56 | 12.37 | 13.84 | 19.11 | — | — |
| EV / FCF | — | 57.07 | 15.90 | — | — | — | 10.70 | 8.43 | 18.36 | 25.17 | 19.00 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.8% | 21.8% | 21.4% | 8.0% | 13.0% | 24.1% | 28.1% | 25.6% | 25.0% | 24.1% | 25.1% |
| Operating Margin | 6.0% | 6.0% | 8.6% | 1.3% | 6.4% | 12.4% | 12.2% | 13.1% | 10.4% | -8.2% | 0.4% |
| Net Profit Margin | 2.8% | 2.8% | 4.0% | -0.7% | 3.9% | 8.1% | 5.6% | 45.2% | 2.8% | -23.7% | -8.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 41.5% | 41.5% | 41.8% | -6.0% | 32.9% | 82.8% | 30.4% | 1917.1% | 64.5% | -65.9% | -15.1% |
| ROA | 3.3% | 3.3% | 4.5% | -0.7% | 4.7% | 11.5% | 3.7% | 38.3% | 1.6% | -8.0% | -2.4% |
| ROIC | 10.6% | 10.6% | 14.1% | 2.3% | 13.0% | 27.2% | 11.4% | 15.5% | 9.6% | -3.6% | 0.1% |
| ROCE | 10.2% | 10.2% | 15.3% | 2.3% | 12.8% | 23.6% | 9.5% | 14.0% | 7.0% | -3.2% | 0.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 9.97 | 9.97 | 4.44 | 3.78 | 2.17 | 2.30 | 5.38 | 3.84 | — | 4.59 | 3.67 |
| Debt / EBITDA | 4.41 | 4.41 | 2.87 | 6.53 | 3.03 | 1.98 | 5.43 | 3.61 | 4.28 | — | 17.87 |
| Net Debt / Equity | — | 7.16 | 4.05 | 3.59 | 2.06 | 2.23 | 3.06 | 3.64 | — | 7.53 | 3.84 |
| Net Debt / EBITDA | 3.16 | 3.16 | 2.62 | 6.21 | 2.88 | 1.92 | 3.09 | 3.41 | 3.91 | — | 18.71 |
| Debt / FCF | — | 15.70 | 5.47 | — | — | — | 3.82 | 3.10 | 6.02 | 15.87 | 15.52 |
| Interest Coverage | 2.40 | 2.40 | 3.22 | 0.68 | 4.99 | 6.89 | 2.90 | 2.90 | 1.97 | -1.49 | -0.60 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.64 | 1.64 | 1.02 | 1.02 | 1.25 | 1.37 | 3.15 | 1.31 | 1.50 | 1.34 | 1.54 |
| Quick Ratio | 1.58 | 1.58 | 0.96 | 0.96 | 1.19 | 1.31 | 2.98 | 1.15 | 1.33 | 1.20 | 1.37 |
| Cash Ratio | 0.86 | 0.86 | 0.11 | 0.06 | 0.03 | 0.03 | 2.04 | 0.15 | 0.23 | 0.23 | 0.21 |
| Asset Turnover | — | 1.05 | 1.17 | 1.11 | 1.08 | 1.16 | 0.61 | 0.78 | 0.89 | 0.39 | 0.29 |
| Inventory Turnover | 52.06 | 52.06 | 46.23 | 43.70 | 36.54 | 41.13 | 20.00 | 19.07 | 17.25 | 15.20 | 9.26 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.1% | 1.3% | 2.1% | 3.2% | 4.4% | 3.0% | 3.2% | 0.3% | 0.3% | 0.4% | 2.0% |
| Payout Ratio | 47.6% | 47.6% | 36.0% | — | 27.2% | 14.6% | 57.8% | 0.7% | 13.8% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 2.5% | 5.5% | — | 16.2% | 20.7% | 5.5% | 42.3% | 2.2% | — | — |
| FCF Yield | 3.7% | 2.4% | 9.6% | — | — | — | 14.5% | 18.8% | 8.1% | 10.8% | 28.7% |
| Buyback Yield | 6.8% | 4.4% | 4.9% | 9.9% | 8.1% | 0.5% | 2.5% | 13.7% | 10.2% | 0.0% | 5.8% |
| Total Shareholder Yield | 8.9% | 5.7% | 7.0% | 13.2% | 12.5% | 3.5% | 5.7% | 14.0% | 10.6% | 0.4% | 7.8% |
| Shares Outstanding | — | $199M | $212M | $228M | $236M | $245M | $246M | $264M | $308M | $317M | $316M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying NRG stock.
NRG Energy, Inc.'s current P/E ratio is 24.4x. The historical average is 24.2x. This places it at the 78th percentile of its historical range.
NRG Energy, Inc.'s current EV/EBITDA is 8.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.4x.
NRG Energy, Inc.'s return on equity (ROE) is 41.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 5.2%.
Based on historical data, NRG Energy, Inc. is trading at a P/E of 24.4x. This is at the 78th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
NRG Energy, Inc.'s current dividend yield is 2.11% with a payout ratio of 47.6%.
NRG Energy, Inc. has 21.8% gross margin and 6.0% operating margin.
NRG Energy, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
ERCOT weather and commodity volatility
Metrics are mathematically derived from official filings.
P/E Compression Signals Market Skepticism
NRG's trailing P/E of 29.86 versus forward P/E of 13.48, as per current valuation metrics, suggests the market expects a sharp earnings rebound, but the wide gap may indicate skepticism about sustainability.
The trailing P/E is inflated by depressed trailing earnings, while the forward P/E implies a return to normalized profitability. This divergence is typical for volatile IPPs, but the market's willingness to pay a premium for future earnings is questionable given the Q2 2026 EPS miss. The dividend yield of 1.7% is below the sector average, reflecting a growth-oriented capital allocation rather than income focus.
Earned ROE Volatility Masks Regulatory Gap
NRG's ROE swung from -25.0% in 2024Q3 to 28.5% in 2025Q1, as per quarterly data, highlighting extreme volatility that obscures any comparison to an authorized return.
As an IPP, NRG does not have a traditional authorized ROE, but the volatility in earned returns suggests that market conditions, not regulatory constructs, drive profitability. The Q2 2026 ROE of 10.4% is near the typical authorized range for regulated utilities, but this appears coincidental given the non-regulated nature of the business. Investors should focus on normalized economic returns rather than quarterly GAAP ROE.
Operating Margin Instability Reflects Commodity Exposure
Operating margin ranged from -11.2% in 2024Q3 to 21.2% in 2024Q2, as reported in financial statements, indicating that cost recovery is highly sensitive to spark spreads and weather.
The wide swings in operating margin underscore the pass-through nature of fuel costs but also the inability to fully hedge against extreme events. The Q2 2026 margin of 9.5% is above the 10-quarter average, but the negative interest coverage in Q1 2026 suggests that timing mismatches in cost recovery can strain liquidity. This volatility is a key differentiator from regulated utilities, where cost recovery mechanisms smooth margins.
Debt-to-Capital Nears Critical Threshold
NRG's debt-to-capital ratio rose to 0.83 in 2026Q2, per balance sheet data, up from 0.75 in 2024Q2, indicating increasing leverage that may limit financial flexibility.
The reported D/E of 9.97% appears understated given the debt-to-capital of 0.83, which is high for any utility. Interest coverage of 4.86 in Q2 2026 is adequate but was negative in Q1 2026, highlighting vulnerability to earnings volatility. The absolute debt load of $23.5B, as per balance sheet data, raises refinancing risk if interest rates remain elevated, especially given the capital-intensive data center expansion.
Dividend Coverage Thin Despite Low Payout
NRG's dividend payout ratio was 19.8% in 2026Q2, as per quarterly data, but the dividend yield of 1.7% is low, suggesting that capital is being retained for growth rather than returned.
The low payout ratio indicates that dividends are well-covered by earnings, but the absolute yield is unattractive for income-focused investors. The OCF-to-dividend coverage of 5.4x, as per cash flow analysis, provides a cushion, but the aggressive CAPEX program may require external funding, potentially competing with dividend growth. The dividend appears safe but not a primary return driver.
Misapplied P/E Obscures Earnings Quality
Comparing NRG's P/E to regulated utilities is misleading because mark-to-market accounting and commodity hedging create non-cash earnings swings, as evidenced by the -25.0% ROE in 2024Q3.
The most commonly misapplied ratio for NRG is the P/E, as it fails to capture the economic reality of the business. Analysts should use EV/EBITDA or adjusted earnings that exclude unrealized gains/losses to better reflect cash-generating ability. The current P/E of 29.86 is inflated by depressed earnings, while the forward P/E of 13.48 may overstate the recovery if commodity prices remain volatile. A more appropriate metric is the price-to-cash-flow ratio, which smooths out non-cash items.