Constellation Energy Corporation (CEG)
Valuation Overview•Is Constellation Energy Corporation Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 63/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
CEG demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 16.6% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $11.1B | +8.3% | +1.5% | +7.7% | +2.9% | |
| EBITDA | $2.3B | — | +11.7% | — | — | |
| Net Income | $1.6B | -38.1% | — | — | +5.4% | |
| EPS (Diluted) | $4.49 | -37.8% | — | +32.6% | +5.8% | |
| Free Cash Flow | -$3.3B | -74.1% | +19.7% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 77.9% | 38.2% | 27.4% | 22.5% |
| Operating Margin | 16.6% | 12.3% | 7.5% | 6.0% |
| Net Margin | 12.7% | 10.5% | 6.0% | 5.8% |
| FCF Margin | -4.4% | -1.6% | 1.6% | 2.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.54 | $2.74 | +7.9% | ||
| Q1'26 | $2.28 | $2.30 | +0.9% | ||
| Q4'25 | $3.11 | $3.04 | -2.3% | ||
| Q3'25 | $1.84 | $1.91 | +3.8% | ||
| Q2'25 | $2.18 | $2.14 | -1.8% | ||
| Q1'25 | $2.16 | $2.44 | +13.0% | ||
| Q4'24 | $2.66 | $2.74 | +3.0% | ||
| Q3'24 | $1.71 | $1.68 | -1.8% |
Total return is -10.0% (1Y), lagging the benchmark by -35.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -24.9% | -34.2% | — |
| 1Y | -10.0% | -35.0% | +0.5% |
| 3YCAGR | +44.7% | +23.9% | +4.8% |
| 5YCAGR | +46.1% | +32.9% | +13.1% |
| 10YCAGR | +20.9% | +6.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Constellation Energy Corporation (CEG) valuation, health, and returns.
Constellation Energy Corporation is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. trading near fair value (DCF: $267.84)
Constellation Energy Corporation has multiple valuation anchors: DCF Intrinsic Value: $267.84 | Peer Relative Fair Value: $218.12 | Wall Street Analyst Target: $365.13 (implying +33.2% upside). A convergence of these signals offers higher conviction.
Constellation Energy Corporation displays good financial health with a composite quality score of 63/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 11.9%.
Constellation Energy Corporation pays a 0.6% dividend yield, covered by a 21% payout ratio with 4 years of growth, supplemented by a 0.4% buyback yield.
Constellation Energy Corporation's current growth trajectory is Accelerating. The company achieved +8.3% 1Y revenue growth and -37.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +1.5%.
Wall Street consensus is Buy based on 20 analysts, beating EPS expectations in 67% of recent quarters with a 2-quarter streak. The consensus price target represents a +33.2% change from current levels.
Investment risks for Constellation Energy Corporation include: -40.0% 1-year max drawdown, high beta (1.49x market volatility). Volatility risk is characterized by a beta of 1.49x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.