Weighing FirstEnergy (FE) After Regulatory Headlines And A Strong Five Year Share Price Run

Simply Wall St.02-01 17:26

If you are wondering whether FirstEnergy's current share price still offers value, you are not alone. This article is built to help you line the price up against what the company might reasonably be ...

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This article is built to help you line the price up against what the company might reasonably be ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-fe/firstenergy/news/weighing-firstenergy-fe-after-regulatory-headlines-and-a-str\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://simplywall.st/stocks/us/utilities/nyse-fe/firstenergy/news/weighing-firstenergy-fe-after-regulatory-headlines-and-a-str","article_id":"2608888820","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9521000-choice2-main-header/1585186610142"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/utilities/nyse-fe/firstenergy/news/weighing-firstenergy-fe-after-regulatory-headlines-and-a-str","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2608888820","pubTimestamp":1769938003,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether FirstEnergy's current share price still offers value, you are not alone. This article is built to help you line the price up against what the company might reasonably be worth.\nFirstEnergy's shares recently closed at US$47.34, with returns of 1.7% over 7 days, 4.6% over 30 days, 4.6% year to date, 23.9% over 1 year, 35.8% over 3 years, and 78.1% over 5 years. This naturally raises questions about how much of the story is already reflected in the price.\nRecent...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","FE":"第一能源公司","LU2346227817.USD":"BGF SUSTAINABLE GLOBAL INFRASTRUCTURE \"A2\" (USD) ACC","DDM":"2倍做多道指ETF-ProShares","BK4081":"电力公用事业","BK4606":"AI电力股","BK4588":"碎股"},"translate_title":"在监管头条新闻和五年股价强劲上涨之后权衡FirstEnergy(FE)","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DDM":1,"FE":1.5},"content_text":"If you are wondering whether FirstEnergy's current share price still offers value, you are not alone. This article is built to help you line the price up against what the company might reasonably be worth. FirstEnergy's shares recently closed at US$47.34, with returns of 1.7% over 7 days, 4.6% over 30 days, 4.6% year to date, 23.9% over 1 year, 35.8% over 3 years, and 78.1% over 5 years. This naturally raises questions about how much of the story is already reflected in the price. Recent headlines around FirstEnergy have focused on ongoing regulatory and legal matters, as well as its position in the US utilities sector. Together these factors shape how investors think about its risk profile and help frame why the share price sits where it does today and why opinions on its potential can differ. Our valuation checks currently give FirstEnergy a score of 2 out of 6, which suggests some valuation support but also areas that warrant closer inspection. Next we will look at different valuation approaches, then finish with a way to pull them together into a clearer picture.  FirstEnergy scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: FirstEnergy Dividend Discount Model (DDM) Analysis The Dividend Discount Model estimates what a stock could be worth by projecting future dividends and discounting them back to today. It is essentially asking what a fair price might be for the stream of dividends an investor expects to collect over time. For FirstEnergy, the model uses a recent annual dividend per share of about US$2.01, a return on equity of 9.15% and a very high payout ratio of 99.18%. That payout ratio leaves only a small portion of earnings to reinvest. This feeds into an implied dividend growth rate of roughly 0.07%. The growth input is calculated as the product of retained earnings and return on equity, using the formula: (1 minus payout ratio) multiplied by ROE. Using these inputs, the DDM arrives at an estimated intrinsic value of US$29.14 per share. Compared with the recent share price of US$47.34, this dividend-based model suggests that the stock is about 62.4% overvalued according to these assumptions. Result: OVERVALUED Our Dividend Discount Model (DDM) analysis suggests FirstEnergy may be overvalued by 62.4%. Discover 875 undervalued stocks or create your own screener to find better value opportunities. FE Discounted Cash Flow as at Feb 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for FirstEnergy. Approach 2: FirstEnergy Price vs Earnings For a profitable company like FirstEnergy, the P/E ratio is a useful shorthand for how much investors are paying for each dollar of earnings. It ties the share price directly to the bottom line, which is usually more stable for established utilities than revenue or book value alone. What counts as a normal or fair P/E often reflects how the market views a company’s growth outlook and risk. Higher expected growth or lower perceived risk can justify a higher multiple, while slower growth or higher risk can point to a lower one. FirstEnergy currently trades on a P/E of about 20.56x. That sits slightly below the Electric Utilities industry average of around 20.75x and above the peer group average of roughly 16.27x. Simply Wall St’s Fair Ratio for FirstEnergy is 22.86x, which is a proprietary estimate of what the P/E might be given its earnings profile, industry, profit margins, market cap and risk factors. This Fair Ratio can be more informative than a simple peer or industry comparison because it aims to adjust for company specific traits rather than assuming all utilities deserve the same multiple. Since 22.86x is higher than the current 20.56x, this framework points to FirstEnergy trading below that Fair Ratio. Result: UNDERVALUED NYSE:FE P/E Ratio as at Feb 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1426 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your FirstEnergy Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which let you attach a clear story about a company to the numbers you see on Simply Wall St. A Narrative is your view of FirstEnergy written into the assumptions behind a forecast, including what you think is a reasonable path for revenue, earnings and profit margins, and the fair value that falls out of those estimates. On Simply Wall St, Narratives live in the Community page, are easy to set up and compare, and help you decide what to do by lining up each Narrative fair value against today’s share price to see whether the stock looks expensive or cheap on your terms. Because Narratives update when fresh information arrives, such as company news or earnings releases, they can help you keep your view of FirstEnergy current, and you might see one investor using cautious assumptions that lead to a much lower fair value than another investor who expects stronger margins and therefore lands on a much higher fair value. Do you think there's more to the story for FirstEnergy? Head over to our Community to see what others are saying! NYSE:FE 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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