COMPILED BY GEMINI 3.1

NextEra Energy (NEE) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$27.40 per share
Current Price $91.04
Margin of Safety -69.9%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
25.0%

" data-astro-cid-o7c3nvrh> A very high phase 1 growth rate is used because FY2025 FCF ($3.76B) is artificially low relative to the company's earning power, as capital expenditures remain elevated. As CapEx moderates and recent investments in wind, solar, and storage come online and generate operating cash flow, FCF will expand rapidly on a percentage basis.

Discount Rate (WACC)
4.2%

" data-astro-cid-o7c3nvrh> A very high phase 1 growth rate is used because FY2025 FCF ($3.76B) is artificially low relative to the company's earning power, as capital expenditures remain elevated. As CapEx moderates and recent investments in wind, solar, and storage come online and generate operating cash flow, FCF will expand rapidly on a percentage basis.

Terminal Growth Rate
2.5%

" data-astro-cid-o7c3nvrh> Utilities generally track population growth, electricity demand growth, and inflation. 2.5% is a standard, conservative long-term growth estimate for a premier utility operating in structurally growing markets like Florida.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 1.5%2.0%2.5%3.0%3.5%
1.5% $67.69 $27.40 $17.18 $12.51 $9.84
2.0% $255.73 $39.01 $21.12 $14.48 $11.01
2.5% $27.40 $67.69 $27.40 $17.18 $12.51
3.0% $27.40 $255.73 $39.01 $21.12 $14.48
3.5% $27.40 $27.40 $67.69 $27.40 $17.18

Undervalued vs current price Overvalued vs current price

Frequently Asked Questions

Why use a 6% discount rate? Isn't that too low?

Westmount Research. "NextEra Energy (NEE) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.