Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 5.06%, higher than industry average of 4.31%.

Growth Trajectory

Profitability

In the growth phase company makes 21.92% profit on every dollar of sales, higher than industry average of 14.97%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.33% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
39.09B USD
Equity Value
7.22B USD
FCF Yield
54.49%
Average ROIC
5.60%
Cost of Capital
6.60%
P/E Ratio
17.79x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues13.96B USD13.44B USD
Operating Income or EBIT3.11B USD2.88B USD
Interest Expense1.23B USD1.18B USD
Book Value Of Equity20.96B USD19.52B USD
Book Value Of Debt33.33B USD30.21B USD
Cash and Marketable Securities1.45B USD179M USD
Number of Shares Outstanding576.76M--
Minority interests0 USD0 USD
Current Stock Price71.92 USD--
Effective Tax Rate25.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-0.47%
3.83%Company
vs
4.31%Industry
Below Industry
Operating Margin
+7.30%
22.26%Company
vs
14.97%Industry
Above Industry
Xcel Energy Inc. demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 61% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 23.66B USD Add
Present Value (Cash Flow Over Next 10 Years) 15.43B USD Add
Value of Operating Assets 39.09B USD Sub-total
Debt 33.32B USD Subtract
Minority Interests — Subtract
Cash 1.45B USD Add
Value of Equity 7.22B USD Sub-total
Number of Shares 576.76M shares Divisor
Estimated Value per Share (Fair Value) 12.53 USD Total
Current Market Price 71.92 USD Reference

Financial Projections

Total FCF Present Value
15.43B USD
Avg Revenue Growth
4.57%
Avg Operating Margin
21.83%
Avg ROIC
5.60%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue14.80B USD15.55B USD16.34B USD17.17B USD18.04B USD18.93B USD19.86B USD20.81B USD21.78B USD22.79B USD23.83B USD
Growth Rate 6.10% 5.06% 5.06% 5.06% 5.06% 4.96% 4.87% 4.78% 4.69% 4.59% 4.59%
PROFITABILITY
Operating Income3.29B USD3.42B USD3.58B USD3.74B USD3.91B USD4.10B USD4.30B USD4.51B USD4.72B USD4.94B USD5.16B USD
Operating Margin 22.26% 22.03% 21.91% 21.79% 21.68% 21.68% 21.68% 21.68% 21.68% 21.68% 21.68%
EBIT (1-tax)2.47B USD2.57B USD2.68B USD2.80B USD2.93B USD3.07B USD3.22B USD3.38B USD3.54B USD3.70B USD3.87B USD
CASH FLOW
Reinvestment520.24M USD546.58M USD574.24M USD603.31M USD622.28M USD1.28B USD1.31B USD1.35B USD1.39B USD1.45B USD2.01B USD
Free Cash Flow1.95B USD2.02B USD2.11B USD2.20B USD2.31B USD1.79B USD1.91B USD2.02B USD2.15B USD2.25B USD1.85B USD
Terminal Value--------------------43.90B USD
Present Value1.85B USD1.82B USD1.80B USD1.79B USD1.78B USD1.30B USD1.30B USD1.28B USD1.26B USD1.21B USD—
EFFICIENCY
ROIC 4.68% 4.81% 4.98% 5.15% 5.32% 5.52% 5.66% 5.80% 5.93% 6.07% 8.83%
Cost of Capital 5.33% 5.33% 5.33% 5.33% 5.33% 6.03% 6.73% 7.43% 8.13% 8.83% 8.83%
Sales/Capital 1.44x 1.44x 1.44x 1.44x 1.44x 0.72x 0.72x 0.72x 0.72x 0.72x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)