Consolidated Edison, Inc. (ED) — Fair Value Analysis

Base-case fair value (P50): $121.54 · Current price: $108.80 · Verdict: Fairly Valued

The Verdict on ED

Consolidated Edison (ED) is currently assessed as Fairly Valued based on our comprehensive Monte Carlo simulations. With the stock trading at $108.80, our median fair value (P50) estimate stands at $121.54, indicating a potential +11.7% upside to its current price. While offering a modest appreciation potential, the core finding suggests that ED's current market valuation largely aligns with its intrinsic value distribution derived from thousands of forward-looking scenarios. Investors seeking substantial undervaluation may need to look elsewhere, as ED's price already reflects much of its expected future performance.

How ED stacks up against Utilities

Within the Utilities sector, Consolidated Edison's operational and financial health is categorized as average. This quality tier, combined with its current price of $108.80 relative to the $121.54 fair value, paints a picture of a stable utility player priced in line with its sector standing. The +11.7% identified through simulations suggests that while ED is not dramatically mispriced, there is still a slight premium available should the stock converge to its median fair value. This performance context is crucial for understanding why ED is deemed Fairly Valued rather than undervalued or overvalued.

What this means for investors

For investors, ED's Fairly Valued verdict, paired with an average quality tier and an indicated +11.7% to its median fair value of $121.54, suggests a balanced risk-reward profile. The current price of $108.80 implies that the market has largely digested ED's known fundamentals and future prospects. While the Monte Carlo simulations do not point to significant undervaluation, they also don't flag ED as being overextended. To fully understand the broader range of outcomes, including specific bear-case and bull-case price targets and the probability distribution of these scenarios, sign up for a free FairCurve account to track ED's fair value as new fundamentals are released.