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

Base-case fair value (P50): $127.07 · Current price: $113.99 · Verdict: Fairly Valued

The Verdict on ED

Consolidated Edison (ED) is currently assessed as Fairly Valued based on our latest Monte Carlo simulations. These simulations indicate a median fair value (P50) of $127.07 for ED. At its current price of $113.99, this suggests a potential +11.5% upside towards its intrinsic value. While this upside exists, it positions ED within a balanced valuation range, aligning with our Fairly Valued verdict rather than suggesting significant undervaluation. Investors should view the current price point as generally reflective of the company's underlying value, with a moderate potential for appreciation towards the P50.

How ED stacks up against Utilities

Within the Utilities sector, Consolidated Edison (ED) maintains an average quality tier, reflecting its operational and financial health relative to peers. This average standing reinforces the Monte Carlo simulations' finding that ED is Fairly Valued. The analysis considers the inherent stability of the Utilities sector alongside ED's specific fundamentals. The comparison of its $113.99 against the median fair value of $127.07, which implies a +11.5% gap, suggests ED is neither an extreme bargain nor significantly overpriced relative to its industry context and quality profile.

What this means for investors

For investors considering ED, the Fairly Valued verdict, with a median fair value of $127.07 compared to a $113.99 and a +11.5% upside, suggests a balanced risk-reward profile. While there is potential for price appreciation towards the P50, the current valuation does not imply an overwhelmingly strong bull case without new catalysts. The full FairCurve analysis, which includes the probability distribution across various downside and upside scenarios, provides deeper insights beyond this median fair value. Sign up for a free FairCurve account to see ED's complete bear-case and bull-case distribution and track its fair value as new fundamentals are released.