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NextEra Energy (NEE) is back in focus after the U.S. approved development of up to 10 gigawatts of natural gas generation in Texas and Pennsylvania under the new U.S. Japan trade agreement, with Japan committing US$550b.
See our latest analysis for NextEra Energy.
NextEra Energy’s share price has climbed 15.66% over the past 90 days and its 1 year total shareholder return of 35.66% indicates building momentum as investors weigh these new gas projects alongside its broader utility and clean energy portfolio.
If this kind of large scale infrastructure story interests you, it may be worth widening your search with our screener of 26 power grid technology and infrastructure stocks
With the stock up 35.66% over the past year and trading only about 2% below the average analyst price target, the key question is whether NextEra is still undervalued or if the market already reflects its future growth.
NextEra Energy’s latest fair value estimate of $93.65 sits slightly above the last close at $92.85, so the narrative frames the stock as almost fully priced with a small upside supported by long term power demand themes.
Accelerating and sustained demand growth for electricity, driven by AI, data center expansion, and electrification of sectors like transportation and heating, positions NextEra to grow volumes and capture higher average revenue per MWh as utilities compete to provide essential infrastructure for hyperscalers and traditional customers. This is expected to support robust revenue growth.
Read the complete narrative.
Curious what underpins that near premium price tag. The narrative leans on projected revenue expansion, firmer margins, and a future earnings multiple that assumes solid execution. The exact numbers driving that $93.65 fair value might surprise you.
Result: Fair Value of $93.65 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, higher financing costs and tighter permitting could delay projects or reduce returns, which would challenge the optimistic earnings and fair value narrative.
Find out about the key risks to this NextEra Energy narrative.
While the fair value narrative sits at $93.65 per share, our DCF model tells a different story, coming in at $76.53. On that basis, NextEra Energy at $92.85 screens as overvalued. The question is which set of assumptions you find more realistic.
Look into how the SWS DCF model arrives at its fair value.
NEE Discounted Cash Flow as at Apr 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out NextEra Energy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 63 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
The story so far presents mixed signals. If you want to move quickly and make up your own mind, start by weighing 1 key reward and 2 important warning signs
If you stop with just one stock, you could miss opportunities that fit your style better, so put the Simply Wall St Screener to work for you.
This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NEE.
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