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Consolidated Edison, Inc. – Other Electric Power Generation
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy-delivery companies, with approximately $12 billion in annual revenues and $63 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric service in New York City and New York's Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam service in Manhattan; Orange and Rockland Utilities, Inc. (O&R), a regulated utility serving customers in a 1,300-square-mile-area in southeastern New York State and northern New Jersey; Con Edison Clean Energy Businesses, Inc., the second-largest solar developer in the United States and the seventh-largest worldwide, which, through its subsidiaries develops, owns and operates renewable and sustainable energy infrastructure projects and provides energy-related products and services to wholesale and retail customers; and Con Edison Transmission, Inc., which falls primarily under the oversight of the Federal Energy Regulatory Commission and through its subsidiaries invests in electric transmission projects supporting its parent company's effort to transition to clean, renewable energy. Con Edison Transmission manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that will bring clean, renewable electricity to customers, focusing on New York, New England, the Mid-Atlantic states and the Midwest.
Analysis Results
Intrinsic Value $538.58
Latest Price $95.05
Relative Value 82% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 48.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 48.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.58 1.51
2023 2.35 2.14
2024 3.48 3.03
2025 5.17 4.29
2026 7.66 6.08
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 230 billion. This corresponds to a present value of 174 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.0 billion. Adding in the terminal value gives a total present value of 191 billion.

There are presently 355.0 million outstanding shares, so the intrinsic value per share is 538.58.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,551,000,000
Current Cash 992,000,000
Current Liabilities 5,427,000,000
Current Debt 1,928,000,000
Non-Cash Working Capital (NCWC) 1,060,000,000
Change in NCWC 548,000,000
EBIT 2,826,000,000
Tax Provision 190,000,000
Depreciation and Amortization 2,032,000,000
Capital Expenditure -3,983,000,000
Unlevered Free Cash Flow 1,034,757,049
Current Assets 5,301,000,000
Current Cash 1,272,000,000
Current Liabilities 7,354,000,000
Current Debt 3,837,000,000
Non-Cash Working Capital (NCWC) 512,000,000
Change in NCWC 370,000,000
EBIT 2,654,000,000
Tax Provision 90,000,000
Depreciation and Amortization 1,920,000,000
Capital Expenditure -3,912,000,000
Unlevered Free Cash Flow 838,434,359
Current Assets 4,272,000,000
Current Cash 981,000,000
Current Liabilities 6,287,000,000
Current Debt 3,138,000,000
Non-Cash Working Capital (NCWC) 142,000,000
Change in NCWC 164,000,000
EBIT 2,676,000,000
Tax Provision 296,000,000
Depreciation and Amortization 1,684,000,000
Capital Expenditure -3,691,000,000
Unlevered Free Cash Flow 376,723,502
Current Assets 3,864,000,000
Current Cash 895,000,000
Current Liabilities 6,207,000,000
Current Debt 3,216,000,000
Non-Cash Working Capital (NCWC) -22,000,000
Change in NCWC 265,000,000
EBIT 2,533,000,000
Tax Provision 401,000,000
Depreciation and Amortization 1,438,000,000
Capital Expenditure -3,745,000,000
Unlevered Free Cash Flow -78,676,388
Current Assets 3,537,000,000
Current Cash 797,000,000
Current Liabilities 4,902,000,000
Current Debt 1,875,000,000
Non-Cash Working Capital (NCWC) -287,000,000
Change in NCWC -167,000,000
EBIT 2,609,000,000
Tax Provision 472,000,000
Depreciation and Amortization 1,341,000,000
Capital Expenditure -3,488,000,000
Unlevered Free Cash Flow -321,648,973
Current Assets 3,406,000,000
Current Cash 776,000,000
Current Liabilities 3,843,000,000
Current Debt 1,093,000,000
Non-Cash Working Capital (NCWC) -120,000,000
Change in NCWC -560,000,000
EBIT 2,471,000,000
Tax Provision 698,000,000
Depreciation and Amortization 1,216,000,000
Capital Expenditure -5,158,000,000
Unlevered Free Cash Flow -2,918,677,817
Current Assets 3,836,000,000
Current Cash 944,000,000
Current Liabilities 4,720,000,000
Current Debt 2,268,000,000
Non-Cash Working Capital (NCWC) 440,000,000
Change in NCWC -294,000,000
EBIT 2,427,000,000
Tax Provision 605,000,000
Depreciation and Amortization 1,130,000,000
Capital Expenditure -3,353,000,000
Unlevered Free Cash Flow -906,649,054
Current Assets 3,854,000,000
Current Cash 699,000,000
Current Liabilities 3,781,000,000
Current Debt 1,360,000,000
Non-Cash Working Capital (NCWC) 734,000,000
Change in NCWC 311,000,000
EBIT 2,164,000,000
Tax Provision 568,000,000
Depreciation and Amortization 1,071,000,000
Capital Expenditure -2,702,000,000
Unlevered Free Cash Flow 103,546,987
Current Assets 3,891,000,000
Current Cash 674,000,000
Current Liabilities 4,730,000,000
Current Debt 1,936,000,000
Non-Cash Working Capital (NCWC) 423,000,000
Change in NCWC 66,000,000
EBIT 2,244,000,000
Tax Provision 476,000,000
Depreciation and Amortization 1,024,000,000
Capital Expenditure -2,713,000,000
Unlevered Free Cash Flow -73,501,950
Current Assets 3,451,000,000
Current Cash 394,000,000
Current Liabilities 3,945,000,000
Current Debt 1,245,000,000
Non-Cash Working Capital (NCWC) 357,000,000
Change in NCWC -176,000,000
EBIT 2,339,000,000
Tax Provision 600,000,000
Depreciation and Amortization 955,000,000
Capital Expenditure -2,406,000,000
Unlevered Free Cash Flow -94,088,454

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