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NRG Energy Inc. – Other Electric Power Generation
a fortune 200 company, nrg is at the forefront of changing how people think about and use energy. whether as one of the largest solar power developer in the country, by building the nation’s first privately funded electric vehicle charging infrastructure or by giving customers the latest smart energy solutions to better manage their energy use, nrg is a pioneer in developing cleaner and smarter energy choices for our customers. our diverse power generating facilities have a capacity of more than 50,000 megawatts, capable of supporting nearly 1/3 of the u.s. population. our retail electricity providers serve nearly 3 million recurring retail customers. through our company and our subsidiaries, we serve customers in all 50 states and d.c.
Analysis Results
Intrinsic Value $273.85
Latest Price $38.63
Relative Value 86% 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 9.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.5%, 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)
2023 2.12 2.0
2024 2.32 2.06
2025 2.54 2.12
2026 2.78 2.19
2027 3.04 2.26
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 74.6 billion. This corresponds to a present value of 52.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.6 billion. Adding in the terminal value gives a total present value of 62.7 billion.

There are presently 229.0 million outstanding shares, so the intrinsic value per share is 273.85.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 16,231,000,000
Current Cash 430,000,000
Current Liabilities 12,982,000,000
Current Debt 63,000,000
Non-Cash Working Capital (NCWC) 2,882,000,000
Change in NCWC 202,000,000
EBIT 2,230,000,000
Tax Provision 442,000,000
Depreciation and Amortization 711,000,000
Capital Expenditure -367,000,000
Unlevered Free Cash Flow 2,183,300,060
Current Assets 10,841,000,000
Current Cash 250,000,000
Current Liabilities 7,915,000,000
Current Debt 4,000,000
Non-Cash Working Capital (NCWC) 2,680,000,000
Change in NCWC 2,471,000,000
EBIT 3,748,000,000
Tax Provision 672,000,000
Depreciation and Amortization 875,000,000
Capital Expenditure -269,000,000
Unlevered Free Cash Flow 5,944,043,022
Current Assets 6,028,000,000
Current Cash 3,905,000,000
Current Liabilities 1,915,000,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 209,000,000
Change in NCWC -263,000,000
EBIT 1,194,000,000
Tax Provision 251,000,000
Depreciation and Amortization 553,000,000
Capital Expenditure -230,000,000
Unlevered Free Cash Flow 860,183,968
Current Assets 3,088,000,000
Current Cash 345,000,000
Current Liabilities 2,359,000,000
Current Debt 88,000,000
Non-Cash Working Capital (NCWC) 472,000,000
Change in NCWC -239,000,000
EBIT 1,313,000,000
Tax Provision -3,334,000,000
Depreciation and Amortization 437,000,000
Capital Expenditure -228,000,000
Unlevered Free Cash Flow 1,283,000,000
Current Assets 3,600,000,000
Current Cash 563,000,000
Current Liabilities 2,398,000,000
Current Debt 72,000,000
Non-Cash Working Capital (NCWC) 711,000,000
Change in NCWC -84,000,000
EBIT 1,148,000,000
Tax Provision 7,000,000
Depreciation and Amortization 552,000,000
Capital Expenditure -388,000,000
Unlevered Free Cash Flow 1,210,792,291
Current Assets 4,415,000,000
Current Cash 991,000,000
Current Liabilities 3,317,000,000
Current Debt 688,000,000
Non-Cash Working Capital (NCWC) 795,000,000
Change in NCWC -465,000,000
EBIT 1,094,000,000
Tax Provision 8,000,000
Depreciation and Amortization 1,215,000,000
Capital Expenditure -1,111,000,000
Unlevered Free Cash Flow 733,000,000
Current Assets 6,395,000,000
Current Cash 1,973,000,000
Current Liabilities 4,382,000,000
Current Debt 1,220,000,000
Non-Cash Working Capital (NCWC) 1,260,000,000
Change in NCWC -719,000,000
EBIT 1,265,000,000
Tax Provision 16,000,000
Depreciation and Amortization 1,507,000,000
Capital Expenditure -1,244,000,000
Unlevered Free Cash Flow 809,000,000
Current Assets 7,391,000,000
Current Cash 1,518,000,000
Current Liabilities 4,375,000,000
Current Debt 481,000,000
Non-Cash Working Capital (NCWC) 1,979,000,000
Change in NCWC -102,000,000
EBIT 1,015,000,000
Tax Provision 1,342,000,000
Depreciation and Amortization 1,692,000,000
Capital Expenditure -1,283,000,000
Unlevered Free Cash Flow 1,322,000,000
Current Assets 8,582,000,000
Current Cash 2,116,000,000
Current Liabilities 4,859,000,000
Current Debt 474,000,000
Non-Cash Working Capital (NCWC) 2,081,000,000
Change in NCWC -107,000,000
EBIT 1,471,000,000
Tax Provision 3,000,000
Depreciation and Amortization 1,633,000,000
Capital Expenditure -909,000,000
Unlevered Free Cash Flow 2,055,311,111
Current Assets 7,596,000,000
Current Cash 2,254,000,000
Current Liabilities 4,204,000,000
Current Debt 1,050,000,000
Non-Cash Working Capital (NCWC) 2,188,000,000
Change in NCWC 849,000,000
EBIT 937,000,000
Tax Provision -282,000,000
Depreciation and Amortization 1,341,000,000
Capital Expenditure -1,987,000,000
Unlevered Free Cash Flow 1,140,000,000
Current Assets 7,956,000,000
Current Cash 2,087,000,000
Current Liabilities 4,677,000,000
Current Debt 147,000,000
Non-Cash Working Capital (NCWC) 1,339,000,000
Change in NCWC 431,000,000
EBIT 494,000,000
Tax Provision -327,000,000
Depreciation and Amortization 1,135,000,000
Capital Expenditure -3,396,000,000
Unlevered Free Cash Flow -1,336,000,000

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