Consolidated Edison (ED) is back in focus after its second quarter 2026 earnings beat expectations, with higher regulated electric and gas rate bases, reaffirmed full year guidance, and continued capital investment plans drawing investor attention.
See our latest analysis for Consolidated Edison.
While the earnings beat has put Consolidated Edison back in the spotlight, the share price tells a steadier story, with a year to date share price return of 7.99% and a 5 year total shareholder return of 65.40% pointing to gradually building momentum rather than a sharp re rating.
If you are thinking about how this kind of steady utility exposure fits into a broader portfolio, it can be useful to look at other power grid and infrastructure opportunities through the 37 power grid technology and infrastructure stocks
After a solid run on the back of these results, the question for Consolidated Edison now is simple: Is most of the return already reflected in the US$107.98 share price, or is there still clear upside on valuation?
Price-to-Earnings of 18x: Is It Justified for Consolidated Edison?
On the latest close at $107.98, Consolidated Edison trades on a P/E of 18x, which screens as good value compared with its peers and the wider market.
The P/E multiple compares the current share price with the company’s earnings per share. For a regulated utility like Consolidated Edison, investors often watch P/E closely because earnings tend to be steadier and valuations cluster in a tighter range than high growth sectors.
Here, the picture is relatively supportive for current pricing. The stock trades on 18x earnings, which is below the US market at 19.4x, below the global Integrated Utilities industry average at 18.7x, and below the peer average at 20.2x. An estimated “fair” P/E of 22.8x also sits higher than the current level. This suggests the market is applying a more cautious multiple than that fair ratio implies it could move toward over time.
Explore the SWS fair ratio for Consolidated Edison
Result: Price-to-Earnings of 18x (ABOUT RIGHT)
However, investors still need to watch for tighter regulatory outcomes in New York and any shift in power demand that could affect Consolidated Edison’s steady earnings profile.
Find out about the key risks to this Consolidated Edison narrative.
Another View on Consolidated Edison Using Cash Flows
The P/E comparison suggests Consolidated Edison is on reasonable terms at $107.98. Our DCF model is more cautious. It places the future cash flow value at $107.82, which is slightly below the current share price and points to a stock that looks close to fully valued. Which signal do you give more weight to in your own process?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Consolidated Edison 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 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Given the mixed signals on valuation and sentiment around Consolidated Edison, it helps to look beyond the headline numbers and assess the balance of risks and rewards for yourself. To see both sides of that picture in one place, start with the 4 key rewards and 2 important warning signs.
Looking for more investment ideas beyond Consolidated Edison?
If Consolidated Edison looks like just one piece of your plan, now is the time to widen your watchlist and line up other potential opportunities using targeted screeners.
- Target resilient income by checking out companies with robust payouts through the 8 dividend fortresses.
- Zero in on quality at a reasonable price by reviewing the 52 high quality undervalued stocks.
- Strengthen your downside protection by scanning the 83 resilient stocks with low risk scores.
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.
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