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    Consolidated Edison (ED) Looks Fully Priced On Earnings Hopes And Its Affirmed Dividend

    Simply Wall St·07/23/2026 07:26:48
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    Consolidated Edison (ED) is back in focus after affirming a quarterly dividend of $0.8875 per share, payable on September 15, 2026, to shareholders of record as of August 19, 2026.

    See our latest analysis for Consolidated Edison.

    Consolidated Edison’s share price has gained 12.1% year to date, with a 4.84% 1 month share price return and a 12.93% 1 year total shareholder return. This suggests interest has picked up as investors focus on the upcoming earnings release and the affirmed dividend.

    If this steady utility story has your attention, it could be a good moment to scan the grid for other power and infrastructure opportunities via our 36 power grid technology and infrastructure stocks

    After a solid run and with Consolidated Edison trading close to analyst targets and an estimated fair value premium, the tension is clear: is the market getting ahead of itself, or is the caution still warranted?

    Price-to-Earnings of 19.2x: Is it justified?

    On earnings, Consolidated Edison trades on a P/E of 19.2x at a last close of $112.09, which sits slightly below the US Integrated Utilities industry average of 21x but above the global Integrated Utilities average of 18.8x.

    The P/E ratio compares the current share price with earnings per share, giving a quick sense of how much investors are paying for each dollar of profit. For a regulated utility like Consolidated Edison, where earnings and revenue are forecast to grow but not at especially fast rates, the market is effectively putting a moderate premium on current earnings without pricing in rapid expansion.

    That premium looks more measured when stacked against both peers and an estimated fair P/E of 22.1x. The current 19.2x is below that fair ratio level and below the 21.2x peer average cited, yet a touch above the wider global sector at 18.8x. This suggests the valuation sits in a middle ground that the market could shift away from if growth or risk expectations change.

    Explore the SWS fair ratio for Consolidated Edison

    Result: Preferred multiple of Price-to-Earnings of 19.2x (ABOUT RIGHT)

    However, Consolidated Edison still faces potential pressure if regulatory decisions reduce allowed returns or if higher interest rates weigh on its valuation and the economics of future projects.

    Find out about the key risks to this Consolidated Edison narrative.

    Another View: SWS DCF Model Puts Consolidated Edison In A Different Light

    While Consolidated Edison looks reasonably placed on a 19.2x P/E, the SWS DCF model points the other way, with an estimated value of $106.88 per share versus the current $112.09. That implies the stock is pricing in more future cash flow than this model supports. Which signal do you trust more, the earnings multiple or the discounted cash flow estimate?

    Look into how the SWS DCF model arrives at its fair value.

    ED Discounted Cash Flow as at Jul 2026
    ED Discounted Cash Flow as at Jul 2026

    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 47 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

    Seen enough to form a view on Consolidated Edison, or still weighing the balance of risks and rewards? Act quickly, review the underlying data, and use the 3 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Consolidated Edison?

    If Consolidated Edison has sharpened your focus, do not stop here. Broaden your watchlist now with a few targeted stock ideas that many investors overlook.

    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.