Entergy (ETR) has seen its stock fluctuate in recent weeks, prompting investors to take a closer look at how the company’s performance lines up with industry trends and long-term value assumptions.

See our latest analysis for Entergy.

Looking over the past year, Entergy’s share price has steadily climbed, finishing with a year-to-date gain of 24.27%. With a recent total shareholder return of 27.55% over the last 12 months and more than doubling shareholders’ money in five years, there is clear underlying momentum, even as short-term moves have been a bit choppy.

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With shares hovering near their analyst price targets and fundamentals showing consistent growth, the real question is whether Entergy is trading at a discount or if the market has already accounted for its future gains.

Entergy’s most popular narrative suggests its fair value sits meaningfully higher than the recent close. The narrative sees room for appreciation beyond the current market consensus, even as the price flirts with analyst targets.

Capital investment of $40 billion over four years (with an expanded pipeline for renewables, grid modernization, and resilience upgrades) is expected to grow the company’s rate base and support above-average EPS and earnings growth for several years.

Read the complete narrative.

Want to know the quantitative targets behind this optimistic view? The narrative models ambitious revenue gains and margin improvement, anchored by multibillion expansion plans and future profits. What bold forecast drives their calculation? Dive in to uncover how future financials unlock this valuation.

Result: Fair Value of $102.46 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, rising financing needs or unexpected regulatory outcomes could quickly limit Entergy’s upside. These factors could act as catalysts that challenge this optimistic outlook.

Find out about the key risks to this Entergy narrative.

While the bullish narrative sees Entergy as meaningfully undervalued, a look at the company’s price-to-earnings ratio tells a more cautious story. Entergy’s current ratio is 23.4x, which is above both the industry average of 20.6x and the peer average of 19.1x. The fair ratio, based on regression analysis, is estimated at 23.8x, which is very close to where Entergy currently trades. This suggests the market may already be pricing in much of the company’s future potential. This raises the question: is there still enough upside to outweigh the risks?