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    Entergy Corporation

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD -4.78

    Market price

    USD 109.87

    Implied upside

    -104.3%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31

    AdjustedConsensus rests on as few as 1 analyst estimate(s).
    AdjustedFree cashflow is negative in at least one forecast year, so terminal value carries most of the valuation.
    AdjustedCapital expenditure runs at 47.5% of revenue against depreciation of 18.6%. A perpetuity has to be a steady state, so the forecast tapers capex to maintenance at depreciation plus the reinvestment terminal growth requires (g/ROIC of NOPAT), and the terminal year carries on from there. The bridge is shown under Terminal Value.

    Value Per Share

    Perpetuity growth
    USD -4.78-104.3%
    Exit multiple
    USD 70.69-35.7%
    Market price
    USD 109.87

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    -2bn0bn2bnFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Nominal FCFFDiscounted to todayUSD
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35CAGR
    RevenueUSD 14.5bnUSD 15.3bnUSD 16.1bnUSD 16.8bnUSD 17.5bnUSD 18.2bnUSD 18.9bnUSD 19.5bnUSD 20.1bnUSD 20.6bn+3.9%
    EBITUSD 3.0bnUSD 3.2bnUSD 3.4bnUSD 3.5bnUSD 3.7bnUSD 3.8bnUSD 4.0bnUSD 4.1bnUSD 4.2bnUSD 4.3bn+3.9%
    NOPATUSD 2.4bnUSD 2.5bnUSD 2.7bnUSD 2.8bnUSD 2.9bnUSD 3.0bnUSD 3.1bnUSD 3.2bnUSD 3.3bnUSD 3.4bn+3.9%
    Add depreciation & amortisationUSD 2.7bnUSD 2.9bnUSD 3.0bnUSD 3.1bnUSD 3.3bnUSD 3.4bnUSD 3.5bnUSD 3.6bnUSD 3.7bnUSD 3.8bn+3.9%
    Less capital expenditureUSD -6.9bnUSD -6.9bnUSD -6.8bnUSD -6.7bnUSD -6.6bnUSD -6.4bnUSD -6.1bnUSD -5.8bnUSD -5.5bnUSD -5.1bn-3.2%
    Capex, % of revenue47.5%45.0%42.5%40.0%37.5%35.0%32.4%29.9%27.4%24.9%-
    Less increase in working capitalUSD -53.2mUSD -26.3mUSD -25.9mUSD -25.2mUSD -24.4mUSD -23.3mUSD -22.0mUSD -20.5mUSD -18.8mUSD -16.9m-12.0%
    Free cashflow to firmUSD -1.8bnUSD -1.5bnUSD -1.2bnUSD -831.7mUSD -426.3mUSD 15.4mUSD 490.9mUSD 997.0mUSD 1.5bnUSD 2.1bn-
    Discount factor0.96870.90910.85320.80070.75140.70520.66180.62110.58280.5470-
    Present valueUSD -1.8bnUSD -1.4bnUSD -1.0bnUSD -665.9mUSD -320.3mUSD 10.9mUSD 324.9mUSD 619.2mUSD 891.6mUSD 1.1bn-
    Present Value Of The ForecastUSD -2.2bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.616Reported 0.427, pulled toward 1.0 (Blume)
    Cost of equity7.50%Risk-free + beta x equity risk premium
    Cost of debt6.27%Risk-free + 138bp, the spread for a BB+ rating at 2.4x interest cover. Book interest / average debt was lower, at 4.5%.
    Market capitalisationUSD 52.5bn62.9% of capital
    Total debtUSD 30.9bn37.1% of capital, book value as a proxy
    Tax rate21.0%Effective, capped at statutory
    WACC6.56%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD -4.78

    108% of EV

    Forecast FCFF, final year
    USD 2.1bn
    Capex at depreciation, working capital in reinvestment
    USD 3.4bn
    Less reinvestment at g/ROIC (38.1% of NOPAT)
    USD -1.3bn
    Capitalised
    USD 2.1bn
    ROIC (WACC floor)
    6.6%
    Terminal value, undiscounted
    USD 53.1bn
    Terminal value, discounted
    USD 29.0bn
    Enterprise value
    USD 26.9bn
    Less net debt
    USD 29.0bn
    Equity value
    USD -2.2bn

    Exit at 14.2x EBITDA

    Value per shareUSD 70.69

    104% of EV

    Terminal value, undiscounted
    USD 115.2bn
    Terminal value, discounted
    USD 63.0bn
    Enterprise value
    USD 60.8bn
    Less net debt
    USD 29.0bn
    Equity value
    USD 31.8bn

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    4.56%48.9350.0952.8158.6171.82
    5.56%16.1914.4312.6710.919.16
    6.56%-1.97-3.37-4.78-6.18-7.59
    7.56%-15.01-16.16-17.31-18.47-19.62
    8.56%-24.75-25.71-26.68-27.64-28.60

    Outlined: this model. Green text: above today's price of 109.87. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year-2.0%4.7%15.8%
    EBIT margin24.8%20.9%44.2%
    Discount rate-6.6%4.0%
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    Yahoo Finance and RBA data. General information, not advice. Methodology.