CMS · Intrinsic value
Is CMS Energy Corporation (CMS) overvalued or undervalued?
CMS Energy Corporation (CMS) trades at the delayed market price of $67.23 a share. That price already implies revenue growth of 14.8% a year for 5 years. TickerWorth's fair value is $59.73 a share (priced within our range of $38.90 – $75.81). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is CMS fairly valued?
- Fair value
- $59.73
- Market price
- $67.23
- Downside to fair value
- 11.2%
- Verdict
- Priced within our range of $38.90 – $75.81
Reverse DCF: Today's price implies revenue growth of 14.8% a year for 5 years; our model assumes 2.8% a year on average over the same horizon.
What is CMS's TickerWorth Score?
Scores lower than almost every company we compare it with
Compared with Utilities companies in US
Its weakest point: profitability is weak.
- Value · 43 of 100
Cheaper than 43% of Utilities companies in US
- Price vs worth · 26 of 100
- Quality · 30 of 100
More profitable than 30% of Utilities companies in US
- Financial health · 42 of 100
Financially stronger than 42% of Utilities companies in US
- Growth · 32 of 100
Growing faster than 32% of Utilities companies in US
- Momentum · 41 of 100
Outperformed 41% of Utilities companies in US over the past year
Confidence: High confidence · Scored
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CMS DCF valuation, input by input
TickerWorth's fair value for CMS Energy Corporation (CMS) is $59.73 a share, against the delayed market price of $67.23 (priced within our range of $38.90 – $75.81). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values CMS at about $31.30 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts CMS Energy Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 6.4%, with a long-run terminal growth rate of 2.5%. About 82% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 14.8% annual revenue growth for CMS. Our base case instead compounds to about 2.8% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, CMS's modeled DCF value ranges from about $11.04 to $125.73 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what CMS Energy Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of CMS's intrinsic value. Figures update as new filings and prices come in.
Every input behind CMS's DCF
| Input | Value |
|---|---|
| Base-year revenueCMS ENERGY CORPORATION FY2025 10-K (accession 0000811156-26-000004): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $8,305,000,000 |
| Base EBIT marginCMS ENERGY CORPORATION FY2025 10-K (accession 0000811156-26-000004): us-gaap:OperatingIncomeLoss 1,727,000,000 / revenue 8,305,000,000 = 20.79%, FY2025. | 20.8% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 2% → 2% → 3% → 3% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.40 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesCMS ENERGY CORPORATION FY2025 10-K (accession 0000811156-26-000004): WeightedAverageNumberOfDilutedSharesOutstanding = 301,000,000 shares, FY2025. | 301M |
| Market priceDelayed quote · as of 2026-10-19 19:37 UTC | $67.23 |
Change CMS's assumptions
The discount-rate dial and the editable model
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What does CMS Energy Corporation do?
What does it do?
CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and NorthStar Clean Energy. It operates in the Utilities - Regulated Electric industry (Utilities sector), headquartered in United States. The company employs roughly 8,350 people.
How does it make money?
The business turns $8.3B in annual revenue into profit. Out of every $100 of sales, about $17 is left as operating profit (operating margin of 17.2%), after a 40% gross margin on the products/services it sells. After all costs, taxes and interest, 11.6% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries moderate debt (1.9× equity), may struggle to cover its short-term bills (0.9× current ratio), and is currently profitable.
Who at CMS filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| MADDIPATI SRIKANTH | EVP/CFO | Open-market buy | $14,491.00 | Form 4 for MADDIPATI SRIKANTH (opens sec.gov in a new tab) | |
| MADDIPATI SRIKANTH | EVP/CFO | Grant / award | — | Form 4 for MADDIPATI SRIKANTH (opens sec.gov in a new tab) | |
| Hofmeister Brandon J. | Senior Vice President | Open-market sale | $222,930.00 | Form 4 for Hofmeister Brandon J. (opens sec.gov in a new tab) | |
| Wright Laura | Director | Grant / award | — | Form 4 for Wright Laura (opens sec.gov in a new tab) | |
| TANSKI RONALD J | Director | Grant / award | — | Form 4 for TANSKI RONALD J (opens sec.gov in a new tab) | |
| RUSSELL JOHN G | Director | Grant / award | — | Form 4 for RUSSELL JOHN G (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is CMS's intrinsic value?
TickerWorth's blended fair value for CMS Energy Corporation (CMS) is $59.73 per share, versus a market price of $67.23 (priced within our range of $38.90 – $75.81).
Is CMS overvalued or undervalued?
Priced within our range of $38.90 – $75.81 at $67.23. We don't call CMS overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for CMS?
A WACC of 6.4% and a terminal growth rate of 2.5%.
Is CMS Energy stock undervalued?
TickerWorth's fair value for CMS Energy Corporation (CMS) is $59.73 against a market price of $67.23. Our read: Priced within our range of $38.90 – $75.81. This is a model estimate, not investment advice.
CMS Energy (CMS) DCF valuation and fair value
Our fair value for CMS Energy Corporation (CMS) is $59.73, built on a 6.4% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into CMS Energy stock?
Today's price implies revenue growth of 14.8% a year for 5 years; our model assumes 2.8% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $67.23. A model estimate, not investment advice.
CMS Energy (CMS) insider trading
The most recent insider filing (SEC Form 4) for CMS Energy Corporation (CMS): MADDIPATI SRIKANTH, EVP/CFO, open-market buy on 2026-07-31. The latest filings are listed on this page. A disclosure, not a signal to trade.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.