CNP · Intrinsic value
Is CenterPoint Energy, Inc. (CNP) overvalued or undervalued?
CenterPoint Energy, Inc. (CNP) trades at the delayed market price of $39.56 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is $29.28 a share (priced within our range of $20.92 – $43.21). 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 CNP fairly valued?
- Fair value
- $29.28
- Market price
- $39.56
- Downside to fair value
- 26.0%
- Verdict
- Priced within our range of $20.92 – $43.21
Reverse DCF: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is CNP's TickerWorth Score?
Expensive vs our estimate — the business scores well
Compared with Utilities companies in US
Its strongest point: growing quickly. Its weakest: trades above our estimate of what it's worth.
- Value · 34 of 100
Cheaper than 34% of Utilities companies in US
- Price vs worth · 20 of 100
- Quality · 53 of 100
More profitable than 53% of Utilities companies in US
- Financial health · 46 of 100
Financially stronger than 46% of Utilities companies in US
- Growth · 68 of 100
Growing faster than 68% of Utilities companies in US
- Momentum · 58 of 100
Outperformed 58% of Utilities companies in US over the past year
Confidence: Medium confidence · Scored
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CNP DCF valuation, input by input
TickerWorth's fair value for CenterPoint Energy, Inc. (CNP) is $29.28 a share, against the delayed market price of $39.56 (priced within our range of $20.92 – $43.21). 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 CNP at about $1.05 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 CenterPoint Energy, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 6.5%, with a long-run terminal growth rate of 2.5%. About 81% 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 — CNP would need sustained revenue growth of more than 25%/yr to justify today's price, against about 6.1% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, CNP's modeled DCF value ranges from about $-10.53 to $51.14 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 CenterPoint Energy, Inc. 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 CNP's intrinsic value. Figures update as new filings and prices come in.
Every input behind CNP's DCF
| Input | Value |
|---|---|
| Base-year revenueCENTERPOINT ENERGY INC FY2025 10-K (accession 0001130310-26-000008): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $9,337,000,000 |
| Base EBIT marginCENTERPOINT ENERGY INC FY2025 10-K (accession 0001130310-26-000008): us-gaap:OperatingIncomeLoss 2,110,000,000 / revenue 9,337,000,000 = 22.60%, FY2025. | 22.6% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 8% → 7% → 6% → 5% → 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) | 0.46 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesCENTERPOINT ENERGY INC FY2025 10-K (accession 0001130310-26-000008): WeightedAverageNumberOfDilutedSharesOutstanding = 655,650,000 shares, FY2025. | 656M |
| Market priceDelayed quote · as of 2026-10-19 20:15 UTC | $39.56 |
Change CNP's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does CenterPoint Energy, Inc. do?
What does it do?
CenterPoint Energy, Inc. operates as a public utility holding company in the United States. It operates in the Utilities - Regulated Electric industry (Utilities sector), headquartered in United States. The company employs roughly 8,794 people.
How does it make money?
The business turns $9.3B in annual revenue into profit. Out of every $100 of sales, about $24 is left as operating profit (operating margin of 24.5%), after a 47% 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 heavy debt (2.1× equity), can just cover its short-term bills (1.1× current ratio), and is currently profitable.
Who at CNP filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Clark Lauren Chesley | EVP and CHRO | Grant / award | — | Form 4 for Clark Lauren Chesley (opens sec.gov in a new tab) | |
| Fitch Laurie Lee | Director | Open-market buy | $40,700.00 | Form 4 for Fitch Laurie Lee (opens sec.gov in a new tab) | |
| Wright Russell Keith | VP and CAO | Shares withheld (tax) | $8,477.98 | Form 4 for Wright Russell Keith (opens sec.gov in a new tab) | |
| Soto Jesus Jr. | EVP and COO | Shares withheld (tax) | $608,767.18 | Form 4 for Soto Jesus Jr. (opens sec.gov in a new tab) | |
| Soto Jesus Jr. | EVP and COO | Shares withheld (tax) | $77,306.32 | Form 4 for Soto Jesus Jr. (opens sec.gov in a new tab) | |
| Foster Christopher A | EVP and CFO | Shares withheld (tax) | $255,390.51 | Form 4 for Foster Christopher A (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 CNP's intrinsic value?
TickerWorth's blended fair value for CenterPoint Energy, Inc. (CNP) is $29.28 per share, versus a market price of $39.56 (priced within our range of $20.92 – $43.21).
Is CNP overvalued or undervalued?
Priced within our range of $20.92 – $43.21 at $39.56. We don't call CNP overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for CNP?
A WACC of 6.5% and a terminal growth rate of 2.5%.
Is CenterPoint Energy stock undervalued?
TickerWorth's fair value for CenterPoint Energy, Inc. (CNP) is $29.28 against a market price of $39.56. Our read: Priced within our range of $20.92 – $43.21. This is a model estimate, not investment advice.
CenterPoint Energy (CNP) DCF valuation and fair value
Our fair value for CenterPoint Energy, Inc. (CNP) is $29.28, built on a 6.5% 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 CenterPoint Energy stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. 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 $39.56. A model estimate, not investment advice.
CenterPoint Energy (CNP) insider trading
The most recent insider filing (SEC Form 4) for CenterPoint Energy, Inc. (CNP): Clark Lauren Chesley, EVP and CHRO, grant / award on 2026-10-01. 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.