SRE · Intrinsic value
Is Sempra (SRE) overvalued or undervalued?
Sempra (SRE) trades at the delayed market price of $82.81 a share. That price already implies revenue growth of 8.1% a year for 5 years. TickerWorth's fair value is $56.16 a share (47% above fair value), as of Oct 21, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from market data · Updated Oct 21, 2026 · How these pages are made
Is SRE overvalued?
- Fair value
- $56.16
- Market price
- $82.81
- Downside to fair value
- 32.2%
- Verdict
- 47% above fair value
Reverse DCF: Today's price implies revenue growth of 8.1% a year for 5 years; our model assumes 1.9% a year on average over the same horizon.
What is SRE's TickerWorth Score?
Expensive vs our estimate — the business scores well
Compared with Utilities companies in US
Its strongest point: growing quickly. Its weakest: looks expensive on the numbers.
- Value · 24 of 100
Cheaper than 24% of Utilities companies in US
- Price vs worth · 19 of 100
- Quality · 53 of 100
More profitable than 53% of Utilities companies in US
- Financial health · 56 of 100
Financially stronger than 56% of Utilities companies in US
- Growth · 69 of 100
Growing faster than 69% of Utilities companies in US
- Momentum · 36 of 100
Outperformed 36% of Utilities companies in US over the past year
Confidence: High confidence · Scored
Get the Undervalued Company of the Week.
SRE DCF valuation: what the price assumes
At a recent price of $82.81, Sempra (SRE) trades 47% above TickerWorth's blended fair value of $56.16 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices SRE overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -32.2% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values SRE at about $46.12 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 Sempra's projected free cash flows at a weighted-average cost of capital (WACC) of 7.0%, 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 — the market is implying roughly 8.1% annual revenue growth for SRE. Our base case instead compounds to about 1.9% 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, SRE's modeled DCF value ranges from about $11.94 to $164.29 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 Sempra 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 SRE's intrinsic value. Figures update as new filings and prices come in.
Every input behind SRE's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | $13,552,000,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 28.3% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | -0% → 1% → 2% → 3% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.3% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.56 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 654M |
| Market priceBackup price feed · as of 2026-10-21 00:03 UTC | $82.81 |
Change SRE'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 Sempra do?
What does it do?
Sempra engages in the regulated utilities business in the United States and Mexico. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. It operates in the Utilities - Diversified industry (Utilities sector), headquartered in United States. The company employs roughly 15,938 people.
How does it make money?
The business turns $12.4B in annual revenue into profit. Out of every $100 of sales, about $28 is left as operating profit (operating margin of 28.3%), after a 44% gross margin on the products/services it sells. After all costs, taxes and interest, 16.8% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries modest debt (0.8× equity), comfortably covers its short-term bills (1.6× current ratio), and is currently profitable.
Who at SRE filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Winn Caroline Ann | Executive Vice President | Open-market sale | $8,985.00 | Form 4 for Winn Caroline Ann (opens sec.gov in a new tab) | |
| Winn Caroline Ann | Executive Vice President | Open-market sale | $715,424.00 | Form 4 for Winn Caroline Ann (opens sec.gov in a new tab) | |
| Ferrero Pablo | Director | Open-market sale | $232,778.00 | Form 4 for Ferrero Pablo (opens sec.gov in a new tab) | |
| DAY DIANA L | Chief Legal Counsel | Open-market sale | $304,029.00 | Form 4 for DAY DIANA L (opens sec.gov in a new tab) | |
| Weaving Anya | Director | Grant / award | — | Form 4 for Weaving Anya (opens sec.gov in a new tab) | |
| MARK RICHARD J | Director | Grant / award | — | Form 4 for MARK RICHARD J (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 SRE's intrinsic value?
TickerWorth's blended fair value for Sempra (SRE) is $56.16 per share, versus a market price of $82.81 (47% above fair value).
Is SRE overvalued or undervalued?
On our blended fair value SRE looks overvalued vs fair value at $82.81. This is an educational estimate, not advice.
What discount rate is used for SRE?
A WACC of 7.0% and a terminal growth rate of 2.5%.
Is Sempra stock undervalued?
TickerWorth's fair value for Sempra (SRE) is $56.16 against a market price of $82.81. Our read: 47% above fair value. This is a model estimate, not investment advice.
Sempra (SRE) DCF valuation and fair value
Our fair value for Sempra (SRE) is $56.16, built on a 7.0% 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 Sempra stock?
Today's price implies revenue growth of 8.1% a year for 5 years; our model assumes 1.9% 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 $82.81. A model estimate, not investment advice.
Sempra (SRE) insider trading
The most recent insider filing (SEC Form 4) for Sempra (SRE): Winn Caroline Ann, Executive Vice President, open-market sale on 2026-06-17. The latest filings are listed on this page. A disclosure, not a signal to trade.
Stocks below our fair value instead
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.
Save this valuation
SRE goes on your watchlist, where its valuation is re-run as new filings land — so you read the current number, not the one from today.