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Eversource Energy: Utilities Top Picks Eversource, Evergy, and Duke Have Good Growth and Attractive Valuations

Eversource Energy is currently trading at $61.39, which is 14% below its fair value estimate of $73.00, indicating it is undervalued. The company has a market cap of $22.52 billion and is expected to see earnings growth supported by significant investments in infrastructure and clean energy initiatives. Despite regulatory challenges in Connecticut, Eversource's strategic focus on electric and gas distribution positions it well for future growth.

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Eversource Energy: Utilities Top Picks Eversource, Evergy, and Duke Have Good Growth and Attractive Valuations

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Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD

| Exchange: NEW YORK STOCK EXCHANGE, INC. Page 1 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Last Price Fair Value Estimate Price/FVE Market Cap Economic MoatTM Equity Style Box Uncertainty Capital Allocation ESG Risk Rating Assessment1
61.39 USD 73.00 USD 0.84 22.52 USD Bil None 4 Mid Value Low Standard ;;;;;
14 Mar 2025 14 Feb 2024 20:33, UTC 14 Mar 2025 5 Mar 2025 06:00, UTC

Price vs. Fair Value

Fair Value: 73.00

14 Feb 2024 20:33, UTC
87
Last Close: 61.39
78 Overvalued
Undervalued
69

51
2020 2021 2022 2023 2024 YTD
1.33 1.30 1.13 0.83 0.79 0.84 Price/Fair Value
4.36 7.95 -5.05 -23.16 -2.32 8.21 Total Return %
Morningstar Rating

Total Return % as of 14 Mar 2025. Last Close as of 14 Mar 2025. Fair Value as of 14 Feb 2024 20:33, UTC.
Contents
Analyst Note (3 Mar 2025) Utilities Top Picks Eversource, Evergy, and Duke Have Good
Business Description
Business Strategy & Outlook (12 Feb 2025) Growth and Attractive Valuations
Bulls Say / Bears Say (12 Feb 2025)
Analyst Note Travis Miller, Strategist, 3 Mar 2025
Economic Moat (12 Feb 2025)
Fair Value and Profit Drivers (12 Feb 2025) Although US utilities have continued to rally this year and are now 8% overvalued based on our fair
Risk and Uncertainty (24 Jan 2025) value estimates, we still think there are a few utilities with attractive valuations. Our top sector picks
Capital Allocation (12 Feb 2025) are Eversource Energy, Evergy, and Duke Energy.
Analyst Notes Archive
Financials Why it matters: The Morningstar US Utilities Index is up 5% this year, building on its 27% return in
ESG Risk 2024. Most US utilities now trade above our fair value estimates.
Appendix
u Eversource is one of the cheapest US utilities, trading at a 14% discount to our $73 fair value
Research Methodology for Valuing Companies
estimate and P/E of 13, a 30% discount to the sector median.
Important Disclosure
The conduct of Morningstar’s analysts is governed by Code of Ethics/Code of
u Duke ($117) and Evergy ($67) trade near our fair value estimates but have growth opportunities that
Conduct Policy, Personal Security Trading Policy (or an equivalent of), and
could earn them premium valuations if they execute.
Investment Research Policy. For information regarding conflicts of interest, please
visit: http://global.morningstar.com/equitydisclosures.
The bottom line: We are reaffirming our fair value estimates and moat ratings for our three top picks.
The primary analyst covering this company does not own its stock.
All three raised their investment plans recently, supporting our 6% annual earnings growth outlooks.
The ESG Risk Rating Assessment is a representation of Sustainalytics’ ESG Risk
1

Rating. u We expect Eversource's earnings per share growth to accelerate starting in 2026 after management
raised their five-year capital investment plan 5% to $24.2 billion.
u Evergy and Duke should benefit from new energy demand and investment. Evergy raised its five-year
investment plan 8% to $17.5 billion. Duke raised its five-year plan 14% to $83 billion.

Big picture: Energy demand growth from large customers, notably data centers, remains a key sector
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 2 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Sector Industry
theme but is still two to three years away for most utilities.
f Utilities Utilities - Regulated Electric
u Large facilities under or nearing construction support Evergy's 2%-3% annual demand growth
Business Description
outlook. Similarly, Duke expects 3%-4% growth beginning in 2027 supporting 5 gigawatts of new
Eversource Energy is a diversified holding company with
subsidiaries that provide rate-regulated electric and gas natural gas generation.
distribution service to more than 4 million customers in u Eversource's investments in Massachusetts and balance sheet deleveraging should boost earnings.
the Northeast US. The company plans to sell its water This should make up for its lack of data center growth and challenging Connecticut regulation.
utility, Aquarion, in 2025. Eversource expanded its
service territories with acquisitions of NStar (2012), Coming up: Eversource, Evergy, and Duke face state regulatory proceedings this year that will be key to
Aquarion (2017), and Columbia Gas (2020). In 2024 meeting 2026-27 growth targets.
Eversource exited its 50% partnership with European
utility Orsted to develop 2 gigawatts of offshore wind Business Strategy & Outlook Travis Miller, Strategist, 12 Feb 2025
projects in the Northeast US. The company exited most
of its unregulated businesses in 2006. Eversource Energy has returned to its roots as a mostly rate-regulated electric and gas distribution utility
in the Northeast after exiting a multiyear effort to develop several large offshore wind projects and
selling its water utility.

We think Eversource's utilities have ample growth opportunities to build electric and gas infrastructure
as the Northeast states pursue aggressive clean energy goals.

We assume Eversource invests $19 billion in 2025-28 at its electric and gas utilities to help meet
regional clean energy targets and strengthen the grid. This should support 6% annual average earnings
and dividend growth.

Some state regulators have pushed back on customer rate increases, limiting the upside for
shareholders. Challenging rate regulation in Connecticut could affect Eversource's growth plans in the
state. If regulation in the state becomes more constructive, Eversource might add to its growth
investment plan.

Massachusetts remains an attractive area for investment with constructive regulation, support for grid
modernization investments, and ambitious clean energy legislation. Almost all of Eversource's revenue is
decoupled from usage, supporting consistent cash flow growth.

Electric transmission also remains a key earnings growth driver. Eversource has averaged $1 billion of
investment in transmission annually for the last decade and we expect that to continue. Transmission
earnings already are more than 40% of consolidated earnings and that share could climb. Transmission
to connect offshore wind projects is a growth opportunity.

Eversource was one of the first US utilities to pursue offshore wind development, but management
reversed course in 2022 and took nearly $2 billion of impairment charges after tax in 2023. Despite the
losses, Eversource will avoid potential cost overruns by exiting its 50% stake in three projects. This gives
Eversource more flexibility to fund its transmission and distribution growth projects that earn a steady
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 3 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Competitors
Eversource Energy ES Consolidated Edison Inc ED Public Service...rise Group Inc PEG

Fair Value Last Close Last Close

73.00 106.41 81.53
Uncertainty : Low
Fair Value Fair Value
Last Close 93.00 70.00
61.39 Uncertainty : Low Uncertainty : Low

Economic Moat None None Narrow

Currency USD USD USD
Fair Value 73.00 14 Feb 2024 20:33, UTC 93.00 14 Nov 2024 01:16, UTC 70.00 11 Mar 2025 18:31, UTC
1-Star Price 91.25 116.25 87.50
5-Star Price 58.40 74.40 56.00
Assessment Undervalued 14 Mar 2025 Overvalued 14 Mar 2025 Overvalued 14 Mar 2025
Morningstar Rating QQQQ14 Mar 2025 21:29, UTC QQ14 Mar 2025 21:30, UTC QQ14 Mar 2025 21:29, UTC
Analyst Travis Miller, Strategist Travis Miller, Strategist Travis Miller, Strategist
Capital Allocation Standard Standard Standard
Price/Fair Value 0.84 1.14 1.16
Price/Sales 1.85 2.42 3.96
Price/Book 1.50 1.68 2.52
Price/Earning 13.43 19.71 24.67
Dividend Yield 4.72% 3.14% 2.98%
Market Cap 22.52 Bil 37.57 Bil 40.65 Bil
52-Week Range 54.75—69.01 87.16—107.97 63.31—95.22
Investment Style Mid Value Mid Value Mid Blend

regulated return.

Bulls Say Travis Miller, Strategist, 12 Feb 2025

u Eversource raised its dividend 5% to $3.01 per share annualized for 2025, continuing a long streak of

robust dividend increases that we think will continue for at least several more years.
u State renewable energy mandates present a huge challenge for the Northeast's energy infrastructure

and a growth opportunity for Eversource.

u Even though federal transmission returns have come down, they still represent a premium to state-

allowed returns, driving earnings growth.

Bears Say Travis Miller, Strategist, 12 Feb 2025

u High energy prices in the Northeast can lead regulators to lower the returns Eversource is allowed to

earn on its infrastructure, depressing Eversource's earnings growth.

© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 4 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

u Eversource's experience with the Northern Pass transmission project and offshore wind shows how

difficult it is to gain support for large energy infrastructure projects.

u Rising interest rates could make Eversource a less attractive investment relative to fixed-income

alternatives.

Economic Moat Travis Miller, Strategist, 12 Feb 2025

We do not think Eversource has an economic moat. Although regulated utilities' service territory
monopolies and efficient scale advantages remain, we are not confident that Eversource can achieve
and maintain a positive spread between long-term earned returns on capital and costs of capital for
more than 10 years, the threshold to earn a narrow moat rating.

The primary reasons for this uncertainty are Eversource's history of challenging regulatory relations and
struggles executing projects outside of its core utilities. This has depressed returns on capital.

Connecticut, which represents about one fourth of Eversource's earnings, remains a volatile regulatory
environment. Regulatory relationships had been improving until power outages related to Storm Isaias
in 2020 renewed regulatory animosity. Regulatory outcomes haven't improved much since then. Most
recently, Eversource has alleged regulators are violating state law with some of their ratemaking
processes.

Prior to Isaias, Eversource had secured its most constructive regulatory outcome in Connecticut in recent
history with a three-year rate settlement in February 2018 that included a rare increase in its allowed
return on equity to 9.25% and rate decoupling. This ended a four-year stretch with no rate increases and
brought its allowed ROE more in line with most other US utilities.

Before the 2018 settlement, regulators in 2014 had approved only half of Eversource's rate increase
request and cut its allowed ROE to 9.09% for 2014-15 and 9.17% beyond 2015. The US average awarded
ROE topped 10% at the time. Connecticut regulators in 2010 approved just 57% of Eversource's
requested rate increase with a 9.4% allowed ROE, among the lowest in the US at the time.

Massachusetts and New Hampshire remain mostly constructive regulatory environments and we expect
Eversource will be able to earn close to its allowed returns in those states. Massachusetts regulators in
late 2022 extended NStar's five-year performance-based electric rate plan, which we consider more
constructive than traditional cost-of-service ratemaking. Massachusetts regulators most recently have
supported Eversource's investments to make the electric grid more efficient and reliable.

Eversource previously faced challenges with rate regulation for its interstate transmission business,
which is more than 40% of consolidated earnings. In 2014, the Federal Energy Regulatory Commission
cut Eversource's interstate transmission allowed ROE to 10.57% from 11.14%. This led to a $0.10 per
share charge in the second quarter of 2014 (4% of consolidated earnings). Eversource continues to face
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 5 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

pending FERC rate challenges and could suffer another rate cut.

Management did an impressive job managing costs and realizing savings since its 2012 merger with
NStar. This is one way it has earned back support from regulators and stabilized returns on capital while
pursuing an aggressive investment plan. Eversource also is engaging policymakers on issues such as
lowering energy prices in the Northeast and increasing the region's share of renewable energy.

Fair Value and Profit Drivers Travis Miller, Strategist, 12 Feb 2025

Our fair value estimate is $73 per share after incorporating 2024 results in line with our expectations,
management's latest capital investment plan, and the Aquarion sale.

We assume Eversource invests $19 billion in 2025-28 at its electric and gas utilities and receives
constructive regulatory rulings.

Our investment outlook supports our 6% average annual earnings growth forecast, in line with
management's 5%-7% target. Although growth likely will be slower in 2025 due to higher financing
costs, we think growth will accelerate in 2026 and beyond. Incremental investment opportunities
particularly in Massachusetts should offset any regulatory setbacks.

We assume management can keep operating cost growth below inflation. This will be a challenge,
given the company's investment plan and potential customer growth.

The Aquarion deal terms are in line with our expectations. We previously incorporated a $1 per share
loss in our fair value estimate.

We assume a 7.5% cost of equity and a 6.0% cost of capital in our discounted cash flow valuation. A
2.25% long-term inflation outlook underpins our capital cost assumptions. We incorporate $13 per share
of additional equity value to account for the benefits accruing to Eversource from issuing debt at rates
below our cost of debt.

Risk and Uncertainty Travis Miller, Strategist, 24 Jan 2025

We give Eversource a Morningstar Uncertainty Rating of Low.

Regulatory risk remains the key uncertainty. Eversource is constantly in front of regulators seeking
approval for capital investments and customer rate adjustments. Eversource's large capital investment
plan will require continued regulatory support to produce earnings growth.

Eversource has derisked its capital investment budget by finding smaller distribution projects to offset
the loss of large growth projects it proposed but ultimately exited, notably Northern Pass and offshore
wind. Eversource's offshore wind investments offered a potential earnings boost in 2024-25 before
management decided to exit the projects.
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 6 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Eversource likely will continue to face FERC challenges related to its transmission rates.

Eversource faces environmental, social, and governance risk, given the aggressive clean-energy goals in
the Northeast and its operations of natural gas distribution businesses. Eversource is addressing ESG
risk through its investment plan focused on supporting clean energy and improving safety and reliability.

We think Eversource can meet its goal to be carbon emissions-neutral by 2030. There is risk that
policymakers will move retail customers away from gas heating, but we think that's unlikely in the near
future, given the colder climates where Eversource operates.

Capital Allocation Travis Miller, Strategist, 12 Feb 2025

We assign Eversource a Standard Capital Allocation rating based on management's ability to navigate
challenging regulation while growing earnings and the dividend.

Eversource's abrupt decision in 2022 to exit offshore wind allows it to redirect capital to growth projects
at its rate-regulated utilities. This reduces Eversource's risk of costly offshore wind project delays and
cost overruns that would lower shareholder returns. However, the deteriorating economics of offshore
wind resulted in sale proceeds that were well below Eversource's investment.

In Massachusetts, Eversource has regulatory and policy support for some of its distribution network
growth investments. Eversource received approval for multiyear grid modernization investments that will
flow through customer rates without base rate cases. Management has faced more difficult regulation
in Connecticut, leading them to slow investment in the state.

Management has done a good job hitting its cost-saving targets following the NStar, Aquarion, and
Columbia Gas acquisitions. However, Eversource had to take a $300 million loss when it agreed to sell
Aquarion for $2.4 billion in 2025 given the large premium it paid in 2017.

Eversource CEO Joe Nolan and his two predecessors, Jim Judge and Thomas May, came from NStar
with the 2012 merger. Judge oversaw a marked improvement in regulatory relations, additional
acquisitions, and the offshore wind growth strategy. Nolan, who had led Eversource's offshore wind
efforts before becoming CEO, is now unwinding some of those investments to focus on the company's
core electric and gas utilities.

Analyst Notes Archive

Eversource Earnings: Working Through Balance Sheet Constraints Will Boost Growth Travis
Miller,Strategist,12 Feb 2025

Eversource reported earning $4.57 per share in 2024, excluding a $2.30 impairment charge for its
offshore wind sales and pending Aquarion Water sale. Earnings were up 5% from 2023, slightly better
than our outlook and within management's $4.52-$4.60 earnings per share guidance range. Why it
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 7 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

matters: Eversource's rate-regulated electric and natural gas utilities will account for the bulk of core
earnings growth in 2025 and beyond after Eversource exited its offshore wind business and reached an
agreement to sell Aquarion Water for $2.4 billion. Management raised its five-year capital investment
plan to $24.2 billion for 2025-29, in line with our estimate, excluding Aquarion. This is up from its 2024-
28 plan that totaled $22 billion after removing planned Aquarion investments. Our 2025 EPS estimate is
in line with management's $4.67-$4.82 guidance range. The bottom line: We are reaffirming our $73 fair
value estimate and no-moat rating for Eversource. Eversource's stock trades at a 16% discount to our
fair value estimate as of Feb. 12, making it one of the cheapest in the sector. The P/E of 13, based on
our 2025 EPS estimate, is a 20% discount to the sector median P/E. We continue to assume earnings
growth will accelerate in 2026, making up for slower growth in 2025 and reaching management's 5%-
7% long-term target. Big picture: Eversource should be able to strengthen its balance sheet in 2025-26
with cash from the Aquarion sale, storm cost recoveries, offshore wind sales, and tax equity investment.
We expect Eversource to use the cash to pay down parent debt and fund its large capital investment
plan, reducing its equity needs. Eversource raised the dividend 5% for 2025 to $3.01 per share
annualized, in line with our expectations. Coming up: We expect regulators in all three states that
Eversource serves to rule on rate increase requests during 2025. These decisions will be key to meeting
growth targets in 2026.

Eversource: Aquarion Water Sale in Line With Expectations Travis Miller,Strategist,28 Jan 2025

Eversource announced it reached an agreement to sell its Aquarion water subsidiary to a new joint
municipal entity in Connecticut for $2.4 billion, including $1.6 billion of cash and $800 million of
extinguished debt. We expect the deal to clear all regulatory approvals. Why it matters: Following the
Aquarion sale and Eversource's offshore wind exit, nearly all of Eversource's earnings will come from its
rate-regulated electric and gas distribution utilities. The Aquarion sale price at 1.7 times 2024 rate base
is in line with our expectation. This results in a $1 per share reduction in shareholder value that we
already incorporated in our fair value estimate. Eversource plans to record a $300 million loss on the
sale in 2024, consistent with our expectation that the sale price and accumulated earnings would not
recoup all $900 million of goodwill associated with the 2017 acquisition. The bottom line: We are
reaffirming our $73 fair value estimate and no-moat rating for Eversource. Eversource's stock trades at a
20% discount to our fair value estimate as of Jan. 27, making it one of the cheapest in the sector. Its 13
P/E is a 35% discount to the sector median P/E. We continue to assume 6% annual earnings growth, in
line with management's 5%-7% target. Big picture: Cash proceeds from the Aquarion sale ease the
pressure on Eversource to issue new equity in 2025-26 to fund its capital investments. We expect
Eversource to collect about $1.5 billion in cash from customer rate increases and deferred cost recovery
during the next year. Offshore wind sales and tax equity investment should generate about $1.5 billion
of cash. Coming up: Eversource plans to announce its 2024 earnings and an updated capital investment
plan on Feb. 12. We expect management to add about $1 billion to its current $22 billion five-year
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 8 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

capital investment plan, excluding Aquarion.

Eversource Earnings: Out of Offshore Wind, Management Commits to Regulated Utility Strategy
Travis Miller,Strategist,5 Nov 2024

Eversource is on track to meet our full-year 2024 earnings outlook and management's $4.52-$4.60 EPS
guidance range after reporting $1.13 per share of earnings during the third quarter, excluding a $1.46
impairment charge for its offshore wind sales. Why it matters: Substantially all of Eversource's earnings
will come from its rate-regulated electric, gas, and water utilities starting in the fourth quarter after
exiting its offshore wind business. Management's commitment to invest exclusively at the company's
rate-regulated utilities is reflected in its $23.1 billion capital investment plan in 2024-28, in line with our
assumption. Regulatory approval of Eversource's $600 million Electric Sector Modernization Plan in
Massachusetts is another sign that utility regulation remains mostly constructive in the state. The
bottom line: We are reaffirming our $73 fair value estimate and no moat rating for Eversource.
Eversource's stock trades at a 13% discount to our fair value estimate as of Nov. 4, making it one of the
cheapest in the sector. Its 14 P/E is a 20% discount to the sector median P/E. We continue to assume
6% annual earnings growth, in line with management's 5%-7% target. Big picture: Eversource should
bring in enough cash during the next year to improve its balance sheet and fund growth investments.
Offshore wind sales and tax equity investment should generate about $1.5 billion of cash. We also
expect Eversource to collect about $1.5 billion in cash from customer rate increases and deferred cost
recovery during the next year. We included about $1 billion of new equity issuance in 2024-25,
excluding a possible Aquarion Water sale. Coming up: Management said it could announce an Aquarion
deal by early 2025. We incorporate a $1-per-share negative impact in our fair value estimate assuming
Eversource sells Aquarion at a lower valuation than what is implied in our base fair value estimate.

Eversource Earnings: Regulatory Developments Could Affect Growth Plans Travis Miller,Strategist,2
Aug 2024

We are reaffirming our $73 per share fair value estimate for Eversource Energy after the company
reported operating earnings totaling $0.95 per share in the second quarter, down from $1 in the second
quarter of 2023. We are reaffirming our no-moat rating.Eversource is one of the cheapest US utilities in
our coverage, trading at a 10% discount to our fair value estimate as of Aug. 1. The stock has trailed the
Morningstar US Utilities Index throughout most of the year until the last month when it has rallied 17%.
We think the market is becoming more comfortable with Eversource's cash flow outlook as it closes the
sales of its offshore wind projects and shows signs of constructive regulatory
developments.Management reaffirmed its $4.50-$4.67 EPS guidance range for 2024, in line with our
estimate and implying 6% earnings growth. We continue to forecast annual earnings and dividend
growth within management's 5%-7% target range.Achieving that growth depends on Eversource's
ability to execute its $23 billion capital investment plan during the next five years. Some of that
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 9 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

potential investment in Connecticut is in flux depending on whether the regulatory environment

improves.In New Hampshire, Eversource's recent $182 million rate increase request will be another key
regulatory test. We don't expect regulators to approve the full request. Separately, we think new state
legislation that supports a long-term resource planning process is a constructive signal that could
support growth investment.Eversource management said they are on track to close the sale of the South
Fork and Revolution Wind projects in the third quarter, completing their offshore wind exit and bringing
in $1.8 billion of gross proceeds in the next few years. This along with recovery of deferred regulatory
charges should keep equity issuances around management's $1.3 billion target. Selling Aquarion Water
could reduce that equity need or support more growth investment.

Eversource Earnings: Focus Turns to Connecticut Regulation, Balance Sheet Travis Miller,Strategist,2
May 2024

We are reaffirming our $73 fair value estimate for Eversource Energy after the company reported
operating earnings totaling $1.49 per share in the first quarter, up from $1.41 in the first quarter of
2023. We are reaffirming our no-moat rating.Eversource is one of the cheapest US utilities in our
coverage, trading at a 15% discount to our fair value estimate as of May 2. The stock has trailed the
Morningstar US Utilities Index throughout the last year as investors fret about Eversource's offshore
wind investments, continuing regulatory challenges in Connecticut, and impact on the balance
sheet.Management reaffirmed its $4.50-$4.67 EPS guidance range for 2024, in line with our estimate.
We continue to forecast annual earnings and dividend growth within management's 5%-7% target
range. Proceeds from the wind investments and regulatory recoveries should keep Eversource well
within investment-grade credit metrics. Just a few months after Eversource raised its five-year capital
investment plan by 7% to $23 billion, management announced it is cutting planned investment in
Connecticut by $100 million this year and $500 million over the next five years. We assume
management can reallocate that investment in Massachusetts or New Hampshire. We've always
considered Connecticut a challenging regulatory jurisdiction and assumed minimal growth investment
in the state.Eversource is on track to complete its offshore wind exit this year and collect $1.6 billion of
proceeds during the next three years from Revolution and South Fork. The company still hasn't disclosed
a sale price for the Sunrise deal. We assume the sales price will be value-neutral.The timing of its
planned water utility sale seems less certain. We assume that Eversource sells Aquarion at a valuation
lower than what is implied in our fair value estimate given the drop in water utility valuations since
Eversource's acquisition in 2017. A favorable deal price could boost our fair value estimate slightly.

Eversource: Offshore Wind Exit Progressing; Stock Remains One of Cheapest US Utilities Travis
Miller,Strategist,22 Mar 2024

We are reaffirming our $73 fair value estimate for Eversource Energy after several developments in the
past month primarily involving the company's offshore wind projects. We are also reaffirming our no-
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 10 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

moat rating. Eversource is one of the cheapest US utilities in our coverage, trading at a 20% discount to
our fair value estimate as of March 21 after falling 28% since April 2023.One positive development was
the startup of South Fork (New York), the only project in which Eversource retains a financial interest
through a tax equity investment. This should help 2024-25 earnings and is incorporated into our fair
value estimate.Sunrise Wind (New York) won a rebid auction in late February, securing what appears to
be about a 10% increase in the price for its power sales, although contracts aren't finalized. We think
this will be sufficient for Orsted to go forward with its deal to buy Eversource's 50% interest. The
companies have not disclosed a deal price, and contingencies remain. We assume the deal is value-
neutral.The Sunrise Wind deal would complete Eversource's offshore wind exit; however, the company
remains liable for cost overruns at Revolution Wind (Connecticut, Rhode Island) as part of its $1.1 billion
deal with Global Infrastructure Partners. We assume any cost overruns don't have a material impact on
our fair value estimate.We continue to forecast annual earnings and dividend growth within
management's 5%-7% target range. We recently raised our fair value estimate to reflect a $1.6 billion, or
7%, increase in management's five-year investment plan, a much larger increase than we anticipated.
Our 2024 earnings per share estimate is in line with management's $4.50-$4.67 guidance.We also await
updates on management's plan to sell the Aquarion water subsidiary. We assume that Eversource sells
Aquarion at a valuation lower than what is implied in our fair value estimate. A favorable deal price
could boost our fair value estimate slightly. K

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Competitors Price vs. Fair Value

Consolidated Edison Inc ED

Last Close: 106.41

101 Fair Value: 93.00
14 Nov 2024 01:16, UTC

91 Overvalued
Undervalued
81

61
2020 2021 2022 2023 2024 YTD
0.90 1.09 1.11 1.02 0.96 1.14 Price/Fair Value
-16.73 22.35 15.41 -1.15 1.74 20.21 Total Return %
Morningstar Rating

Total Return % as of 14 Mar 2025. Last Close as of 14 Mar 2025. Fair Value as of 14 Nov 2024 01:16, UTC.

Public Service Enterprise Group Inc PEG

Last Close: 81.53

98 Fair Value: 70.00
11 Mar 2025 18:31, UTC

83 Overvalued
Undervalued
68

38
2020 2021 2022 2023 2024 YTD
1.12 1.24 0.94 0.94 1.24 1.16 Price/Fair Value
2.05 17.96 -4.95 3.53 42.09 -2.76 Total Return %
Morningstar Rating

Total Return % as of 14 Mar 2025. Last Close as of 14 Mar 2025. Fair Value as of 11 Mar 2025 18:31, UTC.

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Morningstar Valuation Model Summary

Financials as of 03 Mar 2025 Actual Forecast
Fiscal Year, ends 31 Dec 2022 2023 2024 2025 2026 2027 2028 2029
Revenue (USD Mil) 12,289 11,911 11,901 12,339 12,897 13,456 14,000 14,451
Operating Income (USD Mil) 4,216 3,541 4,718 5,066 5,380 5,691 5,997 6,237
EBITDA (USD Mil) 3,392 3,705 4,139 4,661 5,072 5,489 5,889 6,143
Adjusted EBITDA (USD Mil) 3,392 3,705 4,139 4,661 5,072 5,489 5,889 6,143
Net Income (USD Mil) 1,405 -442 812 1,758 1,919 2,063 2,207 2,328
Adjusted Net Income (USD Mil) 1,405 -442 812 1,758 1,919 2,063 2,207 2,328
Free Cash Flow To The Firm (USD Mil) -746 2,223 -738 4,550 -63 288 922 1,695
Weighted Average Diluted Shares Outstanding (Mil) 347 350 358 368 369 375 382 384
Earnings Per Share (Diluted) (USD) 4.05 -1.26 2.27 4.78 5.19 5.50 5.78 6.05
Adjusted Earnings Per Share (Diluted) (USD) 4.09 4.34 4.57 4.78 5.19 5.50 5.78 6.05
Dividends Per Share (USD) 2.70 2.86 3.01 3.17 3.33 3.49 3.65 3.81
Margins & Returns as of 03 Mar 2025 Actual Forecast
3 Year Avg 2022 2023 2024 2025 2026 2027 2028 2029 5 Year Avg
Operating Margin % 20.3 34.3 29.7 39.7 41.1 41.7 42.3 42.8 43.2 27.1
EBITDA Margin % — 27.6 31.1 34.8 37.8 39.3 40.8 42.1 42.5 —
Adjusted EBITDA Margin % — 27.6 31.1 34.8 37.8 39.3 40.8 42.1 42.5 40.5
Net Margin % 4.8 11.4 -3.7 6.8 14.2 14.9 15.3 15.8 16.1 15.3
Adjusted Net Margin % 4.9 11.4 -3.7 6.8 14.2 14.9 15.3 15.8 16.1 15.3
Free Cash Flow To The Firm Margin % 2.1 -6.1 18.7 -6.2 36.9 -0.5 2.1 6.6 11.7 11.4
Growth & Ratios as of 03 Mar 2025 Actual Forecast
3 Year CAGR 2022 2023 2024 2025 2026 2027 2028 2029 5 Year CAGR
Revenue Growth % 6.5 24.6 -3.1 -0.1 3.7 4.5 4.3 4.1 3.2 4.0
Operating Income Growth % 9.0 15.6 -16.0 33.3 7.4 6.2 5.8 5.4 4.0 5.7
EBITDA Growth % 10.2 9.6 9.2 11.7 12.6 8.8 8.2 7.3 4.3 8.2
Adjusted EBITDA Growth % 10.2 9.6 9.2 11.7 12.6 8.8 8.2 7.3 4.3 8.2
Earnings Per Share Growth % -13.8 14.2 -131.3 -279.5 110.8 8.6 5.9 5.1 4.8 21.7
Adjusted Earnings Per Share Growth % -13.8 6.0 6.1 5.3 4.6 8.6 5.9 5.1 4.8 21.7
Valuation as of 03 Mar 2025 Actual Forecast
2022 2023 2024 2025 2026 2027 2028 2029
Price/Earning 20.5 14.2 12.6 12.8 11.8 11.2 10.6 10.1
Price/Sales 2.4 1.8 1.8 1.8 1.7 1.7 1.6 1.6
Price/Book 1.9 1.5 1.4 1.4 1.4 1.3 1.2 1.2
Price/Cash Flow — — — — — — — —
EV/EBITDA 15.0 12.8 12.0 11.1 10.2 9.4 8.8 8.4
EV/EBIT 12.1 13.4 10.5 10.2 9.6 9.1 8.6 8.3
Dividend Yield % 3.2 4.6 5.2 5.2 5.4 5.7 5.9 6.2
Dividend Payout % 66.0 65.9 65.9 66.3 64.1 63.5 63.2 62.9
Free Cash Flow Yield % — — — — — — — —
Operating Performance / Profitability as of 03 Mar 2025 Actual Forecast
Fiscal Year, ends 31 Dec 2022 2023 2024 2025 2026 2027 2028 2029
ROA % 2.6 -0.8 1.4 3.0 3.2 3.3 3.4 3.4
ROE % 9.0 -3.1 5.3 11.1 11.5 11.4 11.5 11.5
ROIC % 5.4 5.9 7.0 8.0 8.0 7.5 7.4 7.4

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Financial Leverage (Reporting Currency) Actual Forecast

Fiscal Year, ends 31 Dec 2022 2023 2024 2025 2026 2027 2028 2029
Debt/Capital % 37.7 39.3 44.0 50.1 50.0 49.9 49.8 49.6
Assets/Equity 3.4 3.9 3.9 3.7 3.6 3.5 3.4 3.4
Net Debt/EBITDA 5.3 5.4 5.5 5.6 5.6 5.4 5.3 5.2
Total Debt/EBITDA 5.3 5.5 5.5 6.0 5.6 5.4 5.3 5.2
EBITDA/ Net Interest Expense 10.2 1.4 2.8 5.5 5.5 5.4 5.4 5.4
Forecast Revisions as of 3 Mar 2025 2025 2026 2027
Prior data as of 12 Feb 2025 Current Prior Current Prior Current Prior
Fair Value Estimate Change (Trading Currency) 73.00 73.35 — — — —
Revenue (USD Mil) 12,339 13,715 12,897 14,221 13,456 14,831
Operating Income (USD Mil) 5,066 5,138 5,380 5,383 5,691 5,739
EBITDA (USD Mil) 4,661 4,588 5,072 5,031 5,489 5,473
Net Income (USD Mil) 1,758 1,774 1,919 1,958 2,063 2,160
Earnings Per Share (Diluted) (USD) 4.78 4.79 5.19 5.26 5.50 5.73
Adjusted Earnings Per Share (Diluted) (USD) 4.78 4.79 5.19 5.26 5.50 5.73
Dividends Per Share (USD) 3.17 3.16 3.33 3.31 3.49 3.46

Key Valuation Drivers as of 03 Mar 2025 Discounted Cash Flow Valuation as of 03 Mar 2025
Cost of Equity % 7.5 USD Mil
Pre-Tax Cost of Debt % 5.5 Present Value Stage I 6,580
Weighted Average Cost of Capital % 6.0 Present Value Stage II 3,519
Long-Run Tax Rate % 24.0 Present Value Stage III 40,490
Stage II EBI Growth Rate % 5.0 Total Firm Value 50,589
Stage II Investment Rate % 70.0
Perpetuity Year 10 Cash and Equivalents 27
Additional estimates and scenarios available for download at https://pitchbook.com/. Debt 28,791
Other Adjustments 4,930
Equity Value 26,755

Projected Diluted Shares 367

Fair Value per Share (USD) 73.00

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

ESG Risk Rating Breakdown

Exposure Subject Subindustry (62.0) u Exposure represents a company’s vulnerability to ESG

Company Exposure1 48.0 risks driven by their business model
48.0
u Exposure is assessed at the Subindustry level and then
– Manageable Risk 44.7 Medium
2 0 55+ specified at the company level
Unmanageable Risk 3.3
Low Medium High u Scoring ranges from 0-55+ with categories of low, me-

dium, and high-risk exposure

Management
u Management measures a company’s ability to manage
Manageable Risk 44.7 ESG risks through its commitments and actions
67.0%
– Managed Risk3 29.9 Strong
u Management assesses a company's efficiency on ESG

Management Gap4 14.7 100 0 programs, practices, and policies

Strong Average Weak u Management score ranges from 0-100% showing how

Overall Unmanaged Risk 18.1 much manageable risk a company is managing

ESG Risk Rating ESG Risk Rating Assessment5

18.08
Low

Negligible Low Medium High Severe ESG Risk Rating is of Mar 05, 2025. Highest Controversy Level is as of Mar
08, 2025. Sustainalytics Subindustry: Multi-Utilities. Sustainalytics provides
ESG Risk Ratings measure the degree to which a company’s value is impacted by environmental, social, and governance Morningstar with company ESG ratings and metrics on a monthly basis and
risks, by evaluating the company’s ability to manage the ESG risks it faces. as such, the ratings in Morningstar may not necessarily reflect current
Sustainalytics’ scores for the company. For the most up to date rating and
1. A company's Exposure to material ESG issues 2. Unmanageable Risk refers to risks that are inherent to a particular business model that cannot be managed by more information, please visit: sustainalytics.com/esg-ratings/.
programs or initiatives 3. Managed Risk = Manageable Risk multiplied by a Management score of 67.0% 4. Management Gap assesses risks that are not
managed, but are considered manageable 5. ESG Risk Rating Assessment = Overall Unmanaged Risk = Management Gap plus Unmanageable Risk

Peer Analysis 05 Mar 2025 Peers are selected from the company's Sustainalytics-defined Subindustry and are displayed based on the closest market cap values
Company Name Exposure Management ESG Risk Rating

Eversource Energy 48.0 | Medium 0 55+ 67.0 | Strong 100 0 18.1 | Low 0 40+

Public Service Enterprise Group Inc 61.5 | High 0 55+ 63.6 | Strong 100 0 25.3 | Medium 0 40+

PG&E Corp 69.5 | High 0 55+ 60.7 | Strong 100 0 30.5 | High 0 40+

Appendix
Historical Morningstar Rating
Eversource Energy ES 14 Mar 2025 21:29, UTC

Dec 2025 Nov 2025 Oct 2025 Sep 2025 Aug 2025 Jul 2025 Jun 2025 May 2025 Apr 2025 Mar 2025 Feb 2025 Jan 2025
- - - - - - - - - QQQQ QQQQ QQQQQ
Dec 2024 Nov 2024 Oct 2024 Sep 2024 Aug 2024 Jul 2024 Jun 2024 May 2024 Apr 2024 Mar 2024 Feb 2024 Jan 2024
QQQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQQQ QQQQQ
Dec 2023 Nov 2023 Oct 2023 Sep 2023 Aug 2023 Jul 2023 Jun 2023 May 2023 Apr 2023 Mar 2023 Feb 2023 Jan 2023
QQQQ QQQQQ QQQQQ QQQQ QQQQ QQQ QQQQ QQQQ QQ QQQ QQQ QQ
Dec 2022 Nov 2022 Oct 2022 Sep 2022 Aug 2022 Jul 2022 Jun 2022 May 2022 Apr 2022 Mar 2022 Feb 2022 Jan 2022
QQ QQ QQQ QQ Q QQ QQ Q Q QQ QQ QQ
Dec 2021 Nov 2021 Oct 2021 Sep 2021 Aug 2021 Jul 2021 Jun 2021 May 2021 Apr 2021 Mar 2021 Feb 2021 Jan 2021
Q QQ QQ QQ Q Q QQ QQ Q Q QQ Q
Dec 2020 Nov 2020 Oct 2020 Sep 2020 Aug 2020 Jul 2020 Jun 2020 May 2020 Apr 2020 Mar 2020 Feb 2020 Jan 2020
Q Q Q Q Q Q Q Q Q Q Q Q

Consolidated Edison Inc ED 14 Mar 2025 21:30, UTC

Dec 2025 Nov 2025 Oct 2025 Sep 2025 Aug 2025 Jul 2025 Jun 2025 May 2025 Apr 2025 Mar 2025 Feb 2025 Jan 2025
- - - - - - - - - QQ QQ QQQ
Dec 2024 Nov 2024 Oct 2024 Sep 2024 Aug 2024 Jul 2024 Jun 2024 May 2024 Apr 2024 Mar 2024 Feb 2024 Jan 2024
QQQ QQ QQ QQ QQ QQQ QQQ QQQ QQQ QQQ QQQ QQQ
Dec 2023 Nov 2023 Oct 2023 Sep 2023 Aug 2023 Jul 2023 Jun 2023 May 2023 Apr 2023 Mar 2023 Feb 2023 Jan 2023
QQQ QQQ QQQ QQQ QQQ QQ QQQ QQ QQ QQ QQQ QQ
Dec 2022 Nov 2022 Oct 2022 Sep 2022 Aug 2022 Jul 2022 Jun 2022 May 2022 Apr 2022 Mar 2022 Feb 2022 Jan 2022
QQ QQ QQQ QQQ QQ QQ QQ QQ QQ QQ QQ QQ
Dec 2021 Nov 2021 Oct 2021 Sep 2021 Aug 2021 Jul 2021 Jun 2021 May 2021 Apr 2021 Mar 2021 Feb 2021 Jan 2021
QQ QQQ QQQQ QQQ QQQ QQQQ QQQQ QQQ QQQ QQQQ QQQQ QQQQ
Dec 2020 Nov 2020 Oct 2020 Sep 2020 Aug 2020 Jul 2020 Jun 2020 May 2020 Apr 2020 Mar 2020 Feb 2020 Jan 2020
QQQQ QQQ QQQ QQQQ QQQQ QQQQ QQQQ QQQQ QQQ QQQ QQQ QQ

Public Service Enterprise Group Inc PEG 14 Mar 2025 21:29, UTC

Dec 2025 Nov 2025 Oct 2025 Sep 2025 Aug 2025 Jul 2025 Jun 2025 May 2025 Apr 2025 Mar 2025 Feb 2025 Jan 2025
- - - - - - - - - QQ QQ QQ
Dec 2024 Nov 2024 Oct 2024 Sep 2024 Aug 2024 Jul 2024 Jun 2024 May 2024 Apr 2024 Mar 2024 Feb 2024 Jan 2024
Q Q Q Q QQ QQ QQ QQ QQQ QQQ QQQQ QQQQ
Dec 2023 Nov 2023 Oct 2023 Sep 2023 Aug 2023 Jul 2023 Jun 2023 May 2023 Apr 2023 Mar 2023 Feb 2023 Jan 2023
QQQ QQQ QQQQ QQQQ QQQQ QQQ QQQQ QQQQ QQQ QQQQ QQQQ QQQ
Dec 2022 Nov 2022 Oct 2022 Sep 2022 Aug 2022 Jul 2022 Jun 2022 May 2022 Apr 2022 Mar 2022 Feb 2022 Jan 2022
QQQQ QQQQ QQQQ QQQQ QQQ QQQ QQQ QQ QQ QQ QQQ QQ
Dec 2021 Nov 2021 Oct 2021 Sep 2021 Aug 2021 Jul 2021 Jun 2021 May 2021 Apr 2021 Mar 2021 Feb 2021 Jan 2021
QQ QQ QQ QQ QQ QQ QQ QQ QQ QQ QQQ QQQ
Dec 2020 Nov 2020 Oct 2020 Sep 2020 Aug 2020 Jul 2020 Jun 2020 May 2020 Apr 2020 Mar 2020 Feb 2020 Jan 2020
QQ QQ QQ QQQ QQQ QQQ QQQ QQQ QQQ QQQQ QQQ QQ

Research Methodology for Valuing Companies

Overview turns on invested capital (or ROIC) over and above our es- rive our annual free cash flow forecast.
At the heart of our valuation system is a detailed projec- timate of a firm’s cost of capital, or weighted average
Stage II: Fade
tion of a company’s future cash flows, resulting from our cost of capital (or WACC). Without a moat, profits are
The second stage of our model is the period it will take
analysts’ research. Analysts create custom industry and more susceptible to competition. We have identified five
the company’s return on new invested capital—the re-
company assumptions to feed income statement, balance sources of economic moats: intangible assets, switching
turn on capital of the next dollar invested (“RONIC”)—to
sheet, and capital investment assumptions into our glob- costs, network effect, cost advantage, and efficient scale.
decline (or rise) to its cost of capital. During the Stage II
ally standardized, proprietary discounted cash flow, or
Companies with a narrow moat are those we believe are period, we use a formula to approximate cash flows in
DCF, modeling templates. We use scenario analysis, inde-
more likely than not to achieve normalized excess returns lieu of explicitly modeling the income statement, balance
pth competitive advantage analysis, and a variety of other
for at least the next 10 years. Wide-moat companies are sheet, and cash flow statement as we do in Stage I. The
analytical tools to augment this process. Moreover, we
those in which we have very high confidence that excess length of the second stage depends on the strength of
think analyzing valuation through discounted cash flows
returns will remain for 10 years, with excess returns more the company’s economic moat. We forecast this period to
presents a better lens for viewing cyclical companies,
likely than not to remain for at least 20 years. The longer last anywhere from one year (for companies with no eco-
high-growth firms, businesses with finite lives (e.g.,
a firm generates economic profits, the higher its intrinsic nomic moat) to 10–15 years or more (for wide-moat com-
mines), or companies expected to generate negative
value. We believe low-quality, no-moat companies will panies). During this period, cash flows are forecast using
earnings over the next few years. That said, we don’t dis-
see their normalized returns gravitate toward the firm’s four assumptions: an average growth rate for EBI over the
miss multiples altogether but rather use them as support-
cost of capital more quickly than companies with moats. period, a normalized investment rate, average return on
ing cross-checks for our DCF-based fair value estimates.
new invested capital (RONIC), and the number of years
We also acknowledge that DCF models offer their own
When considering a company's moat, we also assess until perpetuity, when excess returns cease. The invest-
challenges (including a potential proliferation of estim-
whether there is a substantial threat of value destruction, ment rate and return on new invested capital decline un-
ated inputs and the possibility that the method may miss
stemming from risks related to ESG, industry disruption, til a perpetuity value is calculated. In the case of firms
shortterm market-price movements), but we believe these
financial health, or other idiosyncratic issues. In this con- that do not earn their cost of capital, we assume marginal
negatives are mitigated by deep analysis and our
text, a risk is considered potentially value destructive if its ROICs rise to the firm’s cost of capital (usually attribut-
longterm approach.
occurrence would eliminate a firm’s economic profit on a able to less reinvestment), and we may truncate the
cumulative or midcycle basis. If we deem the probability second stage.
Morningstar’s equity research group (”we,” “our”) be-
lieves that a company’s intrinsic worth results from the of occurrence sufficiently high, we would not characterize
the company as possessing an economic moat. Stage III: Perpetuity
future cash flows it can generate. The Morningstar Rating
Once a company’s marginal ROIC hits its cost of capital,
for stocks identifies stocks trading at a discount or premi-
2. Estimated Fair Value we calculate a continuing value, using a standard per-
um to their intrinsic worth—or fair value estimate, in
Combining our analysts’ financial forecasts with the petuity formula. At perpetuity, we assume that any
Morningstar terminology. Five-star stocks sell for the
firm’s economic moat helps us assess how long returns growth or decline or investment in the business neither
biggest risk adjusted discount to their fair values, where-
on invested capital are likely to exceed the firm’s cost of creates nor destroys value and that any new investment
as 1-star stocks trade at premiums to their intrinsic worth.
capital. Returns of firms with a wide economic moat rat- provides a return in line with estimated WACC.
Four key components drive the Morningstar rating: (1) our ing are assumed to fade to the perpetuity period over a
longer period of time than the returns of narrow-moat Because a dollar earned today is worth more than a dollar
assessment of the firm’s economic moat, (2) our estimate
firms, and both will fade slower than no-moat firms, in- earned tomorrow, we discount our projections of cash
of the stock’s fair value, (3) our uncertainty around that
creasing our estimate of their intrinsic value. flows in stages I, II, and III to arrive at a total present
fair value estimate and (4) the current market price. This
value of expected future cash flows. Because we are
process ultimately culminates in our singlepoint star rat-
Our model is divided into three distinct stages: modeling free cash flow to the firm—representing cash
ing.
available to provide a return to all capital providers—we
discount future cash flows using the WACC, which is a
1. Economic Moat Stage I: Explicit Forecast
weighted average of the costs of equity, debt, and pre-
The concept of an economic moat plays a vital role not In this stage, which can last five to 10 years, analysts
ferred stock (and any other funding sources), using ex-
only in our qualitative assessment of a firm’s long-term make full financial statement forecasts, including items
pected future proportionate long-term, market-value
investment potential, but also in the actual calculation of such as revenue, profit margins, tax rates, changes in
weights.
our fair value estimates. An economic moat is a structural workingcapital accounts, and capital spending. Based on
feature that allows a firm to sustain excess profits over a these projections, we calculate earnings before interest,
3. Uncertainty Around That Fair Value Estimate
long period of time. We define economic profits as re- after taxes (EBI) and the net new investment (NNI) to de-
Morningstar’s Uncertainty Rating is designed to capture
the range of potential outcomes for a company’s intrinsic
Morningstar Equity Research Star Rating Methodology
value. This rating is used to assign the margin of safety
required before investing, which in turn explicitly drives
our stock star rating system. The Uncertainty Rating is
aimed at identifying the confidence we should have in as-
signing a fair value estimate for a given stock.

Our Uncertainty Rating is meant to take into account any-

thing that can increase the potential dispersion of future
outcomes for the intrinsic value of a company, and any-
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 17 of 20

Research Methodology for Valuing Companies

thing that can affect our ability to accurately predict Morningstar Equity Research Star Rating Methodology
these outcomes. The rating begins with a suggested rat-
ing produced by a quantitative process based on the trail-
ing 12-month standard deviation of daily stock returns.
An analyst overlay is then applied, with analysts using
the suggested rating, historical rating data, and their own
knowledge of the company to inform them as they make
the final Uncertainty Rating decision. Ultimately, the rat-
ing decision rests with the analyst. Analysts take into ac-
count many characteristics when making their final de-
cision, including cyclical factors, operational and financial
factors such as leverage, company-specific events, ESG
risks, and anything else that might increase the potential
dispersion of future outcomes and our ability to estimate
those outcomes.

Our recommended margin of safety—the discount to fair

value demanded before we’d recommend buying or
selling the stock—widens as our uncertainty of the es-
timated value of the equity increases. The more uncertain
we are about the potential dispersion of outcomes, the
greater the discount we require relative to our estimate of
the value of the firm before we would recommend the
purchase of the shares. In addition, the Uncertainty Rat-
ing provides guidance in portfolio construction based on
risk tolerance. Once we determine the fair value estimate of a stock, we justed return is highly likely over a multiyear time frame.
compare it with the stock’s current market price on a Scenario analysis developed by our analysts indicates
Our Uncertainty Ratings are: Low, Medium, High, Very daily basis, and the star rating is automatically re-calcu- that the current market price represents an excessively
High, and Extreme. lated at the market close on every day the market on pessimistic outlook, limiting downside risk and maximiz-
which the stock is listed is open. Our analysts keep close ing upside potential.
Margin of Safety
tabs on the companies they follow, and, based on thor-
Qualitative Analysis
QRating ough and ongoing analysis, raise or lower their fair value QQQQ We believe appreciation beyond a fair risk-ad-
Uncertainty Ratings QQQQQRating
estimates as warranted. justed return is likely.
Low 20% Discount 25% Premium
Medium 30% Discount 35% Premium QQQ Indicates our belief that investors are likely to re-
Please note, there is no predefined distribution of stars.
High 40% Discount 55% Premium ceive a fair risk-adjusted return (approximately cost of
That is, the percentage of stocks that earn 5 stars can
Very High 50% Discount 75% Premium equity).
fluctuate daily, so the star ratings, in the aggregate, can
Extreme 75% Discount 300% Premium
serve as a gauge of the broader market’s valuation. When
there are many 5-star stocks, the stock market as a whole QQ We believe investors are likely to receive a less than
Our uncertainty rating is based on the interquartile range, fair risk-adjusted return.
is more undervalued, in our opinion, than when very few
or the middle 50% of potential outcomes, covering the
companies garner our highest rating.
25th percentile–75th percentile. This means that when a Q Indicates a high probability of undesirable risk-adjus-
stock hits 5 stars, we expect there is a 75% chance that ted returns from the current market price over a multiyear
We expect that if our base-case assumptions are true the
the intrinsic value of that stock lies above the current time frame, based on our analysis. Scenario analysis by
market price will converge on our fair value estimate over
market price. Similarly, when a stock hits 1 star, we ex- our analysts indicates that the market is pricing in an ex-
time generally within three years (although it is im-
pect there is a 75% chance that the intrinsic value of that cessively optimistic outlook, limiting upside potential and
possible to predict the exact time frame in which market
stock lies below the current market price. leaving the investor exposed to Capital loss.
prices may adjust).

4. Market Price Our star ratings are guideposts to a broad audience and Other Definitions
The market prices used in this analysis and noted in the individuals must consider their own specific investment Last Price: Price of the stock as of the close of the mar-
report come from exchange on which the stock is listed goals, risk tolerance, tax situation, time horizon, income ket of the last trading day before date of the report.
which we believe is a reliable source. needs, and complete investment portfolio, among other
factors. Capital Allocation Rating: Our Capital Allocation (or
For more details about our methodology, please go to Stewardship) Rating represents our assessment of the
https://shareholders.morningstar.com The Morningstar Star Ratings for stocks are defined be- quality of management’s capital allocation, with particu-
low: lar emphasis on the firm’s balance sheet, investments,
Morningstar Star Rating for Stocks QQQQQ We believe appreciation beyond a fair risk ad- and shareholder distributions. Analysts consider compan-
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 18 of 20

Research Methodology for Valuing Companies

ies’ investment strategy and valuation, balance sheet starting at zero (no risk) with lower scores representing vice to any specific investor. Therefore, investments dis-
management, and dividend and share buyback policies. less unmanaged risk and, for 95% of cases, the unman- cussed herein may not be suitable for all investors; in-
Corporate governance factors are only considered if they aged ESG Risk score is below 50. vestors must exercise their own independent judgment as
are likely to materially impact shareholder value, though to the suitability of such investments and recommenda-
either the balance sheet, investment, or shareholder dis- Based on their quantitative scores, companies are tions in the light of their own investment objectives, ex-
tributions. Analysts assign one of three ratings: "Exem- grouped into one of five Risk Categories (negligible, low, perience, taxation status and financial position. Morning-
plary", "Standard", or "Poor". Analysts judge Capital Alloc- medium, high, severe). These risk categories are absolute, star encourages Report recipients to read all relevant is-
ation from an equity holder’s perspective. Ratings are de- meaning that a ‘high risk’ assessment reflects a compar- sue documents (e.g., prospectus) pertaining to the secur-
termined on a forward looking and absolute basis. The able degree of unmanaged ESG risk across all subindus- ity concerned, including without limitation, information
Standard rating is most common as most managers will tries covered. relevant to its investment objectives, risks, and costs be-
exhibit neither exceptionally strong nor poor capital alloc- fore making an investment decision and when deemed
ation. The ESG Risk Rating Assessment is a visual representa- necessary, to seek the advice of a financial, legal, tax,
tion of Sustainalytics ESG Risk Categories on a 1 to 5 and/or accounting professional. The information, data,
Capital Allocation (or Stewardship) analysis published pri- scale. Companies with Negligible Risk = 5 Globes, Low analyses and opinions presented herein are not warran-
or to Dec. 9, 2020, was determined using a different pro- Risk = 4, Medium Risk = 3 Globes, High Risk = 2 Globes, ted to be accurate, correct, complete or timely. Unless
cess. Beyond investment strategy, financial leverage, and Severe Risk = 1 Globe. For more information, please visit otherwise provided in a separate agreement, neither
dividend and share buyback policies, analysts also con- sustainalytics.com/esg-ratings/ Morningstar, Inc. or the Equity Research Group repres-
sidered execution, compensation, related party transac- ents that the report contents meet all of the presentation
tions, and accounting practices in the rating. Ratings should not be used as the sole basis in evaluating and/or disclosure standards applicable in the jurisdiction
a company or security. Ratings involve unknown risks and the recipient is located.
Capital Allocation Rating: Our Capital Allocation (or uncertainties which may cause our expectations not to
Stewardship) Rating represents our assessment of the occur or to differ significantly from what was expected Except as otherwise required by law or provided for in a
quality of management’s capital allocation, with particu- and should not be considered an offer or solicitation to separate agreement, the analyst, Morningstar, Inc. and
lar emphasis on the firm’s balance sheet, investments, buy or sell a security. the Equity Research Group and their officers, directors
and shareholder distributions. Analysts consider compan- and employees shall not be responsible or liable for any
ies’ investment strategy and valuation, balance sheet Risk Warning trading decisions, damages or other losses resulting from,
management, and dividend and share buyback policies. Please note that investments in securities are subject to or related to, the information, data, analyses or opinions
Corporate governance factors are only considered if they market and other risks and there is no assurance or guar- within the report.
are likely to materially impact shareholder value, though antee that the intended investment objectives will be
either the balance sheet, investment, or shareholder dis- achieved. Past performance of a security may or may not The Report and its contents are not directed to, or inten-
tributions. Analysts assign one of three ratings: "Exem- be sustained in future and is no indication of future per- ded for distribution to or use by, any person or entity who
plary", "Standard", or "Poor". Analysts judge Capital Alloc- formance. A security investment return and an investor’s is a citizen or resident of or located in any locality, state,
ation from an equity holder’s perspective. Ratings are de- principal value will fluctuate so that, when redeemed, an country or other jurisdiction where such distribution, pub-
termined on a forward looking and absolute basis. The investor’s shares may be worth more or less than their lication, availability or use would be contrary to law or
Standard rating is most common as most managers will original cost. A security’s current investment performance regulation or which would subject Morningstar, Inc. or its
exhibit neither exceptionally strong nor poor capital alloc- may be lower or higher than the investment performance affiliates to any registration or licensing requirements in
ation. noted within the report. Morningstar’s Uncertainty Rating such jurisdiction.
serves as a useful data point with respect to sensitivity
Capital Allocation (or Stewardship) analysis published pri- analysis of the assumptions used in our determining a fair Where this report is made available in a language other
or to Dec. 9, 2020, was determined using a different pro- value price. than English and in the case of inconsistencies between
cess. Beyond investment strategy, financial leverage, and the English and translated versions of the report, the Eng-
dividend and share buyback policies, analysts also con- lish version will control and supersede any ambiguities
sidered execution, compensation, related party transac- General Disclosure associated with any part or section of a report that has
tions, and accounting practices in the rating. been issued in a foreign language. Neither the analyst,
Unless otherwise provided in a separate agreement, re-
cipients accessing this report may only use it in the coun- Morningstar, Inc., or the Equity Research Group guaran-
Sustainalytics ESG Risk Rating Assessment:The ESG tees the accuracy of the translations.
try in which the Morningstar distributor is based. Unless
Risk Rating Assessment is provided by Sustainalytics; a
stated otherwise, the original distributor of the report is
Morningstar company. This report may be distributed in certain localities, coun-
Morningstar Research Services LLC, a U.S.A. domiciled
financial institution. tries and/or jurisdictions (“Territories”) by independent
Sustainalytics’ ESG Risk Ratings measure the degree to third parties or independent intermediaries and/or distrib-
which company’s economic value at risk is driven by en- utors (“Distributors”). Such Distributors are not acting as
This Report is for informational purposes, should not be
vironment, social and governance (ESG) factors. agents or representatives of the analyst, Morningstar,
the sole piece of information used in making an invest-
ment decision, and has no regard to the specific invest- Inc. or the Equity Research Group. In Territories where a
Sustainalytics analyzes over 1,300 data points to assess a Distributor distributes our report, the Distributor is solely
ment objectives, financial situation or particular needs of
company’s exposure to and management of ESG risks. In responsible for complying with all applicable regulations,
any specific recipient. This publication is intended to
other words, ESG Risk Ratings measures a company’s un- laws, rules, circulars, codes and guidelines established by
provide information to assist investors in making their
managed ESG Risks represented as a quantitative score. local and/or regional regulatory bodies, including laws in
own investment decisions, not to provide investment ad-
Unmanaged Risk is measured on an open-ended scale
© Morningstar 2025. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions ®
presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The
opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting
ß
from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner,
without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and
governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report.
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Research Methodology for Valuing Companies

connection with the distribution third-party research re- on an arms’ length basis including software products distribution in New Zealand to wholesale clients only and
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u No interests are held by the analyst with respect to the website advertising. mendations in this material are provided for general in-
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u Morningstar, Inc. may hold a long position in the se- Further information on Morningstar, Inc.’s conflict of in- ies and investment opportunities specified within. Our re-
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Research Methodology for Valuing Companies

vestment Adviser India Private Limited offers Investment

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Eversource Energy: Utilities Top Picks Eversource, Evergy, and Duke Have Good Growth and Attractive Valuations

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Eversource Energy: Utilities Top Picks Eversource, Evergy, and Duke Have Good Growth and Attractive Valuations

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Morningstar Equity Analyst Report | Report as of 15 Mar 2025 04:15, UTC | Reporting Currency: USD | Trading Currency: USD

| Exchange: NEW YORK STOCK EXCHANGE, INC. Page 1 of 20

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Price vs. Fair Value

Fair Value: 73.00

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Fair Value Last Close Last Close

Economic Moat None None Narrow

Bulls Say Travis Miller, Strategist, 12 Feb 2025

and a growth opportunity for Eversource.

allowed returns, driving earnings growth.

Bears Say Travis Miller, Strategist, 12 Feb 2025

earn on its infrastructure, depressing Eversource's earnings growth.

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

difficult it is to gain support for large energy infrastructure projects.

Economic Moat Travis Miller, Strategist, 12 Feb 2025

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Risk and Uncertainty Travis Miller, Strategist, 24 Jan 2025

We give Eversource a Morningstar Uncertainty Rating of Low.

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Capital Allocation Travis Miller, Strategist, 12 Feb 2025

Analyst Notes Archive

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

capital investment plan, excluding Aquarion.

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

potential investment in Connecticut is in flux depending on whether the regulatory environment

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Competitors Price vs. Fair Value

Consolidated Edison Inc ED

Last Close: 106.41

Public Service Enterprise Group Inc PEG

Last Close: 81.53

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Morningstar Valuation Model Summary

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

Financial Leverage (Reporting Currency) Actual Forecast

Projected Diluted Shares 367

Eversource Energy ES QQQQ 14 Mar 2025 21:29, UTC

ESG Risk Rating Breakdown

Exposure Subject Subindustry (62.0) u Exposure represents a company’s vulnerability to ESG

dium, and high-risk exposure

Management Gap4 14.7 100 0 programs, practices, and policies

Overall Unmanaged Risk 18.1 much manageable risk a company is managing

ESG Risk Rating ESG Risk Rating Assessment5

Consolidated Edison Inc ED 14 Mar 2025 21:30, UTC

Research Methodology for Valuing Companies

Our Uncertainty Rating is meant to take into account any-

Research Methodology for Valuing Companies

Our recommended margin of safety—the discount to fair

Research Methodology for Valuing Companies

Research Methodology for Valuing Companies

Research Methodology for Valuing Companies

vestment Adviser India Private Limited offers Investment

For recipients in Japan: The Report is distributed by Ib-

For recipients in Singapore: For Institutional Investor

For recipients in Korea: The report is distributed by

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