Entergy Corporation (ETR) Stock Analysis
Score DCompounder · Grade F · Unknown
$109.53
$142.39
+30.0%
4/10
F
Compounder
Investment Thesis
Low quantitative score: Low quality, stretched valuation, or poor risk/reward.
For New Investors
Quantitative score: weak
For Current Holders
Quantitative score: low
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $142.39 (+30.0%). Significantly undervalued. (Fair value adjusted: model estimate was outside reasonable range.)
PEG-Based EPS
$142.39
FCF DCF Model
$142.39
EV/EBITDA
$142.39
Blended Fair Value
$142.39
Confidence
High
Methods
PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
37/120 points
Low Quality
ROE (3Y Avg)
11.1%
ROIC-WACC Spread
-1.8%
D/E Ratio
1.8x
Current Ratio
0.7x
Interest Coverage
2x
FCF Positive Years
0/3
Quality Flags
- ROIC spread: -1.8pp (got 0/25 pts)
- FCF positive only 0/3 years (0/20 pts)
- Leverage: D/E 1.8x (6/15 pts)
- Interest coverage: 2.3x (6/10 pts)
- Liquidity: Current Ratio 0.73 (5/10 pts)
- Volatile gross margins: std dev 6.9pp (need <3.0pp)
Market Sentiment
Wall Street Consensus
$115.00
+5.0% Upside
21 analysts
Range: $98.00 — $135.00
Rating: Buy
Our model is more cautious than Wall Street.
Trend & Technical
Insufficient data to calculate SMA 200.
Technical analysis unavailable
Risk & Reward
Asymmetry Ratio
10.00:1
Expected Return
+113.0%
Bull Upside
+200.0%
Bear Downside
-10.0%
Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
See exact entry zones, stop-loss levels, and a personalized action plan.
AI Executive Summary
Get a detailed AI-written breakdown of the investment thesis, risks, and catalysts.
Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of ETR?
Based on our multi-method conviction analysis, the estimated fair value of Entergy Corporation (ETR) is $142.39. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.
Is ETR a buy, sell, or hold?
ETR currently has a AVOID rating with a conviction score of 4/10. Low quantitative score: Low quality, stretched valuation, or poor risk/reward. Quantitative score: weak.
Is ETR a high-quality stock?
Entergy Corporation has a quality grade of F (37/120 points), rated as Low Quality. Key metrics include ROE of 11.1%, ROIC-WACC spread of -1.8%, and D/E ratio of 1.8x.
What type of stock is ETR?
ETR is classified as a "compounder" in our framework. High P/E: 27.9x, Mature growth: -4.5%, High debt: D/E 1.8x, Dividend paying: 2.3%, Consistent FCF: 3/3 years positive
What do Wall Street analysts say about ETR?
21 Wall Street analysts have a consensus price target of $115.00 for ETR, representing +5.0% upside. Targets range from $98.00 to $135.00. The consensus recommendation is "Buy". Our model is more cautious than Wall Street.
What are the risks of investing in ETR?
The risk/reward asymmetry ratio for ETR is 10.00:1, rated as Very Favorable. Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside. The expected return is +113.0%, with bull case upside of +200.0% and bear case downside of -10.0%.
What is the current trend for ETR?
ETR is in a unknown trend. Insufficient data to calculate SMA 200. The technical score is —/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.