A Look At Constellation Energy (CEG) Valuation After FERC Blocks Amazon Linked Nuclear Power Deal
Constellation Energy (CEG) is under scrutiny after the FERC blocked an Amazon-related nuclear power deal, impacting its stock performance. CEG's share price has declined 21.5% year-to-date, despite a strong 3-year total shareholder return. Analysts suggest a fair value of $399.93, indicating it is undervalued, driven by demand for carbon-free power from data centers. However, risks include potential increases in nuclear compliance costs and fluctuating data center demand. CEG trades at a P/E of 38x, higher than its peers, suggesting a premium that may adjust based on future performance.