Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$126.32
Based on 6.2% avg growth
INTRINSIC VALUE TODAY
$78.43
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 16.9x Exit PE.
Valuation Analysis: SRE is currently trading at $83.34, which is considered oversold relative to its 30-day fair value range of $83.61 to $86.32. From a valuation perspective, the stock is trading at a discount (Forward PE: 15.1) compared to its historical average (16.9). Remarkably, the market is currently pricing in an annual earnings decline of 3.8% over the next few years. This pessimistic expectation contrasts with the company's recent 71.3% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, SRE is in a strong uptrend. Immediate support is located at $79.59, while resistance sits at $87.19.
Market Sentiment: The stock scores a mixed 52/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $101.82 (+22.2%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$83.61 -
$86.32
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
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Sempra Energy serves one of the largest utility customer bases in the United States. It distributes natural gas and electricity in Southern California and owns 80% of Oncor, a transmission and distribution business in Texas. Sempra Infrastructure partners, of which Sempra will hold a 25% ownership, owns and operates liquefied natural gas facilities in North America and infrastructure in Mexico.
