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Entergy (ETR) is back in focus after Q1 2026 results and a large-scale electric service agreement with Meta. Together, these developments tie earnings guidance, capital spending plans, and growing data center demand into one story for investors.
See our latest analysis for Entergy.
Entergy’s recent Q1 2026 update and the large Meta data center agreement arrive after a strong run, with a 90 day share price return of 21.42% and a 1 year total shareholder return of 41.36%, suggesting momentum has been building rather than fading.
If the Meta deal has you thinking about power infrastructure, this is also a good moment to scan the wider grid upgrade theme and check out 34 power grid technology and infrastructure stocks
With Entergy trading near its analyst price target and showing a very large intrinsic value gap on some models, investors may wonder whether there is still potential upside or if the market is already pricing in future growth.
Most Popular Narrative: 1% Overvalued
Entergy’s most followed narrative puts fair value at $115.56, just under the last close at $116.43. This frames the current price as very close to fully valued.
Capital investment of $40 billion over four years (with an expanded pipeline for renewables, grid modernization, and resilience upgrades) is expected to grow the company's rate base and support above-average EPS and earnings growth for several years.
Curious what kind of revenue trajectory and margin profile are required to back that spending plan, and what future earnings multiple ties it all together.
Result: Fair Value of $115.56 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, investors still have to weigh funding a US$40b capital plan, as well as the Gulf South weather and regulatory exposure that could pressure returns and earnings visibility.
Find out about the key risks to this Entergy narrative.
Another View: Cash Flows Tell a Very Different Story
While the popular narrative pegs fair value close to $115.56 and flags Entergy as slightly overvalued, the SWS DCF model paints almost the opposite picture. On this view, the shares trade at roughly a 74.5% discount to an estimated future cash flow value of $457.39, which raises a clear question for you: are earnings-based multiples missing something, or is the cash flow model too generous?
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out Entergy for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Seen enough to sense both optimism and unease around Entergy? Take a moment to review the underlying data and judge the trade off for yourself using 3 key rewards and 3 important warning signs .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ETR .
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