2024-03-29 10:00:03 ET
Summary
- Exelon Corporation is the largest electric utility in the United States, with nearly 11 million customers and six regulated utility subsidiaries.
- The company has outlined a $34.5bn capital investment strategy aimed at expanding its rate base at a CAGR of 7.5% and ensuring margin expansion through expense management.
- Additionally, the firm is well-positioned to capitalize on utility megatrends, such as renewables and electrification of the broader economy.
- My discounted cash flow valuation estimated an NPV for Exelon of $38.93, a ~5% undervaluation.
- Therefore, I rate Exelon a 'buy'.
Exelon Corporation ( EXC ) is a Chicago, Illinois-based electric utility - the largest in the United States - with nearly 11 million customers and six regulated utility subsidiaries. The firm primarily maintains a presence in Illinois and the US East Coast....
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Exelon: Rate-Base Scale, Cost Management Drive Upside Potential