Constellation Energy has had a rough 2026 on the price chart. CEG closed at $270.26, down 26.2% year to date and off 15.3% over the past year. That slide has put valuation back in focus for investors watching the nuclear power space.
Constellation Energy Corporation, CEG
Despite the recent drop, the three-year return still sits at 203.6%, a reminder of how far the stock has come.
A Discounted Cash Flow model run by Simply Wall St puts CEG’s intrinsic value at $484.34 per share. That’s a 44.2% gap to the current price, which the model flags as undervalued. The analysis uses a two-stage free cash flow to equity approach, with the latest twelve-month free cash flow sitting around $601 million and projected cash flows climbing to roughly $7.3 billion by 2030.
On a price-to-earnings basis, CEG trades at 25.46x. That’s above the Electric Utilities industry average of 21.62x and a peer group average of 21.43x. However, Simply Wall St’s internally calculated “Fair Ratio” for CEG is 32.85x, which adjusts for the company’s growth profile and risk characteristics. Against that measure, the current P/E looks low.
The bigger news came Monday. Constellation and Walmart announced a long-term nuclear power purchase agreement covering approximately 176 megawatts of wholesale supply from the Dresden Clean Energy Center in Illinois. That includes 30 megawatts of expanded capacity.
Walmart will purchase energy, environmental attributes, and capacity across two 15-year terms starting in 2029 and 2030. This is Walmart’s first nuclear power purchase agreement and one of the first deals of its kind between a major U.S. retailer and a nuclear facility.
The power will support a high-tech perishable distribution center Walmart is developing in Belvidere, Illinois. The agreement also supports planned uprates at Dresden, which are efficiency upgrades that increase output from existing units.
The Dresden Clean Energy Center holds licenses running through 2049 and 2051. Constellation renewed those licenses in December 2025. The facility supports more than 1,100 jobs.
Bernstein SocGen recently initiated coverage on CEG with an outperform rating. The firm highlighted Constellation’s 22 gigawatts of nuclear capacity and its acquisition of Calpine as key drivers of the investment case.
Calpine, now a Constellation business unit, completed a 25-megawatt geothermal expansion at The Geysers complex in California. That addition will supply electricity to more than 25,000 homes annually.
Constellation also announced a secondary offering of 11 million shares at $281 each, though the company will not receive proceeds from that sale.
William Blair adjusted its data center and power index score to 75 from 78, pointing to challenges in data center projects and power supply constraints. The firm also raised its forecast for the U.S. data center power supply and demand deficit in 2030.
CEG operates 55 gigawatts of total capacity across nuclear, natural gas, geothermal, hydro, wind, and solar facilities.
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