Is There Still Value in WEC Energy Group After Its Recent Price Pullback in 2025?

Wondering if WEC Energy Group is still a solid value pick at today’s price, or if the best days are already priced in? Here is a breakdown of what the market is implying and where the hidden signals might be.

The stock has eased back recently, down about 1.3% over the last week and 6.5% over the last month, yet it is still up 10.6% year to date and 13.3% over the past year, adding to a 35.8% gain over five years.

Recent moves have been shaped by shifting expectations for interest rates, regulatory clarity around utility investments, and ongoing discussions about the pace of the energy transition. Together, these factors have nudged investors to reassess both the risk profile and long term growth runway for WEC.

On our valuation framework, WEC Energy Group scores a modest 2/6, suggesting only partial undervaluation on traditional checks. We will unpack those methods next and also point to a more holistic way to judge fair value by the end of this article.

WEC Energy Group scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

The Dividend Discount Model estimates what a stock is worth by projecting all future dividends a company is expected to pay, then discounting those payouts back to today. It is especially useful for mature utilities like WEC Energy Group that pay regular, growing dividends.

For WEC, the model uses a current annual dividend per share of about $4.00, supported by a return on equity of 11.8% and a payout ratio near 69%. That payout level suggests the dividend is covered while still leaving room to reinvest in the business. Simply Wall St caps WEC’s long term dividend growth at 3.26%, slightly below the model’s raw expected growth of about 3.6%, to keep assumptions conservative for a regulated utility.

Using these inputs, the DDM arrives at an intrinsic value of roughly $108.14 per share. Compared with the current market price, this implies WEC Energy Group is about 3.9% undervalued, which is a small gap rather than a deep bargain.

Result: ABOUT RIGHT

WEC Energy Group is fairly valued according to our Dividend Discount Model (DDM), but this can change at a moment’s notice. Track the value in your watchlist or portfolio and be alerted on when to act.

WEC Discounted Cash Flow as at Dec 2025

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for WEC Energy Group.

For profitable, steady earners like regulated utilities, the price to earnings ratio is often the cleanest way to judge valuation because it ties today’s share price directly to the profits shareholders ultimately rely on. A higher or lower PE can be justified by how quickly earnings are expected to grow and how risky or stable those earnings are, so investors tend to pay more for faster growth and more predictable cash flows, and demand a discount for slower or riskier profiles.