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Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
VST — frequently asked questions
Is Vistra Corp. overvalued?
In our latest published analysis dated 2026-10-04, VST looks meaningfully overvalued. The price recorded at analysis is 140 USD versus our fair value of 97,9 USD; the high endpoint is presented separately as potential value of 145 USD. That implies roughly 30.1% downside to fair value at that date.
Our latest published report, analyzed 2026-10-04, gives VST a fair value of 97,9 USD and a potential value of 145 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Vistra Corp.'s archetype; it is a dated research output, not a live price.
Should I buy VST now?
Our latest published rating for VST, analyzed 2026-10-04, is Sell. Vistra Corp. looks meaningfully overvalued at the analysis-date price of 140 USD versus fair value of 97,9 USD; potential value is 145 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for VST?
The dedicated bear-case section in our report analyzed 2026-10-04 documents Vistra Corp.'s material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is VST's rating?
Our latest published rating for VST, analyzed 2026-10-04, is Sell, with a published moat assessment of 6.5/10 (Narrow). It reflects our fair value of 97,9 USD, the potential value of 145 USD, and the price recorded at analysis (140 USD).
Báo cáo này chưa được dịch. Hãy làm mới sau vài phút khi hàng đợi dịch xử lý xong.
§1 Tóm tắt điều hànhEN
Câu trả lời trong 30 giâySell
Giá so với giá trị
Giá
$140.02
Giá trị hợp lý
$97.88
Giá trị tiềm năng
$144.83
Tính đến
2026-10-02
Vì sao luận điểm có thể đúng
The most compelling upside opportunity lies in executing additional high-margin bilateral power purchase agreements with hyperscalers for behind-the-meter or co-located data centers, expanding on the Meta PPA and the Helix Digital Infrastructure partnership with KKR, KIA, and NVIDIA,.
Điều gì sẽ thay đổi quan điểm của chúng tôi
Post-2027 generation hedge roll-off from ~100% in 2026 and ~94% in 2027 to ~72% in 2028 coinciding with sustained wholesale power price softening in ERCOT.
We assign a Sell rating to Vistra Corp. (VST) with a fair value midpoint of $97.88 per share, representing -30.1% implied return from the current trading price of $140.02. Although Vistra demonstrates strong operational execution across its integrated generation and retail platforms, current trading prices reflect an excessive 43.1% premium to intrinsic value that leaves investors highly vulnerable to post-hedge power price deflation, peaker margin compression from battery storage, and debt refinancing friction,.2,4,5
At the analysis price of $140.02, Vistra trades at a 43.1% premium to its fair value midpoint and 13.33x forward earnings. This valuation significantly outpaces intrinsic earning power and reflects an aggressive market-implied growth expectation of 22.63%, well above our analyst base-case growth rate of 18.21%.
Operationally, Vistra has executed effectively on its commercial and fleet initiatives. In Q2 2026, the company generated $1,767 million in Ongoing Operations Adjusted EBITDA, up over 30% year-over-year. Management reaffirmed full-year 2026 Ongoing Operations Adjusted EBITDA guidance of $6,800 million to $7,600 million and Ongoing Operations Adjusted FCFbG guidance of $3,925 million to $4,725 million,. Fleet reliability remained high, achieving commercial availability exceeding 97% during periods of extreme summer heat in ERCOT and PJM. Cash generation visibility is supported by a comprehensive rolling hedge book covering approximately 100% of expected generation volumes in 2026 and 94% in 2027, enabling management to target approximately $3.0 billion in capital returns across 2026 and 2027, including $1.2 billion in remaining share repurchases,.5
Despite these near-term operational successes, fundamental vulnerabilities are emerging across wholesale power markets. CEO Jim Burke acknowledged that wholesale power prices in ERCOT have softened recently due to grid supply additions,, while CFO Kris Moldovan noted that 2026 results are trending toward the lower end of guidance. Generation volume hedge coverage drops sharply to 72% in 2028, leaving future earnings exposed to commodity power deflation as rapid utility-scale battery additions flatten summer evening net peak pricing and compress merchant peaker margins. Furthermore, Vistra carries $20,508 million in total debt, incurring $1,125 million to $1,200 million in annual net interest costs. In an environment where the risk-free rate is 5.24% and VST's weighted average cost of capital is 8.61%, this debt load creates substantial refinancing friction that constrains residual equity cash flows.2,5
The sell-side analyst consensus 12-month price target stands at $212.25 ($193.71 in present-value equivalent when discounted at VST's cost of equity of 9.57%). Our fair value midpoint of $97.88 sits 49.5% below this benchmark. Market consensus assumes that elevated unhedged spark spreads and premium data center contracting will persist indefinitely, whereas our disciplined underwriting explicitly accounts for post-2027 hedge roll-off, terminal competitive return fade, and rising replacement capital costs. With downside risk of 30.1% to our fair value midpoint, we conclude that Vistra's risk-reward profile is skewed negatively, justifying our Sell rating.2,5
Vistra's Retail segment generated $13.03 billion in revenue in FY2025, accounting for 74.1% of consolidated revenue,. This extensive customer footprint creates a physical internal sink for wholesale generation, dampening merchant power price volatility and securing steady retail gross margins.6,7
Robust Multi-Year Hedge Book and Near-Term EBITDA Visibility
Management has hedged approximately 100% of expected generation volumes for 2026 and 94% for 2027, underpinning reaffirmed 2026 Ongoing Operations Adjusted EBITDAguidance of $6.8 billion to $7.6 billion and a 2027 midpoint opportunity of $7.4 billion to $7.8 billion,. This provides near-term cash conversion stability and supports $3 billion in planned capital returns across 2026-2027.5
Structural Data Center Demand and High Incumbent Replacement Costs
Annual grid load growth of 4% to 6% in ERCOT and 2% to 3% in PJM through 2030 coincides with escalating new-build power generation capital costs and multi-year interconnection queues. Incumbent baseload assets benefit from rising scarcity value and long-term bilateral contracting opportunities with hyperscalers, such as the Meta PPA and Helix Digital Infrastructure partnership,.5
Khuyến nghị của hãng
Sell. Vistra Corp. is overvalued at $140.02 per share, standing 43.1% above our rigorously derived fair value midpoint of $97.88. Market enthusiasm surrounding data center electricity contracts and capacity market auctions has priced in unhedged power price escalation while underestimating wholesale spark spread softness in ERCOT and fixed carrying costs on $20.51 billion of debt. With 30.1% downside risk, investors should capitalize on current trading levels to exit or reduce positions.2,4,5
Tổng quan công ty
Vistra Corp. (NYSE: VST) is an integrated retail electricity and power generation company headquartered in Irving, Texas, providing essential power resources and energy solutions to commercial, industrial, and residential customers from California to Maine. The company operates a diversified power generation fleet spanning natural gas, nuclear, coal, solar, and battery energy storage facilities, seamlessly pairing competitive merchant wholesale capacity with an established retail electricity business.
For FY2025, Vistra reported consolidated revenue of $17,586 million. Operating activities are structured across four primary geographic and operational segments: Retail ($13,025 million in FY2025 revenue, representing 74.1% of consolidated revenue), East ($3,311 million), Texas ($918 million), and West ($328 million), complemented by an Asset Closure segment ($4 million),,,,. This integrated structure matches retail customer demand against wholesale output to secure margin realization and dampen market commodity price volatility.
§2 Kịch bản tiêu cựcEN
A joint stress test combining post-hedge wholesale power price deflation, rapid ERCOT battery deployment, and elevated debt refinancing costs demonstrates severe downside risk for Vistra Corp. Current generation hedge coverage drops from approximately 100% in 2026 and 94% in 2027 to 72% in 2028, exposing substantial open merchant capacity to softening wholesale power pricing. In Texas, utility-scale battery additions are already flattening evening peak pricing spreads, directly eroding peaker scarcity rents in a segment that generated $918M in FY2025 revenue,. Concurrently, Vistra carries $20.51B in total debt requiring $1,125M in guided net annual interest paid. Refinancing debt at wider credit spreads pushes WACC from 8.61% toward 10.61%, reducing enterprise valuation to the $61.39 stress floor.
Ongoing Operations Adjusted EBITDA falls below the lower guidance threshold of $6.8B5
Operating margins contract 300 bps below forecast due to battery storage additions5
Terminal valuation multiple de-rates toward merchant cyclical troughs of 11.0x4
In the bear scenario, persistent wholesale power price softening in ERCOT combines with rapid battery additions that eliminate evening peak peaker scarcity rents,. As hedge coverage drops from ~100% in 2026 to ~72% in 2028, unhedged generation output is sold into deflated market curves. Concurrently, refinancing $20.51B in total debt at elevated interest rates tightens free cash flow, while regulatory scrutiny and interconnection audits delay hyperscaler load energization.
Các cách luận điểm này có thể đổ vỡ
ERCOT Spark Spread Collapse and Post-Hedge Power Curve Deflation
CEO Jim Burke reported that power prices in ERCOT have softened recently due to grid supply additions,, while CFO Moldovan noted ongoing performance trends toward the low end of guidance. As hedge coverage rolls off from 100% in 2026 to 72% in 2028, unhedged wholesale price deflation reduces Ongoing Operations Adjusted EBITDA below the lower guidance threshold of $6.8B.5
FV impact
-20.4%
Operating margin 6 points lower throughout
Trigger
Within 12 months
Tín hiệu cảnh báo sớm cần theo dõi
Năm diễn biến có thể làm suy yếu luận điểm đầu tư của chúng tôi.
Vistra Corp. possesses a Narrow economic moat underpinned by two structural advantages: cost advantages derived from low-marginal-cost baseload assets with prohibitive greenfield replacement costs, and efficient scale from its integrated retail electricity franchise. The company's generation fleet, expanded through the acquisitions of Energy Harbor and Lotus, provides critical dispatchable power in congested competitive markets including ERCOT and PJM. As CEO Jim Burke observed, the capital cost of constructing new power generation facilities has continued to tick up, creating an escalating hurdle rate for potential competitors and cementing the value of Vistra's existing commercial availability, which exceeded 97% during summer peak conditions.
Complementing its generation fleet, Vistra's Retail segment acts as a powerful commercial shock absorber. Accounting for 74.1% of consolidated revenue in FY2025 ($13,025M out of $17,586M),, the retail platform matches physical retail load with merchant power generation. This integrated structure locks in margin spreads and avoids value destruction during wholesale power downturns, allowing Vistra to achieve higher cash flow durability than pure merchant peers. While peer Constellation Energy (CEG) boasts higher clean nuclear concentration, Vistra's diversified merchant generation and integrated retail scale produce comparable operational resiliency.
However, Vistra's moat remains Narrow rather than Wide due to inherent merchant commodity exposures and regulatory boundaries. Merchant power markets in ERCOT and PJM remain competitive auction-driven environments without guaranteed rates of return. The rapid deployment of grid-scale batteries is already compressing net summer peak margins, and post-2027 hedge roll-off from 94% to 72% re-exposes fleet cash flows to market power prices. Consequently, competitive advantages support excess returns over a 5- to 10-year horizon but lack the multi-decade durability required for a Wide moat rating.
Lợi nhuận kinh tế
While FY2025 reported ROIC was 8.38% against a WACC of 8.61% due to temporary unrealized hedge losses of $472M, normalized forward earning power demonstrated by reaffirmed FY2026 Ongoing Operations Adjusted EBITDA of $6.8B-$7.6B and cumulative available cash exceeding $10B across 2026-2027 generates economic returns comfortably exceeding the moderate cost of equity of 9.57%.2,5
6.5/ 10
Narrow
Sources of advantage
01Cost Advantage (Baseload Generation and Greenfield Replacement Cost Barrier) — Vistra operates a low-marginal-cost nuclear and combined-cycle gas turbine fleet across PJM and ERCOT. With new-build generation capital costs continuing to tick upward and supply chain lead times for large transformers and turbines stretching multiple years, incumbent dispatchable generation enjoys a strong replacement cost barrier and marginal cost advantage over greenfield entrants.Moderate
02Efficient Scale (Integrated Retail Channel and Physical Load Matching) — Vistra's integrated Retail operations generated $13,025M or 74.1% of consolidated FY2025 revenue ($17,586M),. This massive retail customer base provides a direct, captive channel-to-market that physically matches generation output, dampening wholesale merchant price volatility, lowering customer acquisition costs, and establishing efficient scale that standalone merchant generators or pure retailers cannot replicate.
Mối đe dọa đã biết với lợi thế cạnh tranh
Mối đe dọa
Mức độ
Mốc thời gian
Giảm thiểu
Rapid grid-scale battery storage additions eroding summer evening net peak prices and peaker scarcity rents.
medium
12-36 months
Maintaining disciplined rolling hedge coverage (~100% in 2026, ~94% in 2027, ~72% in 2028), developing proprietary battery assets, and contracting long-term bilateral PPAs.5
The highlighted cell is Fair value when every assumption sits at its base level ($97.88). Each row and column shows what Fair value becomes when one assumption moves.
Free cash flow to the firm stays positive in the first projected year at $2.1B after modeled reinvestment of $1.1B, with terminal value at 76.3% of enterprise value. A sudden drop in free cash flow is not projected unless capital spending relative to revenue, reinvestment, or gross margin resets materially.
ERCOT load growth reaches or exceeds 6% annually through 20305
2027 Ongoing Operations Adjusted EBITDA clears above $7.8B with unmodeled contributions from Cogentrix and Meta PPAs,
§7 Cây quyết định lợi nhuậnEN
Vượt
Upgrade the rating; Maintain disciplined portfolio risk controls and monitor whether incremental operational cash flows are directed toward debt reduction ahead of 2028 hedge roll-offs.
Kích hoạt: Ongoing Operations Adjusted EBITDA exceeding $7.6B with ERCOT realized power prices re-accelerating.5
An earnings beat above the top of the guided range would indicate stronger cash flow capture, supporting a narrowed valuation discount that warrants moving rating to Reduce.
Đúng kỳ vọng
Maintain Sell; Re-examine retail customer retention rates, monitor ERCOT interconnection audits, and track progress on remaining share repurchase execution.
Kích hoạt: Ongoing Operations Adjusted EBITDA delivering within $6.8B to $7.6B and Adjusted FCFbG within $3.93B to $4.73B.5
Meeting reaffirmed guidance leaves intrinsic cash flow projections unchanged, reinforcing that market valuation remains elevated relative to long-term fundamentals.
Hụt
Maintain Sell; Accelerate portfolio trimming and reassess capital structure leverage given high fixed interest obligations.
A guidance miss confirms management commentary that operational performance trends toward the low end of expectations, solidifying the existing rating.
Chất lượng lợi nhuận
Vistra's underlying earnings quality is solid on a normalized cash-generation basis but exhibits significant quarterly GAAP net incomevolatility due to derivative hedge accounting. In Q2 2026, GAAP net income of $305M was reduced by $472M of net unrealized mark-to-market derivative losses on commodity hedges settling in future periods. For the first six months of 2026, Vistra generated $2,222M in operating cash flow against $1,334M in net income, supported by $1,363M in depreciation and amortization. Adjusted EBITDAguidance of $6.8B-$7.6B and Adjusted FCFbG of $3.93B-$4.73B, properly isolate ongoing cash operational performance from non-cash accounting adjustments, though fixed interest charges ($1,125M guided cash interest paid) represent a continuous cash call on earnings.5
Xu hướng dự báo
Analyst consensus estimate momentum following the Q2 2026 earnings release is flat. Diluted EPS consensus for FY2026 remains stable at $9.58 and FY2027 at $10.36, showing 0% post-event percentage change. Revenue consensus underwent modest downward revisions of -0.90% for FY2026 (to $22.48B) and -0.16% for FY2027 (to $24.14B), reflecting stable multi-year hedge coverage offset by management's acknowledgment that ERCOT power price softening is trending performance toward the lower end of guidance ranges.1,5
Hiện tạiReaffirmed at $6.8B-$7.6B for 2026 with management noting performance trends toward the lower end,.
Vì sao quan trọng
Validates whether wholesale power price softness in ERCOT is eroding generation cash margins or whether retail integration protects guided profitability,.5
Vistra displays robust operational cash flow conversion supported by reaffirmed FY2026 Ongoing Operations Adjusted FCFbG guidance of $3,925M to $4,725M. In the first six months of 2026, Vistra generated $2,222M in operating cash flow, more than double the $1,171M generated in the prior-year period. Fleet capital expenditures including nuclear fuel purchases and LTSA prepayments totaled $1,572M for 6M 2026, aligning with full-year guidance of $1,536M in maintenance and operational capex. Total available liquidity stood at approximately $6,295M as of June 30, 2026, including $435M in cash and cash equivalents and $4,408M in corporate revolving credit facility availability. Management expects cumulative available cash generation to exceed $10 billion across 2026 and 2027, underpinning both capital returns and debt service.5
Phân bổ vốn
Vistra exercises disciplined capital allocation focused on returning substantial capital to equity holders while managing fleet maintenance and selective growth investments. Management reaffirmed plans to return approximately $3 billion to equity holders across 2026 and 2027 through repurchases and dividends. Since initiating its share repurchase program in November 2021, Vistra has retired approximately 171 million shares at an average cost of ~$38 per share, representing a ~30% reduction in ,. As of August 2026, ~$1.2 billion remains available under its authorization, expected to be completed no later than year-end 2027. Furthermore, management anticipates $2.0B-$2.5B in unallocated available cash through year-end 2027, providing liquidity headroom and capital allocation flexibility.
The apparent disconnect between historical GAAP profitability and underlying economic earning power is caused by mark-to-market derivative hedge adjustments. As hedge contracts settle against high realized power and capacity auction clearing prices, operating returns expand meaningfully, demonstrating healthy underlying economic profits.
Reported FY2025 ROIC of 8.38% was depressed by unrealized derivative losses, sitting marginally below the company's computed WACC of 8.61%. However, normalized forward ROIC is projected to recover to 12.0%-14.0%, comfortably exceeding WACC and moderate cost of equity of 9.57%.
Integrated Retail operations represent the primary revenue anchor and cash flow stabilizer
Retail accounted for $13,025M of Vistra's $17,586M consolidated FY2025 revenue (74.1%),.
Integrated retail demand provides a physical hedge that absorbs generation output, locking in margin spreads and insulating consolidated cash conversion from wholesale merchant price troughs.
Doanh thu mới nhất17,6 T US$CAGR doanh thu +14,4%
Biên hoạt động10,8%10 kỳ tài chính
Dòng tiền tự do mới nhất1,3 T US$FY2025
Nợ ròng16,3 T US$FY2025
Phân tích báo cáo kết quả kinh doanhQuy mô kinh doanh chuyển thành lợi nhuận báo cáo như thế nào.30 thg 6, 2026
StockMarketAgent.AI
Doanh thu4 T US$Giá vốn doanh thu−3,1 T US$Lợi nhuận gộp945 Tr US$Chi phí hoạt động−392 Tr US$Lợi nhuận hoạt động553 Tr US$Các khoản ngoài hoạt động và thuế−248 Tr US$Lợi nhuận ròng305 Tr US$
Dữ liệu lịch sử tài chính
Doanh thu
4.017.000.000 US$
Giá vốn doanh thu
3.072.000.000 US$
Lợi nhuận gộp
945.000.000 US$
Chi phí hoạt động
392.000.000 US$
Lợi nhuận hoạt động
553.000.000 US$
Các khoản ngoài hoạt động và thuế
-248.000.000 US$
Lợi nhuận ròng
305.000.000 US$
Tổng quan bảng cân đối kế toánCách tài sản đã báo cáo được nắm giữ và tài trợ trong kỳ đã chọn.
StockMarketAgent.AI
Cơ cấu tài sảnNguồn tài trợ
Tổng tài sản41,6 T US$Tiền mặt785 Tr US$Tài sản ngắn hạn9,2 T US$Tổng nợ phải trả36,4 T US$Nợ ngắn hạn11,8 T US$Vốn chủ sở hữu5,1 T US$
Dữ liệu phân tích bảng cân đối kế toán
Tổng tài sản
41.550.000.000 US$
Tiền mặt
785.000.000 US$
Tài sản ngắn hạn
9.179.000.000 US$
Tổng nợ phải trả
36.440.000.000 US$
Nợ ngắn hạn
11.814.000.000 US$
Vốn chủ sở hữu
5.110.000.000 US$
Cầu nối dòng tiềnDòng tiền từ hoạt động chuyển thành dòng tiền tự do như thế nào trong FY2025.
StockMarketAgent.AI
Đối chiếu dòng tiền hoạt động
Lợi nhuận ròng944 Tr US$Khấu hao và phân bổ+2 T US$Thù lao bằng cổ phiếu+113 Tr US$Điều chỉnh hoạt động khác+1 T US$Dòng tiền hoạt động4,1 T US$
Đối chiếu tiền đầu kỳ đến cuối kỳ
Tiền đầu kỳ1,2 T US$Dòng tiền hoạt động+4,1 T US$Dòng tiền đầu tư−4,4 T US$Dòng tiền tài chính−74 Tr US$Tiền cuối kỳ822 Tr US$
4,1 T US$ − 2,8 T US$Dòng tiền tự do 1,3 T US$
Dữ liệu cầu nối dòng tiền
Lợi nhuận ròng
944.000.000 US$
Dòng tiền vào từ hoạt động
4.070.000.000 US$
Khấu hao và phân bổ
1.986.000.000 US$
Thù lao bằng cổ phiếu
113.000.000 US$
Điều chỉnh hoạt động khác
1.027.000.000 US$
Dòng tiền hoạt động
4.070.000.000 US$
Tiền sẵn có
5.292.000.000 US$
Tiền đầu kỳ
1.222.000.000 US$
Dòng tiền ra từ đầu tư
4.396.000.000 US$
Capex
2.752.000.000 US$
Hoạt động đầu tư khác
1.644.000.000 US$
Dòng tiền ra từ tài chính
74.000.000 US$
Phát hành nợ ròng
2.197.000.000 US$
Mua lại cổ phiếu
1.028.000.000 US$
Cổ tức đã trả
306.000.000 US$
Hoạt động tài chính khác
937.000.000 US$
Tiền cuối kỳ
822.000.000 US$
Dòng tiền đầu tư
-4.396.000.000 US$
Dòng tiền tài chính
-74.000.000 US$
Doanh thu theo nhóm kinh doanhTỷ trọng trong tổng doanh thu của 2026-06-30.
4 TTổng doanh thu
Doanh thu theo nhóm kinh doanhTỷ trọng
Cost of3,1 T76,5%
Khác945 Tr23,5%
Dữ liệu cơ cấu doanh thu: Doanh thu theo nhóm kinh doanh
Doanh thu theo nhóm kinh doanh
Doanh thu
Tỷ trọng
so với cùng kỳ
Cost of
3,1 T
76,5%
—
Other
945 Tr
23,5%
—
Doanh thu và lợi nhuậnQuy mô kinh doanh chuyển thành lợi nhuận báo cáo như thế nào.
Tiền mặt và nợThanh khoản sẵn có so với tổng dư nợ.
Tạo dòng tiềnDòng tiền hoạt động so với dòng tiền tự do.
Khả năng sinh lờiDiễn biến biên gộp, biên hoạt động và biên ròng.
Dữ liệu tài chính tại thời điểm được dùng trong phân tích ngày 2026-10-04.
Dữ liệu lịch sử tài chính
Kỳ
Doanh thu
EBITDA
Lợi nhuận ròng
Dòng tiền hoạt động
Dòng tiền tự do
Capex
Khấu hao và phân bổ
Thù lao bằng cổ phiếu
Mua lại cổ phiếu
Cổ tức đã trả
Phát hành nợ ròng
Dòng tiền đầu tư
Dòng tiền tài chính
Tiền đầu kỳ
Tiền cuối kỳ
Tiền mặt và đầu tư
Tổng nợ
Biên hoạt động
ROIC
WACC
Chênh lệch ROIC−WACC
2016-12-31
5,3 T US$
23,3 T US$
22,7 T US$
-157 Tr US$
-509 Tr US$
352 Tr US$
817 Tr US$
3 Tr US$
—
992 Tr US$
—
-1,5 T US$
1,1 T US$
—
1,6 T US$
2,2 T US$
4,6 T US$
5,2%
—
10,2%
—
2017-12-31
5,4 T US$
1,3 T US$
-254 Tr US$
1,4 T US$
1,3 T US$
114 Tr US$
699 Tr US$
0 US$
0 US$
0 US$
—
-727 Tr US$
-201 Tr US$
1,6 T US$
2 T US$
2,3 T US$
4,4 T US$
3,6%
—
5,9%
—
2018-12-31
9,8 T US$
2 T US$
-54 Tr US$
1,5 T US$
941 Tr US$
530 Tr US$
1,4 T US$
73 Tr US$
763 Tr US$
0 US$
—
-101 Tr US$
-2,7 T US$
2 T US$
693 Tr US$
1,4 T US$
11,4 T US$
5,0%
—
7,3%
—
2019-12-31
11,5 T US$
3,4 T US$
928 Tr US$
2,7 T US$
2 T US$
713 Tr US$
1,6 T US$
47 Tr US$
656 Tr US$
243 Tr US$
—
-1,7 T US$
-1,2 T US$
693 Tr US$
475 Tr US$
1 T US$
11,3 T US$
17,3%
—
2,9%
—
2020-12-31
10,9 T US$
3,2 T US$
636 Tr US$
3,3 T US$
2,1 T US$
1,3 T US$
1,7 T US$
65 Tr US$
0 US$
266 Tr US$
—
-1,6 T US$
-1,8 T US$
475 Tr US$
444 Tr US$
425 Tr US$
9,9 T US$
14,0%
—
2,5%
—
2021-12-31
17,7 T US$
852 Tr US$
-1,3 T US$
-206 Tr US$
-1,2 T US$
1 T US$
1,8 T US$
47 Tr US$
471 Tr US$
290 Tr US$
—
-1,2 T US$
2,3 T US$
444 Tr US$
1,4 T US$
1,3 T US$
11 T US$
-8,6%
—
—
—
2022-12-31
15,6 T US$
1,3 T US$
-1,2 T US$
485 Tr US$
-816 Tr US$
1,3 T US$
1,6 T US$
63 Tr US$
1,9 T US$
302 Tr US$
1,9 T US$
-1,2 T US$
-80 Tr US$
1,4 T US$
525 Tr US$
547 Tr US$
13,3 T US$
-7,5%
—
—
—
2023-12-31
13,8 T US$
4,6 T US$
1,5 T US$
5,5 T US$
3,8 T US$
1,7 T US$
1,5 T US$
77 Tr US$
1,2 T US$
313 Tr US$
1,4 T US$
-2,1 T US$
-294 Tr US$
525 Tr US$
3,5 T US$
3,5 T US$
14,4 T US$
19,3%
—
5,3%
—
2024-12-31
14,8 T US$
7,2 T US$
2,7 T US$
4,6 T US$
2,5 T US$
2,1 T US$
1,8 T US$
100 Tr US$
1,3 T US$
305 Tr US$
2,3 T US$
-5,3 T US$
-1,6 T US$
3,5 T US$
1,2 T US$
1,2 T US$
16,3 T US$
27,6%
—
7,4%
—
2025-12-31
17,6 T US$
5,3 T US$
944 Tr US$
4,1 T US$
1,3 T US$
2,8 T US$
2 T US$
113 Tr US$
1 T US$
306 Tr US$
2,2 T US$
-4,4 T US$
-74 Tr US$
1,2 T US$
822 Tr US$
785 Tr US$
17 T US$
10,8%
—
8,9%
—
§9 So sánh định giá với các doanh nghiệp cùng ngành
Giá trị hợp lýReport-date price
Vistra Corp.VST
Giá / giá trị hợp lý
Giá trị hợp lý97,88 US$Report-date price140,02 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư47 / 100
Constellation Energy CorporationCEG
Giá / giá trị hợp lý
Giá trị hợp lý197,53 US$Report-date price260,67 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư64 / 100
Public Service Enterprise Group IncorporatedPEG
Giá / giá trị hợp lý
Giá trị hợp lý90,51 US$Report-date price68,07 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư57 / 100
Vistra Corp.VST
Giá / giá trị hợp lý
Giá trị hợp lý97,88 US$Report-date price140,02 US$
Vistra Corp. (VST) trades at 13.3x forward earnings against a peer median of 15.3x. Its EV/EBITDA of 10.5x compares with a peer median of 13.3x. The comparison uses 4 peers: Constellation Energy Corporation, Public Service Enterprise Group Incorporated, Exelon Corporation and Dominion Energy Inc., as of 2026-10-04.
§10 Ngành và chu kỳEN
Pha chu kỳ
Expansion
The broader utility industry is operating in a capital expansion phase, evidenced by an industry capex-to-depreciation ratio of 2.61x and capex-to-revenue ratio of 24.4%. Equipment replacement costs, turbine pricing, and EPC costs continue to escalate, while grid operators face multi-year interconnection queue backlogs.5
Chu kỳ tăng giá
In a cyclical upswing, multi-gigawatt AI data center power demand drives ERCOT load growth of 4%-6% and PJM growth of 2%-3% through 2030. Severe grid supply constraints, long interconnection queues, and rising new-build power generation capital costs prevent competing greenfield capacity from entering rapidly. This enables incumbent baseload generators to secure multi-year capacity clearing price spikes in PJM and sign premium bilateral power purchase agreements with hyperscalers (Meta, Helix Digital Infrastructure),.
Chu kỳ giảm giá
A cyclical downturn would be triggered by persistent wholesale power price deflation in ERCOT, accelerated battery storage buildouts flattening evening peak scarcity pricing, and regulatory tariff barriers that delay hyperscaler data center interconnections. As multi-year hedge books roll off toward 72% in 2028, unhedged merchant generation volume would be realized at depressed market power curves, compressing operating margins toward cyclical troughs.
Xu hướng dài hạn
Xu hướng
Tác động
Ghi chú
AI Data Center Load Growth and Electrification
positive
Surging computational requirements from artificial intelligence clusters drive forecasted grid load growth of 4%-6% in ERCOT and 2%-3% in PJM through 2030, supporting long-term bilateral contracting premiums with technology counterparties,.
Escalating New-Build Power Plant Capital Replacement Costs
positive
Escalating turbine costs, labor inflation, and extended transmission interconnection queues raise capital barriers to entry for competing greenfield generation, prolonging the economic life and cash-generation durability of incumbent assets.
Định vị
Vistra occupies a unique hybrid positioning within the power sector. Unlike regulated rate-base peers (Public Service Enterprise Group [PEG], Exelon [EXC], Dominion [D]) whose earnings are governed by regulatory return-on-equity caps, Vistra operates as an integrated merchant generator and competitive retailer. Relative to pure merchant peer Constellation Energy (CEG), which trades at 19.33x forward P/E and carries an enterprise value of $115.6B,, Vistra's massive Retail segment (74.1% of revenue) provides superior physical demand matching and lower cash flowvolatility. However, Vistra's $20.51B total debt load introduces greater balance-sheet leverage than regulated peers.2,3,
§11 Quản lý vị thếEN
Quy mô vị thế
0%
Vistra trades at $140.02, representing a 43.1% premium to composite intrinsic fair value of $97.88 and sitting adjacent to the extreme bull valuation ceiling of $144.83. With earnings performance trending toward the lower end of guidance and ERCOT wholesale pricing softening, risk-reward is heavily unfavorable. Under our Sell rating, we recommend maintaining a 0% position weight.4,5
Rủi ro
Risk management focuses on monitoring commodity spark spreads, debt refinancing terms, and regulatory interconnection developments. Vistra's comprehensive rolling hedge program mitigates downside cash volatility through 2027, but rising debt service on $20.51B in total debt requires maintaining strict balance-sheet discipline. Portfolios should avoid unhedged merchant generator concentration and enforce disciplined valuation risk controls.
Đợt vào lệnh
Mức
Hành động
Lý do
$97.88 (Composite Fair Value Midpoint)
Re-assess fundamental operational performance and retail margin durability.
Reaching the compositefair value midpoint eliminates the current 43.1% market premium, bringing price into balance with verified cash flow generation.
$85.00-$90.00 (Margin of Safety Zone)
Begin monitoring for potential long position initiation if merchant power curves stabilize.
Institutional managers should exit or reduce exposure. At $140.02, VST trades at an enterprise value of approximately $67.5 billion, representing a 43.1% premium to our compositefair value midpoint of $97.88. With management confirming that performance is trending toward the low end of 2026 guidance due to ERCOT power price softening and the company burdened by $20.51 billion of total debt, the risk-reward ratio is unfavorable.2,4,5
Income and Total Return Investors
Avoid
Income-focused investors should avoid VST at prevailing levels. Although Vistra projects approximately $3 billion in capital distributions across 2026 and 2027, capital allocation heavily prioritizes share buybacks ($1.2 billion remaining authorization) over dividend yield. This minimal dividend payout provides virtually no cash buffer against the -30.1% capital loss implied by our $97.88 fair value midpoint.5
Tactical and Value Investors
Avoid
Tactical investors should harvest profits following the multi-year valuation re-rating. Market enthusiasm for AI-driven load growth has decoupled the stock price from its fundamental cash flow reality, trading far above the primary FCFFDCF anchor of $72.75 and forward earnings baseline of $111.66. Value investors should remain on the sidelines until the stock approaches our fair value midpoint of $97.88 or until wholesale power curve softening and refinancing headwinds are fully reflected in market valuations.1
§14 Khuyến nghị cuối cùngEN
Hành động
Bán
We recommend that investors Sell Vistra Corp. (VST). At $140.02 as of October 2, 2026, the stock trades at an untenable 43.1% premium to our compositefair value midpoint of $97.88 per share, offering an implied return of -30.1%. While VST's operating execution and near-term hedge visibility remain intact, the market has aggressively priced in hyperscaler data center premiums while completely disregarding wholesale spark spread deflation, battery peak-shaving, and the refinancing drag from $20.51 billion of balance-sheet debt,.2,4,5
Our multi-model valuation framework anchors on a primary Firm Free Cash FlowDCF of $72.75 (45% weight) and Forward Earnings of $111.66 (35% weight),. Although management has hedged approximately 100% of 2026 and 94% of 2027 generation volumes, hedge coverage steps down to 72% in 2028 just as renewable additions and battery storage dampen summer peak scarcity pricing. With 2026 operational performance already tracking toward the lower end of guided Adjusted EBITDA ($6.8B-$7.6B), the risk-reward profile is decidedly asymmetric to the downside, warranting an immediate capital exit.
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Sources
The records this analysis drew on, as they stood when it was run.
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Merchant Valuation De-rating on Regulatory Interconnection Delays
PUC and ERCOT base load pause on Batch Zero audits and widespread regulatory scrutiny over large-load tariffs impair premium data center contracting expectations. This leads to a 20% valuation de-rating from VST's current forward P/E of 13.33x toward historical merchant cyclical troughs of ~10.66x.4,5
FV impact
-8%
Terminal multiple 20% lower
Trigger
Within 6 months
Cost of Capital Spike and High Debt Refinancing Squeeze
Vistra carries $20.51B in total debt creating elevated balance sheet leverage and debt service drag. Refinancing debt at 150-200 bps wider credit spreads and sustained high risk-free rates (5.24%) pushes WACC from 8.61% above 10.61%, severely reducing equity value across capital-intensive fleet assets.2
Severe retail customer churn or inability to pass through procurement costs breaks the physical load matching hedge, collapsing integrated operating margin stability.
Hiện tại:74.1% ($13,025M of $17,586M FY2025 revenue),
Cảnh báo nếu<60.0%
03
ERCOT Annual Load Growth
Falsifies the grid scarcity thesis, demonstrating that large-load data center interconnections are delayed or stalled, leaving merchant generation capacity uncontracted.
Hiện tại:4.0%-6.0% annual growth projected through 2030
Cảnh báo nếu<2.0%
04
Weighted Average Cost of Capital
Credit spreads widen 150-200 bps on refinancing Vistra's $20.51B debt load, increasing debt service drag and compressing equity cash conversion.
Hiện tại:8.61%
Cảnh báo nếu>10.61%
Moderate
Regulatory scrutiny, transmission tariff disputes, and ERCOT interconnection audit delays on large-load data center interconnections,.
medium
6-24 months
Co-locating large-load customers directly at generation sites and engaging with regulators on structured tariff carrots and demand-response frameworks,.5
55,5%
Method
Project EPS through the explicit advantage period, fade growth as competition catches up, and discount the full stream at cost of equity.
Discounted forecast-period cash flows (28,78 US$) plus discounted terminal value (92,41 US$) minus signed per current share (48,44 US$) equals the 72,75 US$ lens value shown above. Negative net debt is , so subtracting it raises value.
In the bull scenario, accelerated AI data center energization, sustained tight PJM capacity auction clears, and commercial bilateral contracts drive margins above base projections. Unmodeled earnings contributions from the pending Cogentrix acquisition and Meta PPAs provide operational upside beyond the $7.4B-$7.8B 2027 Adjusted EBITDA midpoint opportunity,. Incumbent generation assets capture elevated scarcity rents as equipment inflation and interconnection delays restrict competing greenfield supply,.5
Generation Volume Hedge Roll-off Pace
Hiện tạiApproximately 100% hedged for 2026, 94% for 2027, and 72% for 2028 as of August 2026.
Vì sao quan trọng
Hedge coverage provides strong cash visibility through 2027, but the sharp step-down to 72% in 2028 expands unhedged open generation exposure to merchant power price cycles.5
03
Chỉ số:
Retail Revenue Contribution and Margin Pass-Through
Hiện tạiDelivered 74.1% of consolidated revenue in FY2025 ($13,025M of $17,586M),.
Vì sao quan trọng
Retail customer contracts physically match wholesale generation volumes, shielding consolidated operating margins from merchant downturns.7
04
Chỉ số:
ERCOT Large-Load Interconnection Audits and Tariffs
Hiện tạiPUC and ERCOT paused Batch Zero base load reviews pending audit reviews expected over several months.
Vì sao quan trọng
Regulatory scrutiny and interconnection queue audits directly dictate the timing and commercial terms of large data center energization,.5
05
Chỉ số:
Share Repurchase Authorization Execution
Hiện tại~$1.2B authorization remaining to execute no later than year-end 2027 out of ~$3B total capital return target,.
Vì sao quan trọng
Share repurchases retire common stock (171M shares retired since Nov 2021), directly driving per-share cash flow and EPS accretion.4,5
Hedge book provides near-term cash visibility but leaves post-2027 volume exposed
Generation volumes are ~100% hedged in 2026, ~94% in 2027, and drop to ~72% in 2028.
Earnings visibility is high through 2027, but unhedged merchant price exposure expands sharply in 2028 as wholesale power curves face deflationary pressures in ERCOT.
Substantial balance-sheet leverage creates ongoing fixed debt service obligations
Vistra carries $20,508M in total debt with guided full-year net cashinterest paid of $1,125M.
Significant fixed interest obligations consume over $1.1B in operational cash flow annually, leaving equity value sensitive to credit spread widening and refinancing rates.
Exelon CorporationEXC
Giá / giá trị hợp lý
Giá trị hợp lý59,44 US$Report-date price40,73 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư60 / 100
Dominion Energy, Inc.D
Giá / giá trị hợp lý
Giá trị hợp lý64,25 US$Report-date price61,58 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư55 / 100
Biên
VST
Vistra Corp.
$47.0B
13.3x
2.4x
10.5x
43.0%
—
CEG
Constellation Energy Corporation
$91.2B
19.3x
2.9x
14.5x
15.1%
8.7%
PEG
Public Service Enterprise Group Incorporated
$33.9B
14.6x
2.7x
13.1x
11.8%
18.9%
EXC
Exelon Corporation
$42.0B
13.4x
1.7x
11.1x
9.7%
16.6%
D
Dominion Energy Inc.
$53.9B
16.1x
3.0x
13.6x
8.3%
29.2%
Rapid Battery Energy Storage Deployment
negative
Rapid grid-scale battery installations bridge solar and wind generation hours, flattening summer evening net peak wholesale prices and eroding merchant peaker scarcity rents.