I do not use dcf, which many do
I use DCF valuation metric for those companies where I have a fairly reliable way/method/history of estimating their future cash flows over 5 years.
The sectors where this seems to work the best are those companies that have long term sales/service contracts, delivery contracts for oil/NG, real estate leases so I focus on Non-MLP midstream companies; REITs w/ 10-to-15 year lease income; and/or those w/ predictable long term FCF.
Here is a list my AI came up with and I own quite a few of these AND probably s/d look into the others I have no position in:
These I own:
1) Kinder Morgan Inc (KMI)
2) Enbridge Inc (ENB)
3) Williams Companies (WMB)
4) TC Energy Corp (TRP)
5) Northern Oil and Gas (NOG)
6) Crown Castle Inc (CCI)
Do not Own
1) American Tower Corp (AMT)
2) Equinix Inc (EQIX)
3) Digital Realty Trust (DLR)
4) Nextera Energy (NEE)
I am sure there are many other companies that fit this type of valuation analysis based on long term lease/royalty and/or delivery contracts.
Nextera Energy (NEE) looks interesting but would want this lower at/below $70/share. Totally missed this at $70/share last month (9/19/2025) now +20% on a break out.
NextEra Energy Inc. is a public utility holding company engaged in the generation, transmission, distribution, and sale of electric energy. The company has both regulated and non-regulated energy-related products and services, with operations in the U.S. and Canada. NextEra Energy's primary subsidiaries are Florida Power & Light Company (FPL), Gulf Power Company and NextEra Energy Resources LLC (NEER). NextEra Energy Capital Holdings, Inc. (NEECH) is a wholly owned subsidiary of NextEra, which owns and provides funds for NEER and other operating subsidiaries apart from FPL and its subsidiaries. In 2014, NextEra Energy formed NextEra Energy Partners, LP' to own, manage and acquire contracted clean energy projects.NextEra Energy produces a large volume of electricity from wind and solar energy. The company, through its subsidiaries, is advocating higher usage of clean fuel sources to generate electricity and aiming to reduce total carbon emissions by 67% within 2025 from 2005 base. |
