TacticScaleWhat Consolidated Edison Does & How It Makes Money (ED)
Updated October 2026 · reflects Consolidated Edison's latest reported financials
New York utility delivering electricity, natural gas, and steam. It earns regulated rates for delivering electricity, gas, and steam to residential, commercial, industrial, and government customers over its grid and pipeline network.
How Consolidated Edison makes money
It earns regulated rates for delivering electricity, gas, and steam to residential, commercial, industrial, and government customers over its grid and pipeline network. It also invests in electric and gas transmission projects.
What Consolidated Edison does
Consolidated Edison, founded in 1823 and based in New York, is a regulated utility holding company whose subsidiaries deliver electricity, natural gas, and steam. Its core territory covers New York City and Westchester County, with about 3.7 million electric customers, about 1.1 million gas customers in Manhattan, the Bronx, parts of Queens, and Westchester, and about 1,490 steam customers in parts of Manhattan. Other subsidiaries supply electricity to about 0.3 million customers and gas to about 0.1 million customers in southeastern New York and northern New Jersey. The company owns a dense delivery network. It includes 552 circuit miles of transmission lines, 16 transmission substations, 63 distribution substations, 3,764 pole miles of overhead distribution lines, 2,417 miles of underground distribution lines, and 4,374 miles of gas mains. Revenue comes from regulated delivery service to residential, commercial, industrial, and government customers. The company also invests in electric and gas transmission projects.
Products & services
- Electric delivery service
- Natural gas distribution
- Steam service in Manhattan
- Electric transmission lines and substations
- Electric and gas transmission project investments
What is Consolidated Edison worth?
On an owner-earnings DCF, Consolidated Edison's most-likely value is about $30 versus a recent price near $106 (72% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$18) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $106 is above even the optimistic Bull case ($35) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ High leverage — net debt is 39.5× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
⚠ Capital-intensive — this business reinvests heavily, so free cash flow runs well below its earnings. Fair value here is built on free cash flow, which understates owner earnings for reinvestment-heavy companies — read it as conservative.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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