TacticScaleWhat Entergy Does & How It Makes Money (ETR)
Updated October 2026 · reflects Entergy's latest reported financials
Regulated electric utility serving Arkansas, Louisiana, Mississippi, and Texas. Most of its revenue comes from selling electricity to retail utility customers in regulated service territories.
How Entergy makes money
Most of its revenue comes from selling electricity to retail utility customers in regulated service territories. It also earns money from wholesale power sales to utilities, co-ops, and power traders, and from nuclear decommissioning services.
What Entergy does
Entergy Corporation, founded in 1913 and based in New Orleans, is a regulated electric utility. It generates, transmits, distributes, and sells electricity in parts of Arkansas, Louisiana, Mississippi, and Texas, where it serves about 3.1 million customers. Its plants have about 25,000 MW of capacity and run on a mix of natural gas, nuclear, coal, hydro, and solar. Besides its core utility business, Entergy owns interests in non-nuclear plants that sell power to wholesale buyers such as utilities, cooperatives, and power traders. It also provides decommissioning services to other nuclear plant owners.
Products & services
- Retail electricity service
- Electric transmission and distribution
- Nuclear power generation
- Natural gas-fired power generation
- Wholesale power sales
- Nuclear plant decommissioning services
What is Entergy worth?
On an owner-earnings DCF, Entergy's most-likely value is about $11 versus a recent price near $103 (90% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$5) 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 $103 is above even the optimistic Bull case ($14) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ High leverage — net debt is 149.2× 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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