TacticScaleWhat Exelon Does & How It Makes Money (EXC)
Updated October 2026 · reflects Exelon's latest reported financials
U.S. utility holding company delivering electricity and natural gas. Exelon earns regulated revenue from buying energy and selling it to retail customers, and from charging for electricity transmission and distribution and natural gas distribution, at rates approved by regulators.
How Exelon makes money
Exelon earns regulated revenue from buying energy and selling it to retail customers, and from charging for electricity transmission and distribution and natural gas distribution, at rates approved by regulators.
What Exelon does
Exelon Corporation is a utility services holding company focused on energy distribution and transmission in the United States. Its businesses buy electricity and natural gas and sell them to retail customers under regulation. They also transmit and distribute electricity and distribute natural gas. Its customers include residential, commercial, industrial, public-authority and electric-railroad users. Exelon was incorporated in 1999 and is headquartered in Chicago, Illinois. Because its revenue comes from regulated delivery and retail sales, it fits the typical profile of a regulated electric utility.
Products & services
- Electricity transmission
- Electricity distribution
- Natural gas distribution
- Regulated retail electricity sales
- Regulated retail natural gas sales
What is Exelon worth?
On an owner-earnings DCF, Exelon's most-likely value is about $3 versus a recent price near $42 (92% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$2) 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 $42 is above even the optimistic Bull case ($4) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ High leverage — net debt is 311.8× 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 →
Related companies
Xcel Energy (XEL) · FirstEnergy (FE) · The Southern (SO) · American Electric Power (AEP) · Consolidated Edison (ED)