Constellation Energy Lags Sector Despite 380-MW Data Center Deal, Trades at 14.2x EV/EBITDA
Constellation Energy shares lagged the S&P Utilities Index over the past month despite securing a 380-MW, 15-year data center power purchase agreement. The stock trades at a forward EV/EBITDA multiple of 14.2x versus a peer average of 11.5x, raising valuation concerns.
1. Month-long Underperformance
Over the past month, Constellation Energy's shares underperformed the S&P Utilities Index, marking its first relative decline since late 2025 amid mixed investor sentiment on valuation levels.
2. 380-MW Data Center Deal
The company signed a 15-year power purchase agreement to supply 380 MW of nuclear-generated, carbon-free electricity to a major data center customer, expanding its contracted carbon-free portfolio.
3. Premium Valuation Profile
Constellation Energy trades at a forward EV/EBITDA multiple of 14.2x compared with the 11.5x average for large-cap utilities, reflecting market confidence in its carbon-free growth but potentially limiting further stock gains.
4. Nuclear-Powered Growth Strategy
The firm continues to advance its all-nuclear, carbon-free generation platform through plant uprates and project development, underpinning its long-term earnings growth outlook.