Exelon: Even With 5.9% Dividend Yield, Exelon Is Overvalued

We have been pleased that our reports on Exelon Corporation (EXC) have generated much interest from the investment community and we have been able to continually find new ways to analyze and evaluate our thesis on the company. We noticed that because of the weakness in the unregulated power generation market and the solid performance of regulated utilities, Morningstar Investment Research assigns 4 and 5 star ratings to the power generation utilities like Exelon and 2 and 3 star ratings to regulated utilities like Wisconsin Energy (WEC) because it believes that power generators will roar back to life soon. We noticed that the only utility that Morningstar has assigned a 5 star rating and a wide moat rating was Exelon. Travis Miller has been covering Exelon since 2007 for Morningstar. Unfortunately for Exelon's stakeholders, Morningstar's fair value estimates on Exelon's shares have been eroding since 2008. Exelon's share price has... Read more