NSTAR ELECTRIC CO earns about 8% on invested capital, below its ~9% cost of capital, with a roughly flat share count — no moat visible in the numbers. The estimate methods put fair value between $24.9M and $31.4M a share. Whether it’s worth owning at today’s price is the last question — and yours to answer, below.
| Figure | FY 2009 | FY 2010 | FY 2011 |
|---|---|---|---|
| Revenue | — | — | — |
| Net income | $240.7M1 | $248.6M1 | $252.5M1 |
| Operating cash flow | $523.5M2 | $556M2 | $721.2M2 |
| Capital expenditure | $319.5M3 | $308.6M3 | $381.2M3 |
| Free cash flow (derived) | $204M2,3 | $247.4M2,3 | $339.9M2,3 |
| Total debt | — | $1.97B4,5 | $1.38B4,5 |
| Cash & equivalents | $7.46M6 | $8.96M6 | $9.37M6 |
| Diluted shares | — | 100 | 100 |
Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom). A derived or summed figure cites every filing line it was built from.
10 shares is a claim on $223.2M of net worth that earned you $25.2M and generated $34M of cash last year, against $138.5M of debt.
It earned about 8% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.
seeing a moat in the numbers →Share count is roughly flat over 3 years — little dilution, little buyback. Total debt has fallen 30% — deleveraging.
reading capital allocation →Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.
The 3 estimate methods that apply put fair value between $24.9M and $31.4M a share. They rest on different assumptions, so where they diverge is the story.
assumptions (10)
- Risk-free rate (10Y Treasury)5.00%
- Equity risk premium5.00%
- Beta (β)1.00
- Equity share of capital85.0%
- Debt spread over risk-free1.50%
- Tax rate21.0%
- Terminal growth2.50%
- Projection period10 years
- FCF growth5.00%
- Starting free cash flow$247.4M
assumptions (10)
- Risk-free rate (10Y Treasury)5.00%
- Equity risk premium5.00%
- Beta (β)1.00
- Equity share of capital85.0%
- Debt spread over risk-free1.50%
- Tax rate21.0%
- Terminal growth2.50%
- Projection period5 years
- FCF growth5.00%
- Starting free cash flow$247.4M
assumptions (8)
- Risk-free rate (10Y Treasury)5.00%
- Equity risk premium5.00%
- Beta (β)1.00
- Equity share of capital85.0%
- Debt spread over risk-free1.50%
- Tax rate21.0%
- Normalized earnings$248.6M
- Growth assumed0.0%
Different models answer different questions — which to trust when →
| Bear | 0.0% | $19.8M |
| Base | 5.0% | $27.9M |
| Bull | 10.0% | $37.6M |
Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.
Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.
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Connect the MeritValue MCP server to Claude or another MCP client, ask about NSTAR ELECTRIC CO, and get these exact figures with their filing receipts — not an improvised DCF.
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See pricing →Follow NSARO and keep your own price beside the value. The same engine, with the same receipts.
MeritValue on the App Store →- 10-K filed 2012-02-07 · periods ending 2009-12-31, 2010-12-31, 2011-12-31 · accession 0001193125-12-043962 (NetIncomeLoss)
- 10-K filed 2012-02-07 · periods ending 2009-12-31, 2010-12-31, 2011-12-31 · accession 0001193125-12-043962 (NetCashProvidedByUsedInOperatingActivities)
- 10-K filed 2012-02-07 · periods ending 2009-12-31, 2010-12-31, 2011-12-31 · accession 0001193125-12-043962 (PaymentsToAcquirePropertyPlantAndEquipment)
- 10-K filed 2012-02-07 · periods ending 2010-12-31, 2011-12-31 · accession 0001193125-12-043962 (LongTermDebtNoncurrent)
- 10-K filed 2012-02-07 · periods ending 2010-12-31, 2011-12-31 · accession 0001193125-12-043962 (ShortTermBorrowings)
- 10-K filed 2012-02-07 · periods ending 2009-12-31, 2010-12-31, 2011-12-31 · accession 0001193125-12-043962 (CashAndCashEquivalentsAtCarryingValue)