Using the industry peer median P/E multiple (trailing + forward), Atmos Energy Corporation (ATO) has a fair value of $170.59 based on 8 comparable companies in the Regulated Gas industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Atmos Energy CorporationATO | 29,316 | 24.5x | 22.0x |
| The Southern CompanySO | 106,555 | 24.3x | 20.9x |
| DTE Energy CompanyDTE | 30,063 | 20.5x | 18.7x |
| Ameren CorporationAEE | 30,016 | 20.3x | 20.2x |
| FirstEnergy Corp.FE | 28,954 | 28.5x | 18.4x |
| PPL CorporationPPL | 28,163 | 23.4x | 19.2x |
| CenterPoint Energy, Inc.CNP | 27,672 | 26.5x | 22.2x |
| American Water Works Company, Inc.AWK | 26,908 | 24.2x | 22.6x |
| Eversource EnergyES | 25,539 | 14.9x | 14.0x |
| Industry Median | 23.8x | 19.7x | |
| (*) Profit after tax | 1,199 | 1,330 | |
| Equity Value | 28,537 | 26,248 | |
| (/) Outstanding shares | 161 | 161 | |
| Fair Price | $178 | $163 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.