Using the industry peer median P/E multiple (trailing + forward), Pinnacle West Capital Corporation (PNW) has a fair value of $95.76 based on 10 comparable companies in the Regulated Electric industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Pinnacle West Capital CorporationPNW | 11,989 | 19.5x | 20.9x |
| NextEra Energy, Inc.NEE | 189,392 | 27.6x | 22.6x |
| The Southern CompanySO | 106,555 | 24.3x | 20.9x |
| Duke Energy CorporationDUK | 100,638 | 20.5x | 19.3x |
| American Electric Power Company, Inc.AEP | 69,685 | 19.3x | 20.3x |
| Dominion Energy, Inc.D | 53,597 | 17.7x | 17.0x |
| Exelon CorporationEXC | 49,400 | 17.6x | 16.9x |
| Xcel Energy Inc.XEL | 48,600 | 22.8x | 18.9x |
| Entergy CorporationETR | 46,513 | 26.3x | 23.4x |
| Consolidated Edison, Inc.ED | 40,274 | 19.8x | 18.3x |
| Public Service Enterprise Group IncorporatedPEG | 40,257 | 19.2x | 18.4x |
| Industry Median | 20.1x | 19.1x | |
| (*) Profit after tax | 617 | 573 | |
| Equity Value | 12,415 | 10,945 | |
| (/) Outstanding shares | 122 | 122 | |
| Fair Price | $102 | $90 | |
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.