Using the industry peer median P/E multiple (trailing + forward), Vistra Corp. (VST) has a fair value of $108.77 based on 9 comparable companies in the Independent Power Producers industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Vistra Corp.VST | 51,086 | 68.0x | 17.5x |
| Duke Energy CorporationDUK | 100,638 | 20.5x | 19.3x |
| American Electric Power Company, Inc.AEP | 69,685 | 19.3x | 20.3x |
| SempraSRE | 62,425 | 34.7x | 18.7x |
| 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 |
| Public Service Enterprise Group IncorporatedPEG | 40,257 | 19.2x | 18.4x |
| NRG Energy, Inc.NRG | 31,278 | 36.4x | 15.9x |
| Industry Median | 20.5x | 18.7x | |
| (*) Profit after tax | 944 | 2,921 | |
| Equity Value | 19,360 | 54,559 | |
| (/) Outstanding shares | 340 | 340 | |
| Fair Price | $57 | $161 | |
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.