BKH
Black Hills Corporation
$74.61
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 8.2% above fair value
You pay
$74.61
Bear
$60.35
Fair
$68.97
Bull
$77.59
Bear
$60.35
-19.1%
$3.99 × 14x P/E
Fair
$68.97
-7.6%
$3.99 × 16x P/E
Bull
$77.59
+4.0%
$3.99 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
18.7x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $84.50 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $68.97 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples