CNP
CenterPoint Energy, Inc.
$44.56
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 40.8% above fair value
You pay
$44.56
Bear
$27.70
Fair
$31.65
Bull
$35.61
Bear
$27.70
-37.8%
$1.60 × 14x P/E
Fair
$31.65
-29.0%
$1.60 × 16x P/E
Bull
$35.61
-20.1%
$1.60 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
27.9x
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 $45.78 from 31 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $31.65 per share.
Warnings
Dividend-based valuation: $46.90 (above our primary estimate by 83%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $45.78 (from 31 analysts). Our estimate is 44% below the consensus -- consider that gap carefully.
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