ED
Consolidated Edison, Inc.
$107.82
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 19.5% above fair value
You pay
$107.82
Bear
$78.96
Fair
$90.24
Bull
$101.52
Bear
$78.96
-26.8%
$5.64 × 14x P/E
Fair
$90.24
-16.3%
$5.64 × 16x P/E
Bull
$101.52
-5.8%
$5.64 × 18x P/E
Adjust Assumptions
16.0x
5.64$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
19.1x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (27 analysts)
$105.56
Divergence from AlphaVal
15%
Summary
Applying a 16x P/E to adjusted EPS of $5.64, the base-case value is $90.24 per share. DDM cross-check: $62.29.
Warnings
Dividend-based valuation: $62.29 (below our primary estimate by 31%). Large gaps may signal the dividend doesn't reflect full earning power.
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