ED
Consolidated Edison, Inc.
$114.25
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 21.0% above fair value
You pay
$114.25
Bear
$82.60
Fair
$94.41
Bull
$106.21
Bear
$82.60
-27.7%
$5.64 × 14x P/E
Fair
$94.41
-17.4%
$5.64 × 16x P/E
Bull
$106.21
-7.0%
$5.64 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
20.3x
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 $106.90 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $94.41 per share.
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