EIX
Edison International
$55.48
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 70.0% below fair value
You pay
$55.48
Bear
$161.70
Fair
$184.80
Bull
$207.90
Bear
$161.70
+191.5%
$11.55 × 14x P/E
Fair
$184.80
+233.1%
$11.55 × 16x P/E
Bull
$207.90
+274.7%
$11.55 × 18x P/E
Adjust Assumptions
16.0x
11.55$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
4.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (37 analysts)
$59.29
Divergence from AlphaVal
212%
Summary
Applying a 16x P/E to adjusted EPS of $11.55, the base-case value is $184.80 per share. DDM cross-check: $108.76.
Warnings
Dividend-based valuation: $108.76 (below our primary estimate by 41%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $59.29 (from 37 analysts). Our estimate is 212% above 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