EIX
Edison International
$79.79
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 47.4% below fair value
You pay
$79.79
Bear
$132.61
Fair
$151.56
Bull
$170.50
Bear
$132.61
+66.2%
$11.55 × 14x P/E
Fair
$151.56
+89.9%
$11.55 × 16x P/E
Bull
$170.50
+113.7%
$11.55 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
6.9x
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 $74.00 from 37 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $151.56 per share.
Warnings
Dividend-based valuation: $106.50 (below our primary estimate by 42%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $74.00 (from 37 analysts). Our estimate is 150% 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