ETR
Entergy Corporation
$112.32
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 38.5% above fair value
You pay
$112.32
Bear
$70.94
Fair
$81.07
Bull
$91.21
Bear
$70.94
-36.8%
$3.91 × 14x P/E
Fair
$81.07
-27.8%
$3.91 × 16x P/E
Bull
$91.21
-18.8%
$3.91 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
28.7x
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 $124.27 from 32 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $81.07 per share.
Warnings
Wall Street's average price target is $124.27 (from 32 analysts). Our estimate is 50% 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