ETR
Entergy Corporation
$102.80
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 64.3% above fair value
You pay
$102.80
Bear
$54.74
Fair
$62.56
Bull
$70.38
Bear
$54.74
-46.8%
$3.91 × 14x P/E
Fair
$62.56
-39.1%
$3.91 × 16x P/E
Bull
$70.38
-31.5%
$3.91 × 18x P/E
Adjust Assumptions
16.0x
3.91$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
26.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (32 analysts)
$123.91
Divergence from AlphaVal
50%
Summary
Applying a 16x P/E to adjusted EPS of $3.91, the base-case value is $62.56 per share.
Warnings
Wall Street's average price target is $123.91 (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