EVRG Evergy, Inc.
$83.94
Stable Earnings Power 85%
P/Adj-EPS × Normalized Multiple
Moderate · Conviction

Overvalued

Trading 26.6% above fair value

You pay $83.94
Bear $57.99
Fair $66.28
Bull $74.56
Bear $57.99 -30.9% $3.66 × 14x P/E
Fair $66.28 -21.0% $3.66 × 16x P/E
Bull $74.56 -11.2% $3.66 × 18x P/E

Key Value Driver

Normalized P/E multiple (16x base case)

Implied Market Multiple 22.9x

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 $89.43 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $66.28 per share.

Warnings

Dividend-based valuation: $73.56 (above our primary estimate by 26%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $89.43 (from 18 analysts). Our estimate is 35% 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