EVRG
Evergy, Inc.
$85.59
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 28.8% above fair value
You pay
$85.59
Bear
$58.15
Fair
$66.45
Bull
$74.76
Bear
$58.15
-32.1%
$3.66 × 14x P/E
Fair
$66.45
-22.4%
$3.66 × 16x P/E
Bull
$74.76
-12.7%
$3.66 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
23.4x
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 $90.14 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $66.45 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 $90.14 (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