IDA
IDACORP, Inc.
$145.31
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 37.9% above fair value
You pay
$145.31
Bear
$92.18
Fair
$105.35
Bull
$118.52
Bear
$92.18
-36.6%
$5.90 × 14x P/E
Fair
$105.35
-27.5%
$5.90 × 16x P/E
Bull
$118.52
-18.4%
$5.90 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
24.6x
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 $149.17 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $105.35 per share.
Warnings
Wall Street's average price target is $149.17 (from 13 analysts). Our estimate is 37% 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