IDA
IDACORP, Inc.
$142.00
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 34.9% above fair value
You pay
$142.00
Bear
$92.13
Fair
$105.29
Bull
$118.45
Bear
$92.13
-35.1%
$5.90 × 14x P/E
Fair
$105.29
-25.9%
$5.90 × 16x P/E
Bull
$118.45
-16.6%
$5.90 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
24.1x
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 $148.86 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $105.29 per share.
Warnings
Wall Street's average price target is $148.86 (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