PPL
PPL Corporation
$36.32
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 21.0% above fair value
You pay
$36.32
Bear
$26.27
Fair
$30.03
Bull
$33.78
Bear
$26.27
-27.7%
$1.63 × 14x P/E
Fair
$30.03
-17.3%
$1.63 × 16x P/E
Bull
$33.78
-7.0%
$1.63 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
22.2x
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 $41.63 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $30.03 per share.
Warnings
Wall Street's average price target is $41.63 (from 29 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