PPLC
PPL Corporation
$48.85
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 87.8% above fair value
You pay
$48.85
Bear
$22.75
Fair
$26.01
Bull
$29.26
Bear
$22.75
-53.4%
$1.63 × 14x P/E
Fair
$26.01
-46.8%
$1.63 × 16x P/E
Bull
$29.26
-40.1%
$1.63 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
30.1x
Summary
Applying a 16x P/E to adjusted EPS of $1.63, the base-case value is $26.01 per share.
Warnings
The company pays out 103% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
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