PPWLM
PacifiCorp
$193.25
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 29.4% below fair value
You pay
$193.25
Bear
$239.40
Fair
$273.60
Bull
$307.80
Bear
$239.40
+23.9%
$11.40 × 21x P/E
Fair
$273.60
+41.6%
$11.40 × 24x P/E
Bull
$307.80
+59.3%
$11.40 × 27x P/E
Key Value Driver
Normalized P/E multiple (24x base case)
Implied Market Multiple
17.0x
Summary
Applying a 24x P/E to adjusted EPS of $11.40, the base-case value is $273.60 per share.
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