VST Vistra Corp.
$149.30
Stable Earnings Power 85%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 164.8% above fair value

You pay $149.30
Bear $46.14
Fair $56.39
Bull $66.64
Bear $46.14 -69.1% $2.21 × 21x P/E
Fair $56.39 -62.2% $2.21 × 26x P/E
Bull $66.64 -55.4% $2.21 × 30x P/E

Adjust Assumptions

25.5x
2.21$

Key Value Driver

Normalized P/E multiple (26x base case)

Implied Market Multiple 67.6x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (22 analysts) $217.45
Divergence from AlphaVal 74%

Summary

Applying a 26x P/E to adjusted EPS of $2.21, the base-case value is $56.39 per share. DDM cross-check: $50.02.

Warnings

Wall Street's average price target is $217.45 (from 22 analysts). Our estimate is 74% 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