AlphaMadera's AlphaVal page classifies PNM Resources, Inc. as a Stable Earnings Power business and values it using P/Adj-EPS × Normalized Multiple, then compares the result to the current market price to flag PNM as undervalued, fairly valued, or overvalued.

What is PNM Resources, Inc.'s fair value?

Fair value for PNM comes from a P/Adj-EPS × Normalized Multiple model -- the approach AlphaVal selected for this company's Stable Earnings Power classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value PNM?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. PNM was classified as Stable Earnings Power and is valued using P/Adj-EPS × Normalized Multiple, built from PNM's most recent reported fundamentals.

PNM - PNM Resources, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $44.50 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 85% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Strong

Trading 56.3% above fair value

Current Price $41.77

Bear Case $23.38 44.0% downside ($23.38 - $41.77) / $41.77 = -44.0% $1.67 × 14x P/E

Fair Value $26.72 36.0% downside ($26.72 - $41.77) / $41.77 = -36.0% $1.67 × 16x P/E

Bull Case $30.06 28.0% downside ($30.06 - $41.77) / $41.77 = -28.0% $1.67 × 18x P/E

Adjust Assumptions

P/E Multiple

16.0x

Adjusted EPS

1.67$

Key Value Driver

Normalized P/E multiple (16x base case)

Terminal Value % of EV

Implied Market Multiple 25.0x

Market is pricing in (growth)

Plain-Language Summary

Applying a 16x P/E to adjusted EPS of $1.67, the base-case value is $26.72 per share. DDM cross-check: $49.49.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (20 analysts) $44.50

Analyst Range $38.00 – $51.00

Divergence from AlphaVal 40%

Warnings

⚠ The company pays out 92% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.

ℹ Dividend-based valuation: $49.49 (above our primary estimate by 85%). Large gaps may signal the dividend doesn't reflect full earning power.

ℹ Wall Street's average price target is $44.50 (from 20 analysts). Our estimate is 40% 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