PNW PE Ratio & Valuation,Is PNW Overvalued

PNW Relative Valuation

PNW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PNW is overvalued; if below, it's undervalued.

Historical Valuation

Pinnacle West Capital Corp (PNW) is now in the Fair zone, suggesting that its current forward PE ratio of 18.74 is considered Fairly compared with the five-year average of 17.55. The fair price of Pinnacle West Capital Corp (PNW) is between 82.74 to 95.85 according to relative valuation methord.

Relative Value

Fair Zone

82.74-95.85

Current Price：87.81

Fair

18.74

11.39

EV/EBITDA

Pinnacle West Capital Corp. (PNW) has a current EV/EBITDA of 11.39. The 5-year average EV/EBITDA is 11.04. The thresholds are as follows: Strongly Undervalued below 9.60, Undervalued between 9.60 and 10.32, Fairly Valued between 11.77 and 10.32, Overvalued between 11.77 and 12.49, and Strongly Overvalued above 12.49. The current Forward EV/EBITDA of 11.39 falls within the Historic Trend Line -Fairly Valued range.

22.93

EV/EBIT

Pinnacle West Capital Corp. (PNW) has a current EV/EBIT of 22.93. The 5-year average EV/EBIT is 21.51. The thresholds are as follows: Strongly Undervalued below 17.59, Undervalued between 17.59 and 19.55, Fairly Valued between 23.48 and 19.55, Overvalued between 23.48 and 25.44, and Strongly Overvalued above 25.44. The current Forward EV/EBIT of 22.93 falls within the Historic Trend Line -Fairly Valued range.

1.87

Pinnacle West Capital Corp. (PNW) has a current PS of 1.87. The 5-year average PS is 2.04. The thresholds are as follows: Strongly Undervalued below 1.56, Undervalued between 1.56 and 1.80, Fairly Valued between 2.29 and 1.80, Overvalued between 2.29 and 2.53, and Strongly Overvalued above 2.53. The current Forward PS of 1.87 falls within the Historic Trend Line -Fairly Valued range.

6.70

P/OCF

Pinnacle West Capital Corp. (PNW) has a current P/OCF of 6.70. The 5-year average P/OCF is 6.62. The thresholds are as follows: Strongly Undervalued below 5.31, Undervalued between 5.31 and 5.97, Fairly Valued between 7.27 and 5.97, Overvalued between 7.27 and 7.93, and Strongly Overvalued above 7.93. The current Forward P/OCF of 6.70 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Pinnacle West Capital Corp. (PNW) has a current P/FCF of 0.00. The 5-year average P/FCF is -21.12. The thresholds are as follows: Strongly Undervalued below -261.99, Undervalued between -261.99 and -141.55, Fairly Valued between 99.31 and -141.55, Overvalued between 99.31 and 219.74, and Strongly Overvalued above 219.74. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Pinnacle West Capital Corp (PNW) has a current Price-to-Book (P/B) ratio of 1.47. Compared to its 3-year average P/B ratio of 1.48 , the current P/B ratio is approximately -0.79% higher. Relative to its 5-year average P/B ratio of 1.46, the current P/B ratio is about 0.15% higher. Pinnacle West Capital Corp (PNW) has a Forward Free Cash Flow (FCF) yield of approximately -7.30%. Compared to its 3-year average FCF yield of -7.41%, the current FCF yield is approximately -1.53% lower. Relative to its 5-year average FCF yield of -6.80% , the current FCF yield is about 7.33% lower.

1.47

P/B

Median3y

1.48

Median5y

1.46

-7.30

FCF Yield

Median3y

-7.41

Median5y

-6.80

Competitors Valuation Multiple

The average P/S ratio for PNW's competitors is 2.85, providing a benchmark for relative valuation. Pinnacle West Capital Corp Corp (PNW) exhibits a P/S ratio of 1.87, which is -34.44% above the industry average. Given its robust revenue growth of 2.94%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PNW increased by 4.66% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.77B to 1.82B.

The secondary factor is the Margin Expansion, contributed 1.60%to the performance.

Overall, the performance of PNW in the past 1 year is driven by Revenue Growth. Which is more sustainable.

2.94%

1.77B → 1.82B

Revenue Growth

1.60%

22.57 → 22.93

Margin Expansion

0.12%

17.84 → 17.86

P/E Change

4.66%

83.90 → 87.81

Mkt Cap Growth

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Frequently Asked Questions

Is Pinnacle West Capital Corp (PNW) currently overvalued or undervalued?

What is Pinnacle West Capital Corp (PNW) fair value?

PNW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Pinnacle West Capital Corp (PNW) is between 82.74 to 95.85 according to relative valuation methord.

How does PNW's valuation metrics compare to the industry average?

What is the current P/B ratio for Pinnacle West Capital Corp (PNW) as of Dec 15 2025?

As of Dec 15 2025, Pinnacle West Capital Corp (PNW) has a P/B ratio of 1.47. This indicates that the market values PNW at 1.47 times its book value.

What is the current FCF Yield for Pinnacle West Capital Corp (PNW) as of Dec 15 2025?

As of Dec 15 2025, Pinnacle West Capital Corp (PNW) has a FCF Yield of -7.30%. This means that for every dollar of Pinnacle West Capital Corp’s market capitalization, the company generates -7.30 cents in free cash flow.

What is the current Forward P/E ratio for Pinnacle West Capital Corp (PNW) as of Dec 15 2025?

As of Dec 15 2025, Pinnacle West Capital Corp (PNW) has a Forward P/E ratio of 18.74. This means the market is willing to pay $18.74 for every dollar of Pinnacle West Capital Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Pinnacle West Capital Corp (PNW) as of Dec 15 2025?

As of Dec 15 2025, Pinnacle West Capital Corp (PNW) has a Forward P/S ratio of 1.87. This means the market is valuing PNW at $1.87 for every dollar of expected revenue over the next 12 months.

PNW Valuation