PNW Valuation

Pinnacle West Capital Corp

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92.620

-1.16(-1.237%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PE ratio of 20.75 is considered Overvalued compared with the five-year average of 17.33. The fair price of Pinnacle West Capital Corp (PNW) is between 73.51 to 86.03 according to relative valuation methord. Compared to the current price of 92.62 USD , Pinnacle West Capital Corp is Overvalued By 7.66%.

Relative Value

Fair Zone

73.51-86.03

Current Price：92.62

7.66%

Overvalued

20.75

Trailing

Forward

11.06

EV/EBITDA

Pinnacle West Capital Corp. (PNW) has a current EV/EBITDA of 11.06. The 5-year average EV/EBITDA is 10.96. The thresholds are as follows: Strongly Undervalued below 9.50, Undervalued between 9.50 and 10.23, Fairly Valued between 11.69 and 10.23, Overvalued between 11.69 and 12.42, and Strongly Overvalued above 12.42. The current Forward EV/EBITDA of 11.06 falls within the Historic Trend Line -Fairly Valued range.

20.88

EV/EBIT

Pinnacle West Capital Corp. (PNW) has a current EV/EBIT of 20.88. The 5-year average EV/EBIT is 21.17. The thresholds are as follows: Strongly Undervalued below 16.93, Undervalued between 16.93 and 19.05, Fairly Valued between 23.29 and 19.05, Overvalued between 23.29 and 25.41, and Strongly Overvalued above 25.41. The current Forward EV/EBIT of 20.88 falls within the Historic Trend Line -Fairly Valued range.

2.04

Pinnacle West Capital Corp. (PNW) has a current PS of 2.04. The 5-year average PS is 2.07. The thresholds are as follows: Strongly Undervalued below 1.56, Undervalued between 1.56 and 1.82, Fairly Valued between 2.33 and 1.82, Overvalued between 2.33 and 2.59, and Strongly Overvalued above 2.59. The current Forward PS of 2.04 falls within the Historic Trend Line -Fairly Valued range.

7.40

P/OCF

Pinnacle West Capital Corp. (PNW) has a current P/OCF of 7.40. The 5-year average P/OCF is 6.61. The thresholds are as follows: Strongly Undervalued below 5.28, Undervalued between 5.28 and 5.94, Fairly Valued between 7.28 and 5.94, Overvalued between 7.28 and 7.94, and Strongly Overvalued above 7.94. The current Forward P/OCF of 7.40 falls within the Overvalued 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 -3.88. The thresholds are as follows: Strongly Undervalued below -291.86, Undervalued between -291.86 and -147.87, Fairly Valued between 140.11 and -147.87, Overvalued between 140.11 and 284.10, and Strongly Overvalued above 284.10. 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 1.67. Compared to its 3-year average P/B ratio of 1.45 , the current P/B ratio is approximately 14.51% higher. Relative to its 5-year average P/B ratio of 1.47, the current P/B ratio is about 13.56% higher. Pinnacle West Capital Corp (PNW) has a Forward Free Cash Flow (FCF) yield of approximately -7.59%. Compared to its 3-year average FCF yield of -7.29%, the current FCF yield is approximately 4.24% lower. Relative to its 5-year average FCF yield of -6.58% , the current FCF yield is about 15.43% lower.

1.67

P/B

Median3y

1.45

Median5y

1.47

-7.59

FCF Yield

Median3y

-7.29

Median5y

-6.58

Competitors Valuation Multiple

The average P/S ratio for PNW's competitors is 2.20, providing a benchmark for relative valuation. Pinnacle West Capital Corp Corp (PNW) exhibits a P/S ratio of 2.04, which is -7.24% above the industry average. Given its robust revenue growth of 3.80%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PNW.N

Pinnacle West Capital Corp

Algonquin Power & Utilities Corp

Brookfield Renewable Corp

1.91

-3.74%

6.09B

Performance Decomposition

Market capitalization of PNW increased by 5.83% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.57 to 19.48.

The secondary factor is the Revenue Growth, contributed 3.80%to the performance.

Overall, the performance of PNW in the past 1 year is driven by P/E Change. Which is more unsustainable.

3.80%

1.31B → 1.36B

Revenue Growth

-8.87%

15.90 → 14.49

Margin Expansion

10.90%

17.57 → 19.48

P/E Change

5.83%