PPL Valuation

PPL Corp

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36.360

+0.12(0.331%)1D

Overview
Forecast
Valuation
Earnings

PPL Relative Valuation

PPL'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, PPL is overvalued; if below, it's undervalued.

Historical Valuation

PPL Corp (PPL) is now in the Fair zone, suggesting that its current forward PE ratio of 19.63 is considered Fairly compared with the five-year average of 18.21. The fair price of PPL Corp (PPL) is between 30.88 to 38.99 according to relative valuation methord.

Relative Value

Fair Zone

30.88-38.99

Current Price：36.24

Fair

19.63

Trailing

Forward

11.23

EV/EBITDA

PPL Corp. (PPL) has a current EV/EBITDA of 11.23. The 5-year average EV/EBITDA is 11.02. The thresholds are as follows: Strongly Undervalued below 7.36, Undervalued between 7.36 and 9.19, Fairly Valued between 12.85 and 9.19, Overvalued between 12.85 and 14.68, and Strongly Overvalued above 14.68. The current Forward EV/EBITDA of 11.23 falls within the Historic Trend Line -Fairly Valued range.

17.63

EV/EBIT

PPL Corp. (PPL) has a current EV/EBIT of 17.63. The 5-year average EV/EBIT is 17.16. The thresholds are as follows: Strongly Undervalued below 11.00, Undervalued between 11.00 and 14.08, Fairly Valued between 20.25 and 14.08, Overvalued between 20.25 and 23.33, and Strongly Overvalued above 23.33. The current Forward EV/EBIT of 17.63 falls within the Historic Trend Line -Fairly Valued range.

2.99

PPL Corp. (PPL) has a current PS of 2.99. The 5-year average PS is 3.01. The thresholds are as follows: Strongly Undervalued below 2.14, Undervalued between 2.14 and 2.57, Fairly Valued between 3.44 and 2.57, Overvalued between 3.44 and 3.88, and Strongly Overvalued above 3.88. The current Forward PS of 2.99 falls within the Historic Trend Line -Fairly Valued range.

9.25

P/OCF

PPL Corp. (PPL) has a current P/OCF of 9.25. The 5-year average P/OCF is 8.06. The thresholds are as follows: Strongly Undervalued below 5.71, Undervalued between 5.71 and 6.89, Fairly Valued between 9.24 and 6.89, Overvalued between 9.24 and 10.42, and Strongly Overvalued above 10.42. The current Forward P/OCF of 9.25 falls within the Overvalued range.

11.12

P/FCF

PPL Corp. (PPL) has a current P/FCF of 11.12. The 5-year average P/FCF is 17.07. The thresholds are as follows: Strongly Undervalued below -138.45, Undervalued between -138.45 and -60.69, Fairly Valued between 94.83 and -60.69, Overvalued between 94.83 and 172.59, and Strongly Overvalued above 172.59. The current Forward P/FCF of 11.12 falls within the Historic Trend Line -Fairly Valued range.

PPL Corp (PPL) has a current Price-to-Book (P/B) ratio of 1.89. Compared to its 3-year average P/B ratio of 1.54 , the current P/B ratio is approximately 22.46% higher. Relative to its 5-year average P/B ratio of 1.56, the current P/B ratio is about 21.07% higher. PPL Corp (PPL) has a Forward Free Cash Flow (FCF) yield of approximately -3.16%. Compared to its 3-year average FCF yield of -2.57%, the current FCF yield is approximately 23.31% lower. Relative to its 5-year average FCF yield of -0.86% , the current FCF yield is about 267.37% lower.

1.89

P/B

Median3y

1.54

Median5y

1.56

-3.16

FCF Yield

Median3y

-2.57

Median5y

-0.86

Competitors Valuation Multiple

The average P/S ratio for PPL's competitors is 2.26, providing a benchmark for relative valuation. PPL Corp Corp (PPL) exhibits a P/S ratio of 2.99, which is 32.23% above the industry average. Given its robust revenue growth of 7.66%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CenterPoint Energy Inc

2.76

2.05%

24.63B

Performance Decomposition

Market capitalization of PPL increased by 15.38% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 23.24 to 27.47.

The secondary factor is the Revenue Growth, contributed 7.66%to the performance.

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

7.66%

1.88B → 2.03B

Revenue Growth

-10.50%

10.10 → 9.04

Margin Expansion

18.22%

23.24 → 27.47

P/E Change

15.38%