Published on 23 May 2024 on Simply Wall St. via Yahoo Finance
Are Investors Undervaluing Pinnacle West Capital Corporation (NYSE:PNW) By 22%?
Key Insights
Using the Dividend Discount Model, Pinnacle West Capital fair value estimate is US$99.32Pinnacle West Capital is estimated to be 22% undervalued based on current share price of US$77.77 The US$78.50 analyst price target for PNW is 21% less than our estimate of fair value
How far off is Pinnacle West Capital Corporation (NYSE:PNW) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. It may sound complicated, but actually it is quite simple!