Pinnacle West Valuation
| PNW Stock | USD 94.52 0.72 0.77% |
At this time, the company appears to be overvalued. Pinnacle West Capital holds a recent Real Value of $79.89 per share. The prevailing price of the company is $94.52. Our model determines the value of Pinnacle West Capital from analyzing the company fundamentals such as Return On Equity of 0.0958, operating margin of 0.32 %, and Shares Outstanding of 113.7 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Pinnacle West's valuation include:
Price Book 1.5961 | Enterprise Value 21.8 B | Enterprise Value Ebitda 10.6747 | Price Sales 2.1241 | Forward PE 20.1613 |
Overvalued
Today
Please note that Pinnacle West's price fluctuation is very steady at this time. Calculation of the real value of Pinnacle West Capital is based on 3 months time horizon. Increasing Pinnacle West's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Pinnacle stock is determined by what a typical buyer is willing to pay for full or partial control of Pinnacle West Capital. Since Pinnacle West is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Pinnacle Stock. However, Pinnacle West's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 94.52 | Real 79.89 | Target 77.55 | Hype 94.65 | Naive 94.11 |
The intrinsic value of Pinnacle West's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Pinnacle West's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Pinnacle West Capital helps investors to forecast how Pinnacle stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Pinnacle West more accurately as focusing exclusively on Pinnacle West's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Pinnacle West's intrinsic value based on its ongoing forecasts of Pinnacle West's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Pinnacle West's closest peers.
Pinnacle West Cash |
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Pinnacle Valuation Trend
Analysing the historical paterns of Pinnacle West's enterprise value and its market capitalization is a good way to estimate and gauge the value of Pinnacle West Capital over time and is usually enough for investors to make rational market timing decisions.
Pinnacle Revenue by Product
Pinnacle West Total Value Analysis
Pinnacle West Capital is at this time estimated to have company total value of 21.83 B with market capitalization of 10.67 B, debt of 10.3 B, and cash on hands of 4.83 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Pinnacle West fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
21.83 B | 10.67 B | 10.3 B | 4.83 M |
Pinnacle West Investor Information
About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.6. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Pinnacle West Capital recorded earning per share (EPS) of 5.32. The entity last dividend was issued on the 4th of November 2024. The firm had 1:1 split on the 27th of November 2006. Based on the key indicators related to Pinnacle West's liquidity, profitability, solvency, and operating efficiency, Pinnacle West Capital is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.24 | 0.1756 |
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| Total Cash From Operating Activities | 955.6 M | 1.2 B |
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| Operating Income | 679.8 M | 824.6 M |
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Pinnacle West Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Pinnacle West has an asset utilization ratio of 19.04 percent. This indicates that the Company is making $0.19 for each dollar of assets. An increasing asset utilization means that Pinnacle West Capital is more efficient with each dollar of assets it utilizes for everyday operations.Pinnacle West Ownership Allocation
The majority of Pinnacle West Capital outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Pinnacle West Capital to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Pinnacle West. Please pay attention to any change in the institutional holdings of Pinnacle West Capital as this could imply that something significant has changed or is about to change at the company.Pinnacle West Profitability Analysis
The company reported the last year's revenue of 4.7 B. Total Income to common stockholders was 518.78 M with profit before taxes, overhead, and interest of 1.71 B.Pinnacle West Past Distributions to stockholders
About Pinnacle West Valuation
Our relative valuation model uses a comparative analysis of Pinnacle West. We calculate exposure to Pinnacle West's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Pinnacle West's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.8 B | 1.8 B | |
| Pretax Profit Margin | 0.13 | 0.13 | |
| Operating Profit Margin | 0.18 | 0.24 | |
| Net Profit Margin | 0.11 | 0.07 | |
| Gross Profit Margin | 0.39 | 0.64 |
Pinnacle West Quarterly Retained Earnings |
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A single share of Pinnacle West represents a small ownership stake in the entity. As a stockholder of Pinnacle, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Pinnacle West Dividends Analysis For Valuation
Dividends Paid is likely to drop to about 233.5 M in 2024. Dividend Yield is likely to drop to 0.03 in 2024. Price Earnings To Growth Ratio is likely to climb to 4.86 in 2024, whereas Retained Earnings are likely to drop slightly above 1.8 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 386.5 M | 233.5 M | |
| Dividend Yield | 0.05 | 0.03 | |
| Dividend Payout Ratio | 0.77 | 0.57 | |
| Dividend Paid And Capex Coverage Ratio | 0.54 | 0.51 |
There are various types of dividends Pinnacle West can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Pinnacle shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Pinnacle West Capital directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Pinnacle pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Pinnacle West by the value of the dividends paid out.
Pinnacle West Growth Indicators
Investing in growth stocks can be very risky. If the company such as Pinnacle West does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 113.8 M | |
| Quarterly Earnings Growth Y O Y | -0.037 | |
| Forward Price Earnings | 20.1613 |
Pinnacle West Current Valuation Indicators
Valuation refers to the process of determining the present value of Pinnacle West Capital and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Pinnacle we look at many different elements of the entity such as Pinnacle's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Pinnacle West, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Pinnacle West's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Pinnacle West's worth.Additional Tools for Pinnacle Stock Analysis
When running Pinnacle West's price analysis, check to measure Pinnacle West's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pinnacle West is operating at the current time. Most of Pinnacle West's value examination focuses on studying past and present price action to predict the probability of Pinnacle West's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pinnacle West's price. Additionally, you may evaluate how the addition of Pinnacle West to your portfolios can decrease your overall portfolio volatility.