Pinnacle West Valuation

PNW Stock  USD 93.11  0.41  0.44%   
At this time, the company appears to be overvalued. Pinnacle West Capital holds a recent Real Value of $88.84 per share. The prevailing price of the company is $93.11. Our model determines the value of Pinnacle West Capital from analyzing the company fundamentals such as Return On Equity of 0.0877, shares outstanding of 119.69 M, and Operating Margin of 0.32 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Pinnacle West's valuation include:
Price Book
1.5547
Enterprise Value
25.4 B
Enterprise Value Ebitda
12.0909
Price Sales
2.0999
Forward PE
19.7628
Overvalued
Today
93.11
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  93.11 Real  88.84 Target  95.92 Hype  93.66
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.
88.84
Real Value
102.87
Upside
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:
Earnings
Estimates
LowProjectedHigh
1.161.171.18
Details
Hype
Prediction
LowEstimatedHigh
92.7493.6694.58
Details
17 Analysts
Consensus
LowTarget PriceHigh
87.2995.92106.47
Details
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

3.28 Million

Pinnacle Revenue by Product

Pinnacle West Total Value Analysis

Pinnacle West Capital is at this time estimated to have company total value of 25.36 B with market capitalization of 11.14 B, debt of 11.05 B, and cash on hands of 3.84 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 PriceMarket CapDebt ObligationsCash
25.36 B
11.14 B
11.05 B
3.84 M

Pinnacle West Investor Information

About 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.55. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Pinnacle West Capital last dividend was issued on the 2nd of February 2026. The entity 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 may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.240.23
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities981.9 M1.9 B
Way Down
Slightly volatile
Operating Income689.2 M910.9 M
Way Down
Slightly volatile

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 19.63 percent. This indicates that the Company is making $0.2 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.
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

Pinnacle West Profitability Analysis

Based on Pinnacle West's profitability indicators, Pinnacle West's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Pinnacle West's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
192.6 M
Current Value
413.2 M
Quarterly Volatility
101 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, Pinnacle West's Operating Profit Margin is fairly stable compared to the past year. Gross Profit Margin is likely to climb to 0.61 in 2026, whereas Gross Profit is likely to drop slightly above 1.8 B in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.610.48
Significantly Up
Pretty Stable
Net Profit Margin0.07290.11
Way Down
Slightly volatile
Operating Profit Margin0.240.23
Sufficiently Up
Slightly volatile
Pretax Profit Margin0.130.1437
Moderately Down
Slightly volatile
Return On Assets0.02940.0268
Significantly Up
Slightly volatile
Return On Equity0.0980.1
Fairly Down
Very volatile
For Pinnacle West profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pinnacle West Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pinnacle West utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pinnacle West's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pinnacle West over time as well as its relative position and ranking within its peers.

Pinnacle West Earnings per Share Projection vs Actual

By analyzing Pinnacle West's earnings estimates, investors can diagnose different trends across Pinnacle West's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Pinnacle West Capital is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Pinnacle West is projected to generate 1.168675 in earnings per share on the 31st of December 2026. Pinnacle West earnings estimates show analyst consensus about projected Pinnacle West EPS (Earning Per Share). It derives the highest and the lowest estimates based on Pinnacle West's historical volatility. Many public companies, such as Pinnacle West, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Pinnacle West Ownership Allocation

Pinnacle West owns a total of 119.69 Million outstanding shares. 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. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.

Pinnacle West Profitability Analysis

The company reported the last year's revenue of 5.12 B. Total Income to common stockholders was 626.03 M with profit before taxes, overhead, and interest of 2.18 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 ReportedProjected for Next Year
Gross Profit2.5 B1.8 B
Pretax Profit Margin 0.14  0.13 
Operating Profit Margin 0.23  0.24 
Net Profit Margin 0.11  0.07 
Gross Profit Margin 0.48  0.61 

Pinnacle West Quarterly Retained Earnings

4.05 Billion

Pinnacle West's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Pinnacle West's value is low or high relative to the company's performance and growth projections. Determining the market value of Pinnacle West can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

At this time, Pinnacle West's Dividend Yield is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to climb to 1.19 in 2026, despite the fact that Dividends Paid is likely to grow to (431.2 M). . At this time, Pinnacle West's Retained Earnings are fairly stable compared to the past year. Price Earnings To Growth Ratio is likely to climb to 1.30 in 2026, whereas Retained Earnings Total Equity is likely to drop slightly above 2 B in 2026.
Last ReportedProjected for Next Year
Dividends Paid-453.9 M-431.2 M
Dividend Yield 0.05  0.05 
Dividend Payout Ratio 0.75  0.71 
Dividend Paid And Capex Coverage Ratio 0.70  1.19 
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 Outstanding116.2 M
Quarterly Earnings Growth Y O Y0.006
Forward Price Earnings19.7628

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.