A Look at Edison International’s Valuation Following Strong Q3 Results and Operational Gains

Edison International (EIX) just posted third-quarter earnings that beat expectations, along with year-over-year revenue growth. The company’s operational gains, including reducing power costs and increasing income, are helping maintain confidence among investors.

See our latest analysis for Edison International.

Recent months have brought notable moves for Edison International. After beating earnings expectations and launching preferred stock buybacks, the company’s share price has climbed 5.8% over the past month, building momentum despite a tough year-to-date stretch. Still, the past year’s total shareholder return stands at -29.0% as longer-term investors reflect on a challenging utility sector. The five-year total return remains a positive 20%.

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With shares rebounding and recent results exceeding expectations, the key question now is whether Edison International is trading at a discount to its worth or if the market is already factoring in the company’s next phase of growth.

Most Popular Narrative: 12.6% Undervalued

With Edison International’s most popular narrative fair value rising to $67.37, the current last close price of $58.89 sets up a compelling gap. The stage is set as analysts’ long-term growth projections come into focus against that discount.

Significant state and federal investment, along with policy momentum for decarbonization, will underwrite large-scale grid modernization and renewable energy integration projects. This environment is expected to provide Edison International with stable, above-inflation capital expenditure opportunities and expand its regulated rate base, supporting earnings and rate base-driven revenue growth.

Read the complete narrative.

What’s driving that higher fair value? Analysts are considering long-term upgrades, growth in core cash flows, and a distinct profit path that few utilities can match. Want the numbers that make this forecast so bold? Find out what’s fueling the confidence in the rate base and where the real surprises hide beneath the headline figures.

Result: Fair Value of $67.37 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent wildfire liabilities and ongoing regulatory uncertainty remain potential catalysts that could alter Edison International’s outlook and put pressure on future earnings growth.

Find out about the key risks to this Edison International narrative.

Build Your Own Edison International Narrative

If you have a different perspective or want to dig into the data on your own terms, it’s easy to craft your personal viewpoint in just minutes. Do it your way

A great starting point for your Edison International research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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