Regulated Electric · NYSE
Current Price
$67.94
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Edison International with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Edison International, through its subsidiaries, generates and distributes electric power. It delivers electricity to 15 million residential, commercial, industrial, public authorities, agricultural, and other customers across Southern, Central, and Coastal California. The company also provides energy solutions to commercial and industrial users. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and substations; and distribution system consists of approximately 39,000 circuit-miles of overhead lines, approximately 31,000 circuit-miles of underground lines, and 800 substations. The company was founded in 1886 and is headquartered in Rosemead, California.
ROIC (TTM)
-39.5%
ROE (TTM)
21.5%
FCF Yield
-2.46%
Based on trailing twelve-month data, EIX shows a free cash flow per share of N/A and a ROIC of -39.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -2.46% are important context metrics when evaluating EIX's stock valuation relative to peers.
The intrinsic value of EIX depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether EIX is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $67.94. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Edison International: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Regulated Electric industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting EIX's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Edison International, this means projecting how much free cash flow the Regulated Electric will produce over the next 5-10 years, then discounting those amounts to today's dollars. EIX's ROIC of -39.5% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For EIX, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
