Edison International (EIX) Fair Value & PE Analysis
Regulated Electric · NYSE
Current Price
$54.56
PE Ratio (TTM)
5.6x
Intrinsic Value
$81.58
+33.1% margin of safety
What Is Edison International's Fair Value?
As of 2026-10-07, applying a 5.5x earnings multiple to Edison International's (EIX) earnings per share of $10 yields a fair value estimate of $81.58 per share, versus a market price of $54.56.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $55.69 to $112.14. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · EIX intrinsic value (DCF view)
Is Edison International (EIX) Overvalued?
At $54.56, EIX trades below its PE-based fair value estimate by a wide margin. By this model the stock looks cheap relative to its earnings power, but check whether earnings are sustainable before reading too much into it.
COMPETITIVE MOAT
↑Regulated Monopoly Service Area
EIX operates as a regulated utility, granting it exclusive rights to provide electricity within its service territories. This creates a natural monopoly, limiting direct competition for its core services.
↑High Capital Intensity & Infrastructure
The extensive and costly infrastructure required for electricity generation and distribution creates a significant barrier to entry for potential competitors. Building and maintaining this network is prohibitively expensive.
↑Essential Service & Customer Inertia
Electricity is a non-discretionary service, ensuring consistent demand. Customers face high switching costs and inconvenience, leading to strong inertia and customer retention.
INVESTMENT RISKS
↓Wildfire Liabilities & Mitigation Costs
EIX faces substantial financial risks from wildfires, including potential litigation and the cost of implementing extensive wildfire mitigation measures. These events can lead to significant financial strain and operational disruptions.
↓Extreme Weather Event Impact
The company's infrastructure is vulnerable to damage from extreme weather events, such as heatwaves, storms, and droughts. These events can lead to service disruptions, repair costs, and potential regulatory scrutiny.
↓Interest Rate Sensitivity & Debt Burden
As a capital-intensive utility, EIX relies heavily on debt financing. Rising interest rates increase borrowing costs, impacting profitability and the ability to fund necessary infrastructure upgrades.
Base case
EIX base case PE valuation
Intrinsic Value
$81.58
Margin of safety
+33.1%
Expected annual return
+8.4%
Base case assumptions: 3.3% annual earnings growth, 5.46x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the EIX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Edison International respond.
Open PE Calculator for EIXCompany Overview
Headquartered in Rosemead, California, and established in 1886, Edison International primarily operates through its subsidiaries to produce and supply electrical power. This utility company furnishes electricity to a vast client base of around 15 million, encompassing homes, businesses, industrial sites, governmental bodies, and agricultural enterprises throughout Southern, Central, and Coastal California. Beyond power delivery, Edison International also offers bespoke energy solutions tailored for its commercial and industrial clientele. Its extensive infrastructure includes a robust transmission network featuring lines that range from 55 kV to 500 kV, alongside numerous substations. The company's distribution system is equally substantial, comprising approximately 39,000 circuit-miles of overhead cabling, roughly 31,000 circuit-miles of underground lines, and 800 distribution substations.
Financial Metrics — EIX PE Stock Valuation Data
PE Ratio (TTM)
5.6x
PEG Ratio
0.13
Earnings Yield
18.32%
ROE (TTM)
22.1%
Revenue/Share (TTM)
$50.45
Dividend Yield
6.45%
Debt/Equity
2.48x
Frequently Asked Questions
What is the PE ratio of EIX?
The trailing twelve-month PE ratio of EIX reflects how much investors pay per dollar of Edison International's earnings. This metric is most useful when compared to Regulated Electric peers and the company's own historical range.
Is EIX overvalued based on PE ratio?
EIX's PE of 5.6x combined with a PEG ratio of 0.13 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Regulated Electric, a DCF analysis may be more appropriate.
How do I value EIX stock using PE ratio?
To value Edison International using PE: (1) Compare the current PE (5.6x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (0.13) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of EIX?
EIX's PEG ratio is 0.13, calculated by dividing the PE ratio (5.6x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for EIX stock valuation?
PE ratio gives a quick relative read — how EIX is priced versus Regulated Electric peers. DCF provides an absolute value based on projected free cash flows. For EIX, with a strong ROE of 22.1%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See EIX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Utilities valuationsP/E and DCF value EIX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.