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Pinnacle West Capital Corporation

PNW Utilities Utilities Regulated Electric

Pinnacle West Capital Corporation’s revenue for fiscal 2025 (year ended December 2025) was $5.3 billion, up 4.20% from fiscal 2024.

Revenue
+8.35%
EPS
+4.27%
Free cash flow
−24.9%
Total debt
+9.05%

Quarter to September 2026, against a year earlier

102.60 1.23 −1.18%
Market cap
$12.6B
P/E
19.0×
Fwd P/E
22.0×
Dividend yield
3.52%
F-score
3/9
Altman Z
0.69
Beneish M
−2.46
Dividend safety
40/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Pinnacle West Capital Corporation (PNW) valuation and DCF model

What the price implies · reverse DCF

At $102.60 the price implies revenue of $32.54 billion by year ten, growing 19.0% a year, at a 10% free-cash-flow margin then.

The headline discounts the last twelve months’ free cash flow after share-based pay at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
19.0% a year for ten years
$102.60
today’s price

Both are growth in revenue, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Pinnacle West Capital Corporation’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Revenue and margin
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in revenue. It usually slows as the company matures.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

Diluted shares outstanding. Net debt, under Advanced inputs, is taken off before dividing.

Advanced inputs
Free cash flow Revenue and margin
negative is net cash
new shares the cash flow does not pay for

Against Pinnacle West Capital Corporation’s own cost of capital: risk-free 4.3% + beta 0.47 × equity premium 4.5% = 6.4% cost of equity; weighted, 6.4%.

Use 6.4%
Equity value $(5.96b) ▼ below market cap $12.69b
Base case value per share $(48.16) equity value ÷ 123.65m shares
Current price $102.60 market price per share
Below today’s price 146.9% downside at the base case’s assumptions

How we got there$120.94m 10 years of cash to equity+$5.34b terminal value−$11.42b net debt=$(5.96b) equity value÷123.65m shares=$(48.16) per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Utilities Regulated Electric).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 18.98× 17.22× 17.20× 10% above 19.45× 2% below
P/FCF — 75.41× 75.41× — 45.34× —
P/B 1.67× 1.45× 1.56× 7% above 1.82× 8% below
EV/EBITDA 8.64× 8.45× 9.31× 7% below 12.40× 30% below
EV/Sales 4.21× 3.88× 4.03× 4% above 4.95× 15% below
P/E P/B EV/EBITDA EV/Sales
12.89×14.97×17.04×19.12×10Y avg 17.20×2017201820192020202120222023202420252026

PNW trades at 18.98× P/E, against a 10-year average of 17.20× (range 12.88×–19.20×). That is dearer than 89% of the last 9 year-end readings; re-rating to the average implies $92.96 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.