Pinnacle West Capital Corporation (PNW) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-309.3%

-$221.40

vs $105.79 price

Levered DCF

-$121.47

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.71

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	17.22×	15.84×	16.25×	17.81×	12.88×	16.35×	18.77×	18.68×
P/B	1.51×	1.43×	1.32×	1.42×	1.35×	1.6×	1.86×	1.83×
P/S	1.99×	1.88×	1.74×	1.99×	2.1×	2.51×	2.91×	2.59×
EV / EBITDA	13.36×	10×	10.36×	10.6×	9.51×	10.15×	11.18×	9.63×
Gross margin	41.6%	41.7%	39.3%	39.5%	44.6%	45.6%	42.8%	42.8%
Operating margin	20.0%	19.7%	17.6%	16.9%	21.2%	22.0%	19.4%	21.0%
Net margin	11.5%	11.9%	10.7%	11.2%	16.3%	15.3%	15.5%	13.8%
Current ratio	0.49×	0.59×	0.67×	0.99×	0.88×	0.88×	0.5×	0.56×
Debt / equity	2.53×	1.64×	1.67×	1.47×	1.39×	1.23×	1.07×	1×
Interest coverage	2.53×	2.68×	2.49×	2.86×	3.45×	3.44×	3.1×	3.54×
Dividend yield	4.0%	4.1%	4.7%	4.4%	4.6%	3.9%	3.3%	3.2%
Payout ratio	68.6%	64.8%	77.1%	78.3%	59.7%	63.7%	61.2%	60.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.7%	9.0%	8.1%	8.0%	10.5%	9.8%	9.9%	9.8%
Return on invested capital	3.0%	3.5%	3.1%	3.0%	3.3%	3.7%	3.9%	3.7%
Return on assets	1.9%	2.3%	2.0%	2.1%	2.8%	2.7%	2.9%	2.9%
Free cash flow yield	-7.7%	-6.6%	-7.8%	-5.4%	-7.7%	-4.0%	-2.3%	1.0%
Earnings yield	5.8%	6.3%	6.2%	5.6%	7.8%	6.1%	5.3%	5.3%
Enterprise value	$28.5B	$20.7B	$18.4B	$17.5B	$16.1B	$15.9B	$15.9B	$14.8B
Net debt / EBITDA	8.38×	5.33×	5.78×	5.38×	4.81×	4.39×	4.08×	3.4×
Cash conversion cycle (days)	37	50	58	54	44	47	43	43