As of June 2, 2025, Portland General Electric Co's estimated intrinsic value ranges from $27.07 to $88.99 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $88.99 | +109.9% |
| Discounted Cash Flow (5Y) | $57.78 | +36.3% |
| Dividend Discount Model (Multi-Stage) | $64.70 | +52.6% |
| Dividend Discount Model (Stable) | $38.49 | -9.2% |
| Earnings Power Value | $27.07 | -36.2% |
Is Portland General Electric Co (POR) undervalued or overvalued?
With the current market price at $42.40, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Portland General Electric Co's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.41 | 0.56 |
| Cost of equity | 5.7% | 8.0% |
| Cost of debt | 4.0% | 6.1% |
| Tax rate | 9.8% | 12.1% |
| Debt/Equity ratio | 1.04 | 1.04 |
| After-tax WACC | 4.7% | 6.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $58 | $11,347M | 80.4% |
| 10-Year Growth | $89 | $14,765M | 66.8% |
| 5-Year EBITDA | $79 | $13,638M | 83.7% |
| 10-Year EBITDA | $114 | $17,454M | 71.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $437M |
| Discount Rate (WACC) | 6.6% - 4.7% |
| Enterprise Value | $6,577M - $9,391M |
| Net Debt | $5,020M |
| Equity Value | $1,557M - $4,371M |
| Outstanding Shares | 110M |
| Fair Value | $14 - $40 |
| Selected Fair Value | $27.07 |
| Metric | Value |
|---|---|
| Market Capitalization | $4643M |
| Enterprise Value | $9663M |
| Trailing P/E | 15.27 |
| Forward P/E | 13.53 |
| Trailing EV/EBITDA | 6.80 |
| Current Dividend Yield | 445.81% |
| Dividend Growth Rate (5Y) | 9.33% |
| Debt-to-Equity Ratio | 1.04 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $26.70 |
| Discounted Cash Flow (5Y) | 25% | $14.44 |
| Dividend Discount Model (Multi-Stage) | 20% | $12.94 |
| Dividend Discount Model (Stable) | 15% | $5.77 |
| Earnings Power Value | 10% | $2.71 |
| Weighted Average | 100% | $62.56 |
Based on our comprehensive valuation analysis, Portland General Electric Co's weighted average intrinsic value is $62.56, which is approximately 47.5% above the current market price of $42.40.
Key investment considerations:
Given these factors, we believe Portland General Electric Co is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.