PNWNEUTRAL

EV/EBITDA

13.3x

Higher than 43% of Utilities sector peers

Updated 124h ago

Sector Performance

43th percentile

PNW

13.3x

Sector Median

13.3x

Sector Avg

13.9x

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Deep Analysis

Pinnacle West's current EV/EBITDA of 13.2x means that the company's enterprise value — its total market value including debt — is 13.2 times its earnings before interest, taxes, depreciation, and amortization, a common measure of operating cash flow.

This ratio sits exactly at the Utilities sector median of 13.2x, placing the stock at the 50th percentile among its peers, indicating a valuation in line with the typical utility company. The metric has been stable over the last eight quarters, with a quarter-over-quarter change of -0.5% and no year-over-year change reported. A stable EV/EBITDA at the sector median suggests limited valuation-driven risk or opportunity; the stock is neither cheap nor expensive relative to its industry. This combination of an average level and a flat trend supports the overall NEUTRAL verdict, as the valuation provides no clear signal for outperformance or underperformance.

Frequently Asked Questions

What does the EV/EBITDA tell investors about PNW?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does PNW's EV/EBITDA compare to its sector?

PNW's EV/EBITDA of 13.3x compares to a Utilities sector median of 13.3x, placing it in the 43th percentile.

Who are PNW's closest peers by EV/EBITDA?

The closest Utilities peers by EV/EBITDA include: PEG (13.3x), AES (13.1x), NEP (13.6x), AEE (12.7x), AEP (12.5x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.