Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
39.2% below
+64.4% to fair value
ACCE score
58
out of 100
Analysts
18% buy
17 covering
P/E
5.9x
forward 8.8x
1-year return
+0.1%
Dividend yield
6.06%
Edison International Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Edison International is the parent of Southern California Edison, a regulated electric utility serving roughly 15 million people across central, coastal and southern California, with earnings driven by rate-base investment in transmission, distribution and grid hardening. Its structural edge is the regulated return on that asset base, which is why a 19.7% ROE and a 26.9% operating margin look unusual for a utility at this size. The near-term story hinges on wildfire liability and how the state's wildfire fund and rate recovery mechanisms absorb future claims, so the stock's discount is largely a bet on regulatory outcomes rather than on operations. At a trailing P/E of 5.7 and a forward P/E of 8.6, the market is pricing in a meaningful probability of adverse wildfire or regulatory events, and revenue has fallen 4.1%, which needs explaining before any valuation call is made. The score of 58/100 and index placement in ACCE Fair Value Leaders suggest the value case is real enough to justify a closer look at the wildfire fund exposure and the rate case calendar.