PNW · Intrinsic value
Is Pinnacle West Capital Corporation (PNW) overvalued or undervalued?
Pinnacle West Capital Corporation (PNW) trades at the delayed market price of $101.65 a share. That price already implies revenue growth of 13.8% a year for 5 years. TickerWorth's fair value is $92.14 a share (priced within our range of $63.49 – $106.13). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is PNW fairly valued?
- Fair value
- $92.14
- Market price
- $101.65
- Downside to fair value
- 9.4%
- Verdict
- Priced within our range of $63.49 – $106.13
Reverse DCF: Today's price implies revenue growth of 13.8% a year for 5 years; our model assumes 5.1% a year on average over the same horizon.
What is PNW's TickerWorth Score?
Scores lower than most companies we compare it with
Compared with Utilities companies in US
Its strongest point: recent price trend has been strong. Its weakest: balance sheet looks stretched.
- Value · 58 of 100
Cheaper than 58% of Utilities companies in US
- Price vs worth · 26 of 100
- Quality · 39 of 100
More profitable than 39% of Utilities companies in US
- Financial health · 11 of 100
Financially stronger than 11% of Utilities companies in US
- Growth · 33 of 100
Growing faster than 33% of Utilities companies in US
- Momentum · 75 of 100
Outperformed 75% of Utilities companies in US over the past year
Confidence: High confidence · Scored
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PNW DCF valuation, input by input
TickerWorth's fair value for Pinnacle West Capital Corporation (PNW) is $92.14 a share, against the delayed market price of $101.65 (priced within our range of $63.49 – $106.13). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values PNW at about $61.96 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Pinnacle West Capital Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 6.3%, with a long-run terminal growth rate of 2.5%. About 84% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 13.8% annual revenue growth for PNW. Our base case instead compounds to about 5.1% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, PNW's modeled DCF value ranges from about $28.08 to $227.64 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Pinnacle West Capital Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of PNW's intrinsic value. Figures update as new filings and prices come in.
Every input behind PNW's DCF
| Input | Value |
|---|---|
| Base-year revenuePINNACLE WEST CAPITAL CORP FY2025 10-K (accession 0000764622-26-000011): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $5,339,940,000 |
| Base EBIT marginPINNACLE WEST CAPITAL CORP FY2025 10-K (accession 0000764622-26-000011): us-gaap:OperatingIncomeLoss 1,067,630,000 / revenue 5,339,939,000 = 19.99%, FY2025. | 20.0% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 6% → 6% → 5% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.42 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesPINNACLE WEST CAPITAL CORP FY2025 10-K (accession 0000764622-26-000011): WeightedAverageNumberOfDilutedSharesOutstanding = 121,971,000 shares, FY2025. | 122M |
| Market priceDelayed quote · as of 2026-10-19 17:45 UTC | $101.65 |
Change PNW's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Pinnacle West Capital Corporation do?
What does it do?
Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using nuclear, gas, oil, coal, and solar generating facilities. It operates in the Utilities - Regulated Electric industry (Utilities sector), headquartered in United States. The company employs roughly 6,610 people.
How does it make money?
The business turns $5.3B in annual revenue into profit. Out of every $100 of sales, about $21 is left as operating profit (operating margin of 21.3%), after a 43% gross margin on the products/services it sells. After all costs, taxes and interest, 11.5% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries heavy debt (2.3× equity), may struggle to cover its short-term bills (0.6× current ratio), and is currently profitable.
Who at PNW filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Blankenship Elizabeth A | VP, Controller and CAO | Open-market sale | $97,181.70 | Form 4 for Blankenship Elizabeth A (opens sec.gov in a new tab) | |
| Esparza Jose Luis Jr | — | Open-market sale | $183,618.00 | Form 4 for Esparza Jose Luis Jr (opens sec.gov in a new tab) | |
| Sims Paula J | Director | Grant / award | $166,117.05 | Form 4 for Sims Paula J (opens sec.gov in a new tab) | |
| SPENCE WILLIAM H | Director | Grant / award | $166,117.05 | Form 4 for SPENCE WILLIAM H (opens sec.gov in a new tab) | |
| Tetlow Jacob | — | Open-market sale | $646,074.00 | Form 4 for Tetlow Jacob (opens sec.gov in a new tab) | |
| Tetlow Jacob | — | Open-market sale | $4,059.41 | Form 4 for Tetlow Jacob (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is PNW's intrinsic value?
TickerWorth's blended fair value for Pinnacle West Capital Corporation (PNW) is $92.14 per share, versus a market price of $101.65 (priced within our range of $63.49 – $106.13).
Is PNW overvalued or undervalued?
Priced within our range of $63.49 – $106.13 at $101.65. We don't call PNW overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for PNW?
A WACC of 6.3% and a terminal growth rate of 2.5%.
Is Pinnacle West Capital stock undervalued?
TickerWorth's fair value for Pinnacle West Capital Corporation (PNW) is $92.14 against a market price of $101.65. Our read: Priced within our range of $63.49 – $106.13. This is a model estimate, not investment advice.
Pinnacle West Capital (PNW) DCF valuation and fair value
Our fair value for Pinnacle West Capital Corporation (PNW) is $92.14, built on a 6.3% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Pinnacle West Capital stock?
Today's price implies revenue growth of 13.8% a year for 5 years; our model assumes 5.1% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $101.65. A model estimate, not investment advice.
Pinnacle West Capital (PNW) insider trading
The most recent insider filing (SEC Form 4) for Pinnacle West Capital Corporation (PNW): Blankenship Elizabeth A, VP, Controller and CAO, open-market sale on 2026-08-10. The latest filings are listed on this page. A disclosure, not a signal to trade.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.