3 Undervalued Western Utilities
Record-breaking fires are causing the market to overestimate the companies' financial risks.
We are reaffirming our fair value estimates for Portland General Electric (POR), Edison International (EIX), and PG&E (PCG) as the utilities manage record-setting wildfires in the West. All three continue to trade well below what we think they’re worth and among the lowest valuation multiples in the sector.
Portland General’s stock fell as much as 16% on Sept. 10 after reports that downed power lines might have sparked fires near Portland. Presumably, investors fear that Portland General could face fire-related liabilities such as those that sent California utility PG&E into bankruptcy last year.
Travis Miller does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.