EVERSOURCE ENERGY (ES): what the price assumes

boothcheck covers EVERSOURCE ENERGY (ES) but does not put one priced-in number on it: here the defensible answer is the evidence rather than a point estimate. boothcheck publishes no house fair value, target price, or buy/sell rating. Narrative composed 2026-07-25.

Generated: 2026-08-30 · Exported: 2026-08-31 · Source: https://boothcheck.com/report/ES

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

The price sits below what even a 5%/yr operating-profit decline would warrant; the inversion reports a bound, not a solved growth path.

Solve inputs: computed at a 5.5% cost of capital with 4% terminal growth over a 5-year stage (computed at the 5.5% minimum rate; the CAPM rate 5.3% sits below it).

How unusual the bet is: within-range (limited comparison data)

Valuation X-Ray

The price is justified by relative-multiple and growth-DCF; asset-based/earnings-power land below the price.

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

Families that justify the price: Relative, Growth Families that call it expensive: Asset, Earnings

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 4.9%); the inversion above states its own rate.

Per-Model Detail (n=14)

Economic-Unit Decomposition (Sum Of The Parts)

One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.

No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.

Solvency

Bullet Takeaways

• Eversource closed the sale of Aquarion Water Company on June 30, 2026 for 2.4 billion dollars in cash, leaving a pure regulated electric and natural gas network across Connecticut, Massachusetts and New Hampshire and roughly 1.7 billion dollars of net proceeds aimed at reducing borrowings.
• The sharpest risk is the allowed return itself: on March 19, 2026 the federal regulator reset the New England transmission owners' base return on equity downward and ordered refunds with interest that the company's own 10-Q calls "material to us", and the equity carries that outcome with borrowings near 8.7 times operating profit behind it.
• Second-quarter results arrive July 30, 2026 and will carry a non-cash charge of about $0.31 per share tied to the Aquarion closing.

Bull Case

Regulated utilities are one of the few businesses where the profit is approved rather than discovered. A commission reviews the capital a utility has spent, decides how much of it was prudent, allows a return on that amount, and the company earns roughly that return for as long as it keeps investing and keeps the system running. So the analytical question is not really about demand. It is about how reliably the regulator lets the return through, and how much capital the utility can defensibly put to work. Eversource now fits that template more cleanly than it did a year ago, because it stopped being three businesses and became two.

The first quarter shows the machinery doing what it is supposed to do. The 10-Q reports that "We earned $606.8 million, or $1.61 per share, in the first quarter of 2026, compared with $550.8 million, or $1.50 per share, in the first quarter of 2025." The largest single contributor was the least glamorous piece of the company. Natural gas distribution earnings rose $76.9 million year over year, driven by base distribution rate increases effective November 1, 2025 at Yankee Gas, NSTAR Gas and EGMA, plus capital tracking mechanisms tied to continued investment in the gas system. Nobody buys a stock for a rate case. A rate case is nevertheless how this business compounds.

The recovery apparatus runs wider than periodic rate cases, and that matters more than the headline earnings number. Costs move through tariffs on a rolling basis, and the 10-K notes that these mechanisms "also include certain incentives earned, return on capital tracking mechanisms, and carrying charges that are billed in rates to customers, which do impact earnings." Translated: a large share of what the company spends comes back with a return attached, and some of it comes back without waiting for a full proceeding. That is why a utility can grow earnings while its underlying volumes barely move.

Volumes may not stay flat. The company's own description of what drives distribution investment includes "Load growth and other includes requests for new business and capacity additions on distribution lines and substation additions and expansions." New England is not the epicenter of data center construction, but interconnection requests are the mechanism by which any of that reaches a distribution utility's capital plan, and it arrives as approved spending rather than as a commodity bet.

The capital return is the part a holder can already count. Dividends totaled $3.01 per common share in 2025 against $2.86 in 2024, and on January 27, 2026 the board approved a quarterly payment of $0.7875 per share. That payout is funded by an administered earnings stream rather than a cyclical one, which is the whole argument for owning this kind of asset.

On operating profitability the company is not the laggard of its cohort. AEP earned a 24.2% operating margin and PPL 23.3% on their most recent filed figures, while ED came in at 17.2% and PCG at 19.4%. Eversource sits toward the upper end of that band, not the bottom. With Aquarion gone, roughly 1.7 billion dollars of net proceeds are pointed at reducing borrowings, which is the one lever that improves the risk profile of a levered network operator without requiring a regulator's permission.

Bear Case

Strip a regulated network down to its economics and the price is buying one thing: the durability of an approved return on a growing pile of capital. The weather, the volumes and the fuel cost all pass through to customers. Which means the fragile assumption is not demand and it is not margin. It is the allowed return, and the allowed return is not a contract. It is a number that gets re-litigated, and in March it moved the wrong way.

On March 19, 2026 the federal regulator found the New England transmission owners' base return unjust and unreasonable, reset it, and applied the new figure prospectively from October 2014. The 10-Q states that "FERC ordered refunds with interest for those historical refund periods, which are material to us, and dismissed the other three complaints." The size of the move shows up in the sequence. The complaint process began against a base return of 11.14 percent. Then "On October 16, 2014, FERC issued Opinion No. 531-A and set the base ROE at 10.57 percent and the incentive cap at 11.74 percent for the first complaint period." The 2026 order takes the base to 9.57 percent. Transmission is the highest-quality earnings stream in the company, roughly a point and a half has come off the rate it is allowed to earn, and a retroactive bill is attached.

State regulators have been reaching backwards too. A joint settlement approved in Massachusetts on December 1, 2025 produced a charge to earnings for customer credits, one of the named reasons quarterly earnings moved the way they did. In Connecticut the company has been arguing about the standard itself, telling the courts that "the correct legal standard PURA must use in determining whether costs can be recovered through customer rates is the longstanding prudence standard, which evaluates the prudence of management decision-making as of the time the utility made the decision to incur costs; PURA cannot use improper hindsight analysis to evaluate prudence." Having to litigate the principle that spending should be judged on what was knowable at the time tells you which direction the proceedings have been running.

Underneath the regulatory friction sits the customer bill. The 10-K lists customer affordability concerns alongside siting difficulties and rights-of-way problems as constraints on the company's own strategic objectives, and notes that supply constraints across New England have driven significant increases in commodity costs. Affordability is the political input that turns a routine rate filing into a contested one, and it is the reason a capital plan can be approved on paper and slowed in practice.

The equity absorbs all of this with leverage in front of it. Operating profit covers interest about 2.6 times, unremarkable for a regulated network and also a reminder that a modest compression in approved returns lands disproportionately on the residual. Meanwhile the share count has grown about 2.2% a year since March 2022. That is the funding model in plain view: the rate base expands, existing holders pay for part of the expansion through dilution, and the dividend hands some of it back out the other side.

The honest counterweight is that the market already knows. Peer-multiple methods and the growth-based cash-flow methods both land above today's price, so this is not a stock priced for perfection. That makes the bear argument narrower and harder to dismiss, not weaker: the discount exists because the approved return is genuinely in play, and over the last nine months the regulators have been resolving that question one order at a time, mostly not in the company's favour.

Valuation

Today's price puts the market at roughly 17 times company-wide operating income. That figure is low enough that the price sits below what even a sustained 5% annual decline in operating profit would warrant, which is a bound on what the market is insisting on rather than a solved expectation, and the arithmetic behind it does not carry much conviction for a business whose returns are set administratively. Read it as a statement about how little growth is being demanded, and not as a valuation.

The methods disagree in a shape that fits a regulated network carrying a lot of capital. Peer-multiple methods land above today's price, and so do the growth-based cash-flow approaches. The methods anchored on book value and profitability do not: the price sits about 39% above where the asset-value family lands. The earnings-power methods land furthest below, with the price about 48% above them. That spread is the whole picture, and the reason for it is structural rather than mysterious.

The earnings-power reading normalizes five years of operating income, taxes it, and capitalizes it forever with no growth at all. For a company whose entire model is to spend capital, get it approved into the rate base and earn a return on it, a no-growth capitalization removes the one thing that makes the business work. It describes the existing system, not the enterprise. The cash-flow method that reaches above the price gets there the opposite way, assuming the enterprise multiple the shares trade on now still applies at the end of the projection period, held flat, with the bear scenario compressing it and the bull expanding it. Neither assumption is exotic for a rate-regulated utility. Between them they bracket the real question, which is whether the approved-return model keeps working.

Against the cohort the gap is in the multiple rather than in the operations. AEP earned a 24.2% operating margin and AEE 24.0%, both from their own filed figures, and Eversource's trailing operating profitability sits alongside them rather than below. What separates these names is what investors will pay for the same administered earnings, and Connecticut has been the most contested regulatory jurisdiction in the group.

Management's stated arithmetic runs well above what the price is demanding. The company expects cumulative long-term earnings per share growth in a range of 5 to 7 percent a year through 2030, with annual growth reaching the upper half of that range by 2028.

The balance sheet explains why the discount is not free money. Net borrowings run about 8.7 times operating profit, interest is covered 2.6 times, and the share count has climbed about 2.2% a year over the last four years, which is how the capital program gets funded. The Aquarion sale changes that arithmetic at the margin rather than transforming it: about 1.7 billion dollars of net equity proceeds go toward displacing borrowings, and the water business's earnings leave with it. What the price cannot yet reflect is where the transmission return finally settles, because that proceeding is still producing orders.

Catalysts

The Aquarion sale closed on June 30, 2026 for a total purchase price of 2.4 billion dollars in cash, with adjusted net equity proceeds of roughly 1.7 billion dollars earmarked to displace borrowings. Connecticut's utility regulator had denied an earlier version of the transaction on November 19, 2025 on managerial suitability grounds before approving it on March 25, 2026, so the closing removes a long-running overhang as well as a business line. The immediate cost is visible: the company expects an after-tax non-cash charge of about $115 million, or $0.31 per share, in the second quarter.

Second-quarter results are scheduled for July 30, 2026. That print is the first to show the shape of the company without the water business, and the first full quarter after the federal transmission return order of March 19, 2026, which set a lower base return and ordered refunds with interest for the historical refund periods. The refund obligation is a one-time cash item and the lower prospective return is permanent; the quarter should begin to separate the two.

On the capital return, the board approved a quarterly common share dividend of $0.7875 in January 2026, up from $0.7525 through 2025. Management has kept a long-term earnings growth range of 5 to 7 percent a year through 2030 in place alongside the divestiture, and expects to reach the upper half of that range by 2028. Those commitments now have to be met by a smaller company carrying less debt, which is the trade the sale actually made.

Peer Cohorts (Per Segment, With Filing Citations)

Electric Distribution (reported)

• EIX (EDISON INTERNATIONAL)
• FY2025 10-K: …by reducing the electricity they purchase from SCE and whether to adopt other mechanisms that would allow SCE to recover its cost of service and the costs of many public policy programs to another pending proceeding. The final decision also provides an enhanced subsidy for lower income customers and customers who…
• FY2025 10-K: …other things, accommodate two-way flows of electricity and increase the grid's capacity to interconnect DERs. In addition, enabling California's clean energy economy goals will require sustained investments in grid modernization, renewable integration projects, energy efficiency programs, energy storage options and…
• ED (CONSOLIDATED EDISON INC)
• FY2025 10-K: …things, (i) protect customer privacy, including customer consumption data, from unauthorized disclosure; (ii) develop and implement tools to monitor operational control networks to detect unauthorized network behavior; and (iii) mandate that utilities' emergency response plans include cyberattack response plans. In…
• FY2025 10-K: …ed:ElectricitySwapsMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember srt:MinimumMember 2025-12-31 0001047862 ed:MeasurementInputCommodityForwardCapacityPriceMember ed:ElectricitySwapsMember us-gaap:FairValueInputsLevel3Member…
• PNW (PINNACLE WEST CAPITAL CORP)
• FY2025 10-K: …generally represent a single performance obligation delivered over time. We have elected to apply the practical expedient that allows us to recognize revenue based on the amount to which we have a right to invoice for services performed. We derive electric revenues primarily from sales of electricity to our regulated…
• FY2025 10-K: …and distributed energy resources continue to evolve, which may have similar impacts on the demand for electricity. Reduced demand due to these energy efficiency requirements, distributed energy requirements and other emerging technologies, unless substantially offset through ratemaking mechanisms, could have a…
• POR (PORTLAND GENERAL ELECTRIC COMPANY)
• FY2025 10-K: …may apply to all large load customers. The OPUC is expected to issue an Order in UM 2377 in the second quarter of 2026. Operating Activities In addition to providing electricity from PGE's own generation portfolio, to meet retail load requirements and balance energy supply with customer demand, manage risk, and…
• FY2025 10-K: …demand or significant accelerated growth in demand due to new data centers, including the concentration of data centers, and the ability to obtain regulatory approvals, environmental, and other permits to construct new facilities in a timely manner; • economic conditions that result in decreased demand for…
• PPL (PPL Corp)
• FY2025 10-K: …to restructure the state's electric utility industry to create retail access to a competitive market for generation of electricity. DDCP - Directors Deferred Compensation Plan. DER - Distributed Energy Resources. DRIP - PPL Amended and Restated Dividend Reinvestment and Direct Stock Purchase Plan. DSIC - Distribution…
• FY2025 10-K: …them or pursue other options. See Item 1. Business for a discussion related to LG&E's and KU's Solar Share program and 2022 and 2025 CPCN filings. Pennsylvania Regulated Segment (PPL and PPL Electric) For a description of PPL Electric's service area, see "Item 1. Business - General - Segment Information -…
• PCG (PG&E CORP)
• FY2025 10-K: …lines deliver electricity at high voltages and over long distances from power sources to transmission substations closer to customers. A strong transmission system supports reliable and affordable service, ability to meet state energy policy goals, and support for a diverse generation mix, including renewable energy.…
• FY2025 10-K: …distribution network. Emanating from each substation are primary and secondary distribution lines connected to local transformers and switching equipment that link distribution lines and provide delivery to customers. In some cases, third parties, such as municipal and other utilities, who generate or procure their…
• AEP (AMERICAN ELECTRIC POWER CO INC.)
• FY2025 10-K: …Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. Transmission networks are interconnected with extensive distribution facilities in the territories served. The public utility subsidiaries of AEP have traditionally provided electric service, consisting of generation, transmission and…
• FY2025 10-K: …of third-party sales. AEPSC acts as the agent. OTC Over-the-counter. OVEC Ohio Valley Electric Corporation, which is 43.47% owned by AEP. Parent American Electric Power Company, Inc., the equity owner of AEP subsidiaries within the AEP consolidation. PATH-WV PATH West Virginia Transmission Company, LLC, a joint…

Natural Gas Distribution (reported)

• ATO (ATMOS ENERGY CORP)
• FY2025 10-K: …load and peaking agreements, coupled with the withdrawal of gas held in storage, allows us the flexibility to adjust to changes in weather, which minimizes our need to enter into long-term firm commitments. We estimate our peak-day availability of natural gas supply to be approximately 5.4 Bcf. The peak-day demand…
• FY2025 10-K: …3.4 million residential, commercial, public-authority, and industrial customers through our six regulated distribution divisions in the service areas described below: Division Service Area Atmos Energy Colorado-Kansas Division Colorado, Kansas Atmos Energy Kentucky/Mid-States Division Kentucky, Tennessee, Virginia…
• NI (NISOURCE INC.)
• FY2025 10-K: …Center, IN Natural Gas 7,240,000 Rolling Prairie LNG Rolling Prairie, IN Liquified Natural Gas 4,000,000 Total Capacities 11,240,000 Competition. Similar to the Columbia Operations segment, NIPSCO Gas operates in an open and competitive market which allows retail customers to purchase gas directly from producers and…
• FY2025 10-K: Discussion and Analysis of Financial Condition and Results of Operations" and Note 21, "Business Segment Information," in the Notes to Consolidated Financial Statements for additional information related to each segment. Columbia Operations Columbia Operations provides natural gas to approximately 2.4 million…
• SWX (Southwest Gas Holdings, Inc.)
• FY2025 10-K: 2025 vs. 2024 Contribution to consolidated net income from natural gas distribution operations increased $38.2 million between 2025 and 2024 consistent with the Natural Gas Distribution segment except for: • $10.2 million higher Income tax expense consistent with the Natural Gas Distribution segment explanation…
• FY2025 10-K: …dekatherms in 2025, 92.7 million dekatherms in 2024, and 85.7 million dekatherms in 2023. The demand for natural gas is seasonal with greater demand in the colder winter months and decreased demand in the warmer summer months. It is the opinion of management that comparisons of earnings for interim periods do not…
• SR (Spire Inc.)
• FY2025 10-K: …from gas sales and transportation services on an accrual basis that includes estimated amounts for gas delivered but not yet billed. The accruals for unbilled revenues are reversed in the subsequent accounting period when meters are actually read and customers are billed. Spire Alabama records natural gas…
• FY2025 10-K: …and intrastate suppliers and distributes the purchased gas through its distribution facilities for sale to residential, commercial, and industrial customers and other end-users of natural gas. Spire Alabama also transports gas through its distribution system for certain large commercial and industrial customers for a…
• NJR (NEW JERSEY RESOURCES CORPORATION)
• FY2025 10-K: …in natural gas purchases as they occur. Demand Fees For the purpose of securing storage and pipeline capacity in support of their respective businesses, ES and NJNG enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high…
• FY2025 10-K: …2024-10-01 2025-09-30 0000356309 us-gaap:OperatingSegmentsMember njr:ServiceContractsMember njr:NaturalGasDistributionNJNGSegmentMember 2024-10-01 2025-09-30 0000356309 us-gaap:OperatingSegmentsMember njr:ServiceContractsMember njr:CleanEnergyVenturesCEVSegmentMember 2024-10-01 2025-09-30 0000356309…

Electric Transmission (reported)

• AEP (AMERICAN ELECTRIC POWER CO INC.)
• FY2025 10-K: …TA Transmission Agreement, effective November 2010, among APCo, I&M, KGPCo, KPCo, OPCo and WPCo with AEPSC as agent. Tax Reform On December 22, 2017, President Trump signed into law legislation referred to as the "Tax Cuts and Jobs Act" (the TCJA). The TCJA includes significant changes to the Internal Revenue Code of…
• FY2025 10-K: …accounting guidance for "Regulated Operations," and are therefore presented as such in the disaggregated revenues tables above. AEP subsidiaries within the ERCOT region collect revenues through a combination of base rates and interim Transmission Costs of Services filings that are approved by the PUCT. The AEP East…
• EIX (EDISON INTERNATIONAL)
• FY2025 10-K: …or imprudent with respect to its utility-owned generation outages and contract administration activities, could negatively impact SCE's earnings and cash flows. The ERRA review proceeding is also used as a venue to review costs in various memorandum and balancing accounts including the Grid Hardening Balancing…
• FY2025 10-K: …other things, accommodate two-way flows of electricity and increase the grid's capacity to interconnect DERs. In addition, enabling California's clean energy economy goals will require sustained investments in grid modernization, renewable integration projects, energy efficiency programs, energy storage options and…
• PPL (PPL Corp)
• FY2025 10-K: …and PPL Electric does not own or operate any generation facilities. The PPL Electric transmission business, operating under a FERC-approved PJM Open Access Transmission Tariff, is subject to competition pursuant to FERC Order 1000 from entities that are not incumbent PJM transmission owners with respect to the…
• FY2025 10-K: …the delivery. In those circumstances, revenue is only recognized for providing delivery of the commodity to the customer. Transmission Revenue PPL Electric generates transmission revenues from a FERC-approved PJM Open Access Transmission Tariff. An annual revenue requirement for PPL Electric to provide transmission…
• FE (FIRSTENERGY CORP)
• FY2025 10-K: …ASC 606 and regulated utilities are permitted to continue to recognize such revenues in accordance with existing practice but are presented separately from revenue arising from contracts with customers. Transmission infrastructure owned and operated by the Transmission Companies and certain of FirstEnergy's Electric…
• FY2025 10-K: …to Financial Statements of the Registrants for additional details. FirstEnergy's Stand-Alone Transmission segment, which consists of FE's ownership in FET and KATCo, includes transmission infrastructure owned and operated by the Transmission Companies and used to transmit electricity. The segment's revenues are…
• PCG (PG&E CORP)
• FY2025 10-K: …lines deliver electricity at high voltages and over long distances from power sources to transmission substations closer to customers. A strong transmission system supports reliable and affordable service, ability to meet state energy policy goals, and support for a diverse generation mix, including renewable energy.…
• FY2025 10-K: …on electric transmission assets is determined in the FERC TO proceedings. 18 Customer rates are determined by dividing the revenues that the Utility is authorized to collect from customers by the amount of power that the Utility is forecasted to sell. Increases in load spread the Utility's revenue requirement over a…
• AEE (AMEREN CORP)
• FY2025 10-K: …aee:AmerenIllinoisCompanyMember aee:AmerenIllinoisTransmissionMember 2023-01-01 2023-12-31 0001002910 us-gaap:IntersegmentEliminationMember aee:AmerenIllinoisCompanyMember 2023-01-01 2023-12-31 0001002910 us-gaap:OperatingSegmentsMember us-gaap:ElectricityMember aee:ResidentialMember aee:UnionElectricCompanyMember…
• FY2025 10-K: …aee:OtherMember aee:AmerenIllinoisElectricDistributionMember 2024-01-01 2024-12-31 0001002910 us-gaap:OperatingSegmentsMember us-gaap:ElectricityMember aee:OtherMember aee:AmerenIllinoisGasMember 2024-01-01 2024-12-31 0001002910 us-gaap:OperatingSegmentsMember us-gaap:ElectricityMember aee:OtherMember…

Water Distribution (reported)

• AWK (AMERICAN WATER WORKS COMPANY, INC.)
• FY2025 10-K: …strategies to improve distribution system water quality further; • using its research findings to communicate information to its customers regarding potential actions to limit occurrences of Legionella in their buildings; in this regard, the Centers for Disease Control and Prevention statistics indicate that…
• FY2025 10-K: …quality, quantity, growth needs and alternate sources of water supply as well as transmission and distribution capacity to provide water service to its customers. Water supply is seasonal in nature and weather conditions can have a pronounced effect on supply. To support the maintenance of adequate water supplies,…
• AWR (American States Water Co)
• FY2025 10-K: …revenue generated from rates charged to our customers based on the volume of water used. The rates we charge for water are regulated by the CPUC and may not be adequately adjusted to reflect changes in demand. Declining usage also negatively impacts our long-term operating revenues if we are unable to secure rate…
• FY2025 10-K: …to meet certain water use standards on a system-by-system basis. From 2008 until 2024, we implemented the CPUC-approved WRAM at GSWC, which had the effect of stabilizing revenues at the adopted level thereby reducing the potential adverse earnings impact of our customers' conservation efforts. Cash flows from…
• CWT (CALIFORNIA WATER SERVICE GROUP)
• FY2025 10-K: …in 2025, 2024, and 2023, respectively. The agreement allows us to request a rate change annually in order to recover costs. Hawaii Water provides service to approximately 6,800 water and wastewater customer connections on the islands of Kauai, Maui, Oahu, and Hawaii, including several large resorts and condominium…
• FY2025 10-K: …demand for our water. Finally, changes in prevailing weather patterns due to climate change may affect customer demand. If increased ambient temperatures affect our service areas, water used for irrigation and cooling may increase. If rainfall patterns change, our customers may change their patterns of water use…
• WTRG (Essential Utilities, Inc.)
• FY2025 10-K: …Regulated Water segment operating revenues are realized in the second and third quarters. In general, during these seasons, an extended period of dry weather increases consumption, while above-average rainfall decreases consumption. Also, an increase in the average temperature generally causes an increase in water…
• FY2025 10-K: …operations in the eight states where we provide these services. These operating segments are aggregated into one reportable segment, Regulated Water, since each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution…

Methodology Note

• Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
• Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
• Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.