ORMAT TECHNOLOGIES, INC. (ORA): what the price assumes
In the published model solve dated 2026-Q2, anchored at $97.95, ORMAT TECHNOLOGIES, INC. (ORA) is priced for +19.6% growth. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-06-27.
Generated: 2026-08-10 · Exported: 2026-08-12 · Source: https://boothcheck.com/report/ORA
Headline
| Field | Value |
|---|---|
| Ticker | ORA |
| Company | ORMAT TECHNOLOGIES, INC. |
| Current price | $97.95/sh |
| Composition | Electricity 80% / Product 16% / Energy Storage 4% |
What The Price Assumes (Inversion)
The assumption today's price embeds, recovered by inverting the valuation.
| Field | Value |
|---|---|
| Inversion basis | whole-company |
| Operating margin (value-band context) | 10.0% |
| Operating margin today | 17.1% |
| Margin compression (value-band) | -7.1pp |
| Implied growth | 19.6% |
| Multiple paid | 39x operating income |
The operating-margin figure is value-band context at year 12: derived from the framework's value band, a separate calculation — not part of the priced-in solve.
Solve inputs: computed at a 7.2% cost of capital with 4% terminal growth over a 5-year stage; each 1pp of cost of capital moves the implied operating-profit growth ~9.9pp.
Reconcile: at the x-ray's 9.3% required return this reads ~8 years; the models below use their own rates.
How unusual the bet is: elevated
| Reference | Value |
|---|---|
| vs own history | +0.68σ |
| cohort percentile (of 72 peers) | 94 |
| sustained it ~5 years at this level | 40% |
| implied end-window share | 0% |
Valuation X-Ray
Asset, earnings-power and peer-multiple models all land far below the price; ONLY the growth-DCF reaches it. The bet is durable compounding the static frames structurally cannot price (a moat/durability premium).
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.
| Family | Median price/FV | Models | Reads |
|---|---|---|---|
| Asset | 6.44x | 5 | expensive |
| Earnings | 4.38x | 3 | expensive |
| Relative | 5.83x | 2 | expensive |
| Growth | 1.10x | 3 | expensive |
Families that justify the price: Growth Families that call it expensive: Asset, Earnings, Relative
The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 8.5%); the inversion above states its own rate.
Per-Model Detail (n=13)
| Model | Family | FV | Price/FV | Applicable | Methodology |
|---|---|---|---|---|---|
| DCF Perpetual Growth | Growth | $14.42 | 6.79x | yes | FCF base $0.0B, growth 25% (input: historical growth), terminal g 4.0%, WACC 8.5%, 7yr projection |
| DCF Exit Multiple | Growth | $88.79 | 1.10x | yes | Exit EV/EBITDA: 9.8x / 12.8x / 15.8x (bear / base = today's held flat / bull), 7yr |
| Relative Valuation | Relative | — | — | no | P/E 28.27x (blended: static sector reference 20x + trailing (TTM) 48x), scenarios: 22.6x / 28.3x / 33.9x (bear / base = reference held flat / bull), EV/EBITDA 13x |
| Simple DDM | Growth | — | — | no | — |
| Two-Stage DDM | Growth | — | — | no | — |
| Simple Excess Return | Asset | $22.26 | 4.40x | yes | BV/sh $41.48, ROE (TTM) 5.0%, ke 9.3% |
| Two-Stage Excess Return | Asset | $15.21 | 6.44x | yes | 5yr excess ROE then converge to ke=9.3% |
| Discounted Future Market Cap | Growth | $120.73 | 0.81x | yes | Rev $1.2B, growth 30% (input: historical growth; tapered), Terminal P/S: 4.2x / 5.2x / 6.3x (bear / base = today's held flat / bull, cap 12x) |
| Peter Lynch Fair Value | Relative | $24.84 | 3.94x | yes | EPS $2.07, growth 4% (input: historical EPS growth), PEG=11.64 (Overvalued) |
| Margin Trajectory | Growth | — | — | no | — |
| Earnings Power Value | Earnings | $18.13 | 5.40x | yes | Normalized EBIT (5y avg op income, one-time charges added back) $0.17B × (1−21%) / WACC 8.5% → EPV (no growth) |
| Residual Income | Asset | $14.35 | 6.83x | yes | BV $41.48 + 5yr PV of (ROE (TTM) 5.0% − Kₑ 9.3%) × BV; BV grows 3.2%/yr |
| Graham Number | Asset | $43.96 | 2.23x | yes | √(22.5 × EPS $2.07 × BVPS $41.48) — Graham's conservative floor |
| EV/EBITDA Relative | Relative | — | — | no | EBITDA $0.50B × sector EV/EBITDA 13.0x |
| FCF Yield | Earnings | — | — | no | — |
| SBC-Adj FCF Yield | Earnings | — | — | no | — |
| Ben Graham Formula | Earnings | $28.93 | 3.39x | yes | EPS $2.07 × (8.5 + 2×4.1%) × (4.4 / 5.3%) |
| ROIC-Justified P/B | Asset | $10.79 | 9.08x | yes | BV $41.48 × (ROIC 2.2% / WACC 8.5%) |
| P/Sales Sector | Relative | — | — | no | Revenue $1.16B × sector P/S 2.5x |
| PEG Fair Value | Relative | $12.69 | 7.72x | yes | EPS $2.07 × (PEG 1.5 × growth 4.1% (input: historical EPS growth)) → PE 6.1x |
| Earnings Yield | Earnings | $22.38 | 4.38x | yes | EPS $2.07 / required return 9.3% (Rf 4.3% + ERP 5.0%) |
| Funds From Operations Multiple | Relative | — | — | no | — |
| Clinical Phase NPV | Growth | — | — | no | — |
| Merton | Asset | — | — | no | — |
| V5 Mechanical | — | — | — | no | — |
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.
| Unit | Role | Valuation basis | Revenue | Reported profit | Value evidence | Status |
|---|---|---|---|---|---|---|
| Electricity | operating | enterprise | $702.3m | $161.9m operating-income | withheld | unresolved no unit value |
| Product | operating | enterprise | $139.7m | $10.3m operating-income | withheld | unresolved no unit value |
| Energy Storage | operating | enterprise | $37.7m | $242k operating-income | withheld | unresolved no unit value |
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
| Field | Value |
|---|---|
| Net debt | $2.1b |
| Net debt / NOPAT (after-tax) | 13.45x |
| Net debt / operating income (pre-tax) | 10.63x |
| Interest coverage | 1.3x |
| Share count CAGR (dilution) | 2.4% |
| Burning cash | no |
Bullet Takeaways
Ormat is a capital-heavy, contracted geothermal independent power producer, and reading it as such is the key. Its electricity segment, about 80% of revenue, sells baseload power under long-term agreements, the steady core, while product and energy storage add growth. At $127.73 only the growth-DCF reaches the price; the static frames call it richly valued.
The quarter was a record. Q1 2026 revenue rose 76% to $403.9 million, adjusted EPS of $1.30 beat by 41%, energy storage revenue grew 153%, and the company signed power-purchase agreements with Google and Switch tied to data-center demand.
The structural caution is the balance sheet. Net debt is roughly $2.1 billion, about 10x trailing operating income, and interest coverage is only 1.3x. For an asset that needs continuous capital, that leverage makes interest rates and renewable-incentive policy the variables with the most leverage on the equity.
Bull Case
Frame Ormat by its stage and structure, because the multiple looks very different once you do. This is a mature, vertically integrated geothermal independent power producer. Its electricity segment, roughly 80% of revenue, sells baseload renewable power under long-term contracts, which the 10-K describes alongside its product business of "construction and installation, and operating services" and its energy-storage business selling "capacity, energy and/or ancillary services" (FY2025 10-K, accession 0001296445-26-000006). That contracted electricity base is utility-like: long-lived geothermal plants producing around the clock, with revenue visibility measured in years. The right way to read the numbers is as a regulated-style cash annuity with growth options bolted on.
The growth options are now live and large. Q1 2026 delivered record revenue of $403.9 million, up 76% year over year, and adjusted EPS of $1.30 that beat estimates by 41%. Energy storage revenue grew 153%, and the product segment executed major projects. Most important for the durability premium, Ormat signed power-purchase agreements with hyperscalers Google and Switch, positioning it for the surge in data-center electricity demand and grid modernization. A renewable baseload producer with hyperscaler contracts is exactly the kind of asset the AI-power buildout needs, and Ormat is one of the few pure-play geothermal names that can supply it.
The longer-term optionality is real innovation, not vapor. Ormat is advancing Enhanced Geothermal Systems pilots with SLB and Sage Geosystems, targeting initial production by 2027, which could expand the geography where geothermal is economic. The valuation reflects a moat-and-durability bet: only the growth-DCF reaches the price, and the implied duration is a moderate 5.7 years rather than the multi-decade assumptions in many richly valued names. For an investor who sees Ormat as a contracted renewable producer riding a data-center demand wave with a credible technology runway, the premium is a bet on the contracted base compounding, which the recent results and the hyperscaler agreements support.
Bear Case
The variable with the most leverage on Ormat is not demand; it is the balance sheet and the rate environment around it. Ormat carries net debt of roughly $2.1 billion, about 10 times trailing operating income, and interest coverage of only 1.3x. That is thin. The 10-K is explicit about what such leverage does: it can "limit our flexibility to plan for, or react to, changes in our business and industry, place us at a competitive disadvantage compared to our less leveraged competitors and increase our vulnerability" to adverse conditions (FY2025 10-K, accession 0001296445-26-000006). A geothermal IPP must keep spending heavily to build and maintain plants, so it refinances and adds debt continuously. In a higher-for-longer rate environment, the interest bill on that debt rises and consumes the modest coverage cushion, leaving little for equity holders. With coverage at 1.3x, even a moderate increase in financing cost or a dip in operating income is material.
The second external lever is policy. Renewable-energy economics lean on government incentives, and Ormat's filing warns that "the reduction, elimination or inability to monetize government incentives could adversely affect our business, financial condition, results of operations, and cash flows" (same 10-K). Geothermal also depends on a patchwork of state-level treatment, such as property-tax exemptions and grants, that can change with the political winds. A rollback of renewable tax credits or a shift in state policy would hit project returns directly, and the price does not appear to discount a hostile policy turn.
The valuation leaves little room for either risk. The price sits above the high end of the supported range, and only the growth-DCF method reaches it; the asset, earnings-power and peer-multiple frames all read richly valued, landing far below. The trailing operating margin of about 17% is healthy for a utility-like business, but the price requires sustained growth that the static methods do not credit, and the rarity check is elevated with the fade assumption tripped. The record quarter was boosted by a 153% jump in lumpier energy-storage and product revenue, not only by the steady electricity base. If rates stay high against the heavy debt, if incentives are cut, or if the project and storage revenue proves uneven, the equity, which sits on top of $2.1 billion of debt, would feel it first, and the stock would re-rate toward the static frames below.
Valuation
Ormat is a moat-premium valuation sitting above its supported range. The base estimate is near $57 with a wide range of roughly $35 to $100, against a price of $127.73 (June 27, 2026), so the price is above even the high end of the band. The method split is stark: a DCF exit multiple near $110, EV/EBITDA relative near $113, and a discounted future market cap near $157 reach or exceed the price, while the asset-based methods land in the teens to low $20s, the earnings-power methods near $28, and several relative reads in the $20s to $40s. The characterization is that asset, earnings-power and peer-multiple models all say richly valued, and only the growth-DCF reaches the price, so the premium is a durability bet the static frames cannot price.
The inversion is moderate in duration but demanding in what it assumes. With a current operating margin around 17%, backing out the price implies an operating margin near 10% sustained with growth over about 5.7 years. The shorter duration is a point in Ormat's favor relative to the multi-decade names, but the rarity assessment is elevated with the fade check tripped, and the record quarter leaned on volatile storage and product revenue. The methods are pricing the contracted electricity annuity as solid and the growth on top as the question.
The balance sheet is the dominant risk the central estimate cannot fully capture. Net debt near $2.1 billion at roughly 10x operating income, with interest coverage of just 1.3x, means the equity is highly geared to financing costs. A capital-intensive IPP at this leverage is acutely sensitive to interest rates and to the availability and cost of project financing. That is why the asset and earnings-power frames sit so far below the price: they weigh the debt heavily. The valuation question is whether the contracted base plus the data-center and storage growth justify paying above the range for a heavily leveraged renewable producer. The methods say the premium is only defensible if rates ease, incentives hold, and the growth segments prove durable rather than lumpy.
Catalysts
Ormat reported record Q1 2026 on May 8, 2026: revenue up 75.8% to $403.9 million and adjusted EPS of $1.30, beating estimates by 41%, with energy storage revenue up 153% and electricity revenue of $181.6 million (StockTitan). The company signed power-purchase agreements with Google and Switch tied to data-center demand and backed its full-year 2026 revenue outlook of $1.11 to $1.16 billion (Investing.com).
The catalysts ahead are the data-center contracts, the storage ramp, and the financing environment. Ormat is advancing Enhanced Geothermal Systems pilots with SLB and Sage Geosystems, targeting initial production by 2027 (Seeking Alpha). Watch three things over the coming quarters: whether the hyperscaler PPAs translate into firm new electricity capacity and revenue, whether the energy-storage and product segments keep growing rather than reverting to lumpier results, and most importantly the trajectory of interest rates and project-financing costs against the heavy debt load and thin coverage. New contracted capacity at reasonable financing cost would support the premium the price assumes; rising rates, an incentive rollback, or uneven storage and product revenue would expose the leverage and pull the stock toward the static valuation methods, which sit below the current price.
Peer Cohorts (Per Segment, With Filing Citations)
Electricity (reported)
- CWEN (Clearway Energy, Inc.)
- FY2025 10-K: …used for the wholesale sale of electricity or transmission in interstate commerce as public utilities, and is charged with ensuring that market rules are just and reasonable. Public utilities are required to obtain FERC's acceptance, pursuant to Section 205 of the FPA, of their rate schedules for the wholesale sale…
- FY2025 10-K: …prior to the expiration thereof, the Company's assets, liabilities, business, financial condition, results of operations and cash flows could be materially and adversely affected. Furthermore, to the extent any of the Company's power purchasers are, or are controlled by, governmental entities, the Company's…
- BEPC (BROOKFIELD RENEWABLE CORPORATION)
- FY2025 20-F: …the duration and magnitude of changing weather conditions, which could adversely affect our business, results of operations and cash flows. Page 20 Supply and demand in energy markets are volatile and such volatility could have an adverse impact on electricity prices and an adverse effect on Brookfield Renewable's…
- FY2025 20-F: …power, has increased significantly, and is expected to continue to increase, there can be no assurance that such demand will continue to grow or at what rate. Additionally, such demand may exacerbate transmission constraints, interconnection delays, and regulatory intervention, which could limit our ability to…
- NEE (NextEra Energy Inc)
- FY2025 10-K: ; provides full energy and capacity requirements to customers; and • markets and trades energy-related commodity products, including power and fuel, as well as marketing and trading services to customers. In January 2026, a wholly owned subsidiary of NextEra Energy Resources acquired Symmetry Energy Solutions, a…
- FY2025 10-K: …iso4217:USD xbrli:shares nee:agreement nee:county xbrli:pure utr:kWh utr:MW nee:unit nee:facility utr:Btu utr:MWh utr:MMBTU utr:bbl nee:customer nee:state nee:investment utr:mi nee:variable_interest_entity utr:Rate nee:segment 0000753308 2025-01-01 2025-12-31 0000753308 nee:FloridaPowerLightCompanyMember 2025-01-01…
- AES (AES CORP)
- FY2025 10-K: . FERC is also encouraging the construction of new transmission infrastructure in accordance with provisions of EPAct 2005. Although new transmission lines may increase market opportunities, they may also increase the competition in our existing markets. Additionally, the market rules in the wholesale electric markets…
- FY2025 10-K: …stack; • increased adoption of distributed generation; • energy efficiency and demand side resources; • available supplies of coal, natural gas, and crude oil and refined products; • generating unit performance; • natural disasters, terrorism, wars, embargoes, pandemics, and other catastrophic events; • energy,…
- VST (Vistra Corp.)
- FY2025 10-K: …(e.g., ERCOT, PJM, ISO-NE, NYISO, MISO, CAISO), all generators receive the same price for energy based on the bid price of the last MWh needed to balance supply and demand. Prices vary within different zones due to transmission losses and congestion. For example, if a less efficient natural gas unit is needed to meet…
- FY2025 10-K: …a REP in certain areas of MISO that is engaged in the retail sale of electricity to municipal customers Lotus Lotus Infrastructure Partners Luminant subsidiaries of Vistra engaged in competitive market activities consisting of electricity generation and wholesale energy sales and purchases as well as commodity risk…
- CEG (CONSTELLATION ENERGY CORPORATION)
- FY2025 10-K: …safely generating and delivering electricity and related energy solutions, this growing demand represents a natural and meaningful opportunity for long-term growth. Onshoring of Manufacturing. Recent federal industrial policy, most notably the CHIPS and Science Act and the IRA, explicitly incentivize the return of…
- FY2025 10-K: …Operating revenues or Purchased power and fuel expense within each region, depending on our net hourly position. The price of electricity is impacted by several variables, including but not limited to, the price of fuels, generation resources in the region, weather, ongoing competition, emerging technologies, as well…
Product (reported)
- GEV (GE Vernova Inc.)
- FY2025 10-K: …and the return of any remaining cash to GE in a future reporting period once resolved. In addition, the liability includes $ 186 million of indemnifications in connection with agreements entered into with GE related to the Spin-Off, including the Tax Matters Agreement. 2025 FORM 10-K 69 Product Warranties. We provide…
- FY2025 10-K: …2026-01-01 2025-12-31 0001996810 us-gaap:ServiceMember gev:PerformanceObligationSatisfactionPeriodTwoMember 2026-01-01 2025-12-31 0001996810 us-gaap:ServiceMember gev:PerformanceObligationSatisfactionPeriodThreeMember 2026-01-01 2025-12-31 0001996810 us-gaap:ServiceMember…
- FLNC (Fluence Energy Inc)
- FY2025 10-K: …of ASC 606. As of September 30, 2025, the Company's revenue was generated primarily from sale of energy storage products and solutions, providing operational services related to energy storage products, and digital applications. We may refer to our energy storage products as "energy storage solutions" throughout…
- FY2025 10-K: …Pack Our Fluence-designed Battery Packs are used in our Gridstack Pro 2000 solutions for optimized system performance and supply chain agility. The Fluence-designed Battery Packs combine state-of-the-art battery modules, management systems, and monitoring equipment into a unified product architecture designed to…
- GNRC (GENERAC HOLDINGS INC.)
- FY2025 10-K: …powered by both engines and batteries. We classify our products and services into three categories based on similar ranges of power output geared for varying end customer uses: Residential products, C&I products, and Other products and services. The following summary outlines these categories, including their key…
- FY2025 10-K: …their generator as a DER in grid services applications where available. Finally, we continue to provide various gaseous-engine control systems and accessories, which are used in our natural gas generators, as well as sold to other gas-engine manufacturers and aftermarket customers. C&I products comprised 34.6%, 32.3%…
- POWL (Powell Industries, Inc.)
- FY2025 10-K: …support increased schedule flexibility and multiple ship lanes for the varied needs and project timelines of our customers. The incremental capacity is initially expected to support the Company's oil and gas customers but can be utilized to support each of our market sectors. Construction is expected to begin during…
- FY2025 10-K: …third-party EPC firms hired by the end user and with whom we often have long, established relationships. Ultimately, our competitive position is dependent upon our ability to provide quality custom-engineered products, services and systems on a timely basis at a competitive price. Backlog Backlog represents…
Energy Storage (reported)
- CWEN (Clearway Energy, Inc.)
- FY2025 10-K: …acquire new facilities with renewable developers who retain ownership of their renewable power plants, independent power producers, financial investors and other downstream power infrastructure owners. Competitive conditions may be substantially affected by capital market conditions and by various forms of…
- FY2025 10-K: …energy assets generally. The financial viability of these assets may, from time to time, be impacted by public policy mechanisms, including PTCs, ITCs, cash grants, loan guarantees, accelerated depreciation, RPS and carbon trading plans. These mechanisms have been implemented at the state and federal levels to…
- BEPC (BROOKFIELD RENEWABLE CORPORATION)
- FY2025 20-F: …Our group has also made investments in sustainable solutions, comprised of assets and businesses that enable the transition to net-zero where we can leverage our access to capital and partnerships to accelerate growth, and emerging transition asset classes where our group's initial investment positions us for…
- FY2025 20-F: …" Energy Marketing Agreement " has the meaning given to it under Item 7.B "Related Party Transactions - Energy Marketing Agreement". " Energy Marketing Internalization " has the meaning given to it under Item 7.B "Related Party Transactions - Energy Marketing Internalization". " Energy Revenue Agreement " has the…
- NEE (NextEra Energy Inc)
- FY2025 10-K: …and/or energy output through long-term power sales and battery storage tolling agreements with utilities, retail electricity providers, power cooperatives, municipal electric providers and commercial and industrial customers. The NEER segment also owns, develops, constructs and operates rate-regulated electric…
- FY2025 10-K: …generation facilities and builds and owns regulated electric and gas transmission assets. NEER also provides gas and power solutions through its customer supply business. NEER's strategy focuses on providing cost-effective differentiated solutions to its customers, including emerging large-load opportunities, and on…
- VST (Vistra Corp.)
- FY2025 10-K: …in wholesale electricity supply due to intermittent wind and solar production and state of charge limitation from battery energy storage. Periods of extreme weather, including prolonged high temperatures during summer months or severe cold during winter months, can materially increase electricity demand and reduce…
- FY2025 10-K: …to our customers, including 100% wind and solar options, as well as thermostats, dashboards, and other programs designed to encourage reduced electricity consumption and increased energy efficiency. Our distinctive power products give our customers choice, convenience, and control over how and when they use…
- CEG (CONSTELLATION ENERGY CORPORATION)
- FY2025 10-K: NRC licensed any such facilities. We currently store all SNF generated by our nuclear generating facilities on-site in storage pools or in dry cask storage facilities. Since our SNF storage pools generally do not have sufficient storage capacity for the life of the respective plant, we have developed dry cask storage…
- FY2025 10-K: …table presents our interests in net electric generating capacity by station at December 31, 2025: Station (a) Location No. of Units Percent Owned (b) Primary Fuel Type Primary Dispatch Type (c) Net Generation Capacity (MWs) (d) Midwest Braidwood Braidwood, IL 2 Uranium Baseload 2,386 Byron Byron, IL 2 Uranium…
- MGEE (MGE Energy, Inc.)
- FY2025 10-K: …conservation 40 programs, load growth, the timing of any required regulatory approvals, and the adequacy of rate recovery. Actual events may differ materially from these assumptions and result in material changes to those forecasted amounts. Forecasted capital expenditures reflect the following significant generation…
- FY2025 10-K: …Canada and the mid-continent and Gulf Coast regions of the United States. During the winter months, when customer demand is typically higher, MGE is primarily concerned with meeting its obligation to customers. MGE meets customer demand by using firm supplies under contracts finalized before the heating season,…
- TXNM (TXNM Energy, Inc.)
- FY2025 10-K: …and a data center located in PNM's service territory. PNM's approved resource plans have a generation capacity of 1,453 MW. This includes approximately 285 MW of capacity under the Community Solar Act which will provide customers an additional option of A - 50 Table of Contents accessing solar energy. PNM will…
- FY2025 10-K: …approximately 11,639 homes in PNM's service territory. PNM's load management and energy efficiency programs also help lower peak demand requirements. In 2025, TNMP's incremental energy saved as a result of participation in TNMP's energy efficiency programs is estimated to be approximately 20 GWh. This is equivalent…
- PNW (PINNACLE WEST CAPITAL CORP)
- FY2025 10-K: …other strategies, APS intends to achieve this goal through various methods such as relying on Palo Verde, one of the nation's largest producers of carbon-free energy; seeking a balanced energy mix; managing demand with a modern interactive grid; promoting customer technology and energy efficiency; and optimizing…
- FY2025 10-K: …of energy per unit compared to, for example, the 1,400 MW per unit generated at Palo Verde. The utilities have applied for a grant from DOE to begin preliminary exploration of a potential site for additional nuclear energy for Arizona. The grant could support a three-year site selection process and possible…
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.