What is Pinnacle West Capital Corporation (PNW) DCF Fair Value and Intrinsic Value in 2026?

Pinnacle West Capital Corporation (PNW) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Pinnacle West Capital Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

Pinnacle West Capital Corporation operates in the Utilities sector (Utilities - Regulated Electric) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Pinnacle West Capital Corporation's financial health rating and Piotroski F-Score?

Pinnacle West Capital Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Pinnacle West Capital Corporation (PNW) for quarterly SEC filing thesis breaks?

LocalAlpha audits Pinnacle West Capital Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksPNW

PNW

Pinnacle West Capital CorporatiUtilities / Utilities - Regulated ElectricINTACT

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. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains substations, including transmission and distribution yards; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.

Share Price

$96.10

52W: $85.32 - $111.16

DCF Fair Value

$0.00

0% Premium

Thesis Hub

P/E (TTM)

18.4x

ROIC

16%

Operating Margin

21.3%

FCF Yield

-8%

Debt / Equity

2.33x

Piotroski Score

4/9

Altman Z-Score

2.22

Market Cap

$11.6B

Price vs. Intrinsic Value Corridor

Fair Value Range

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

Valuation Overlays:0 Revised Graham ($117.01) Graham Number ($82.49)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$96.10

DCF Fair Value

$0.00

-100% Premium

Starting Free Cash Flow ($M)$100M

$100M$-930M (Reported)$50,000M

Stage 1 Growth (Years 1-5)10.7%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$16,500M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$1.0B

PV of Terminal Value

$1.4B

Implied Enterprise Value

$2.4B

Implied Equity Value

$-14.1B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$111	$123	$136	$150	$166	$174	$182	$190	$198	$207
Present Value (PV)	$102	$103	$105	$106	$108	$104	$99	$95	$91	$88

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-16.5% Premium

$82.49

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $5.21BVPS: $58.05

Revised Graham Formula+17.9%

$117.01

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings-7.6% Yield

$-7.30 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $-0.9BYield: -7.6%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

0.0% CAGR (Next 10 Yrs)

At the current price of $96.10, the market is assuming the business will compound Free Cash Flow at 0.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil PNW with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Pinnacle West Capital Corporati. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 21.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Pinnacle West Capital Corporati (PNW) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Pinnacle West Capital Corporati.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Pinnacle West Capital Corporati has an estimated DCF intrinsic fair value of $0.00 per share compared to its current market price of $96.10. This represents an estimated 0.0% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $82.49.