Intrinsic value of Edison International - EIX

Previous Close

$69.32

  Intrinsic Value

$21.49

stock screener

  Rating & Target

str. sell

-69%

Previous close

$69.32

 
Intrinsic value

$21.49

 
Up/down potential

-69%

 
Rating

str. sell

We calculate the intrinsic value of EIX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 22.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.80
  3.92
  4.03
  4.13
  4.21
  4.29
  4.36
  4.43
  4.48
  4.54
  4.58
  4.62
  4.66
  4.69
  4.73
  4.75
  4.78
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
Revenue, $m
  12,788
  13,289
  13,825
  14,395
  15,001
  15,645
  16,328
  17,050
  17,815
  18,623
  19,476
  20,376
  21,326
  22,327
  23,383
  24,494
  25,664
  26,896
  28,192
  29,556
  30,991
  32,500
  34,086
  35,754
  37,508
  39,351
  41,288
  43,324
  45,463
  47,710
Variable operating expenses, $m
  10,537
  10,951
  11,392
  11,862
  12,361
  12,892
  13,454
  14,050
  14,679
  15,345
  16,048
  16,790
  17,573
  18,398
  19,267
  20,183
  21,147
  22,162
  23,230
  24,354
  25,537
  26,780
  28,087
  29,462
  30,907
  32,425
  34,021
  35,699
  37,461
  39,313
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  10,537
  10,951
  11,392
  11,862
  12,361
  12,892
  13,454
  14,050
  14,679
  15,345
  16,048
  16,790
  17,573
  18,398
  19,267
  20,183
  21,147
  22,162
  23,230
  24,354
  25,537
  26,780
  28,087
  29,462
  30,907
  32,425
  34,021
  35,699
  37,461
  39,313
Operating income, $m
  2,251
  2,339
  2,433
  2,534
  2,640
  2,754
  2,874
  3,001
  3,135
  3,278
  3,428
  3,586
  3,753
  3,930
  4,115
  4,311
  4,517
  4,734
  4,962
  5,202
  5,454
  5,720
  5,999
  6,293
  6,601
  6,926
  7,267
  7,625
  8,001
  8,397
EBITDA, $m
  6,197
  6,440
  6,699
  6,976
  7,270
  7,582
  7,912
  8,263
  8,633
  9,025
  9,438
  9,874
  10,335
  10,820
  11,331
  11,870
  12,437
  13,034
  13,662
  14,323
  15,018
  15,749
  16,518
  17,327
  18,176
  19,070
  20,008
  20,995
  22,031
  23,120
Interest expense (income), $m
  504
  784
  871
  961
  1,057
  1,159
  1,268
  1,384
  1,506
  1,636
  1,773
  1,918
  2,071
  2,233
  2,404
  2,583
  2,773
  2,972
  3,182
  3,404
  3,636
  3,881
  4,139
  4,410
  4,695
  4,994
  5,309
  5,640
  5,988
  6,353
  6,737
Earnings before tax, $m
  1,467
  1,468
  1,472
  1,477
  1,481
  1,485
  1,490
  1,495
  1,499
  1,504
  1,509
  1,515
  1,520
  1,526
  1,532
  1,538
  1,545
  1,551
  1,558
  1,566
  1,573
  1,581
  1,589
  1,598
  1,607
  1,617
  1,627
  1,637
  1,648
  1,660
Tax expense, $m
  396
  396
  398
  399
  400
  401
  402
  404
  405
  406
  408
  409
  410
  412
  414
  415
  417
  419
  421
  423
  425
  427
  429
  432
  434
  437
  439
  442
  445
  448
Net income, $m
  1,071
  1,072
  1,075
  1,078
  1,081
  1,084
  1,088
  1,091
  1,095
  1,098
  1,102
  1,106
  1,110
  1,114
  1,118
  1,123
  1,127
  1,132
  1,137
  1,143
  1,148
  1,154
  1,160
  1,167
  1,173
  1,180
  1,188
  1,195
  1,203
  1,212

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  54,650
  56,793
  59,080
  61,517
  64,109
  66,860
  69,777
  72,865
  76,132
  79,584
  83,231
  87,079
  91,138
  95,417
  99,925
  104,675
  109,676
  114,940
  120,480
  126,309
  132,440
  138,888
  145,668
  152,797
  160,290
  168,167
  176,445
  185,144
  194,285
  203,889
Adjusted assets (=assets-cash), $m
  54,650
  56,793
  59,080
  61,517
  64,109
  66,860
  69,777
  72,865
  76,132
  79,584
  83,231
  87,079
  91,138
  95,417
  99,925
  104,675
  109,676
  114,940
  120,480
  126,309
  132,440
  138,888
  145,668
  152,797
  160,290
  168,167
  176,445
  185,144
  194,285
  203,889
Revenue / Adjusted assets
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
Average production assets, $m
  39,464
  41,011
  42,663
  44,423
  46,295
  48,281
  50,387
  52,618
  54,977
  57,470
  60,103
  62,882
  65,813
  68,903
  72,159
  75,588
  79,200
  83,001
  87,002
  91,211
  95,638
  100,294
  105,191
  110,338
  115,750
  121,437
  127,415
  133,697
  140,298
  147,233
Working capital, $m
  -1,304
  -1,356
  -1,410
  -1,468
  -1,530
  -1,596
  -1,665
  -1,739
  -1,817
  -1,900
  -1,987
  -2,078
  -2,175
  -2,277
  -2,385
  -2,498
  -2,618
  -2,743
  -2,876
  -3,015
  -3,161
  -3,315
  -3,477
  -3,647
  -3,826
  -4,014
  -4,211
  -4,419
  -4,637
  -4,866
Total debt, $m
  16,125
  17,792
  19,571
  21,467
  23,484
  25,624
  27,893
  30,296
  32,838
  35,524
  38,361
  41,354
  44,512
  47,841
  51,349
  55,044
  58,935
  63,030
  67,341
  71,875
  76,645
  81,662
  86,937
  92,483
  98,313
  104,441
  110,881
  117,649
  124,761
  132,233
Total liabilities, $m
  42,518
  44,185
  45,964
  47,860
  49,877
  52,017
  54,286
  56,689
  59,231
  61,917
  64,754
  67,747
  70,905
  74,234
  77,742
  81,437
  85,328
  89,423
  93,734
  98,268
  103,038
  108,055
  113,330
  118,876
  124,706
  130,834
  137,274
  144,042
  151,154
  158,626
Total equity, $m
  12,132
  12,608
  13,116
  13,657
  14,232
  14,843
  15,490
  16,176
  16,901
  17,668
  18,477
  19,332
  20,233
  21,182
  22,183
  23,238
  24,348
  25,517
  26,747
  28,041
  29,402
  30,833
  32,338
  33,921
  35,584
  37,333
  39,171
  41,102
  43,131
  45,263
Total liabilities and equity, $m
  54,650
  56,793
  59,080
  61,517
  64,109
  66,860
  69,776
  72,865
  76,132
  79,585
  83,231
  87,079
  91,138
  95,416
  99,925
  104,675
  109,676
  114,940
  120,481
  126,309
  132,440
  138,888
  145,668
  152,797
  160,290
  168,167
  176,445
  185,144
  194,285
  203,889
Debt-to-equity ratio
  1.330
  1.410
  1.490
  1.570
  1.650
  1.730
  1.800
  1.870
  1.940
  2.010
  2.080
  2.140
  2.200
  2.260
  2.310
  2.370
  2.420
  2.470
  2.520
  2.560
  2.610
  2.650
  2.690
  2.730
  2.760
  2.800
  2.830
  2.860
  2.890
  2.920
Adjusted equity ratio
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,071
  1,072
  1,075
  1,078
  1,081
  1,084
  1,088
  1,091
  1,095
  1,098
  1,102
  1,106
  1,110
  1,114
  1,118
  1,123
  1,127
  1,132
  1,137
  1,143
  1,148
  1,154
  1,160
  1,167
  1,173
  1,180
  1,188
  1,195
  1,203
  1,212
Depreciation, amort., depletion, $m
  3,946
  4,101
  4,266
  4,442
  4,629
  4,828
  5,039
  5,262
  5,498
  5,747
  6,010
  6,288
  6,581
  6,890
  7,216
  7,559
  7,920
  8,300
  8,700
  9,121
  9,564
  10,029
  10,519
  11,034
  11,575
  12,144
  12,742
  13,370
  14,030
  14,723
Funds from operations, $m
  5,017
  5,173
  5,341
  5,520
  5,711
  5,912
  6,126
  6,353
  6,592
  6,845
  7,112
  7,394
  7,691
  8,004
  8,334
  8,682
  9,047
  9,432
  9,838
  10,264
  10,712
  11,184
  11,679
  12,201
  12,748
  13,324
  13,929
  14,565
  15,233
  15,935
Change in working capital, $m
  -48
  -51
  -55
  -58
  -62
  -66
  -70
  -74
  -78
  -82
  -87
  -92
  -97
  -102
  -108
  -113
  -119
  -126
  -132
  -139
  -146
  -154
  -162
  -170
  -179
  -188
  -198
  -208
  -218
  -229
Cash from operations, $m
  5,065
  5,224
  5,396
  5,578
  5,772
  5,978
  6,196
  6,427
  6,670
  6,928
  7,199
  7,486
  7,788
  8,106
  8,442
  8,795
  9,167
  9,558
  9,970
  10,403
  10,859
  11,338
  11,841
  12,371
  12,927
  13,512
  14,127
  14,773
  15,451
  16,164
Maintenance CAPEX, $m
  -3,803
  -3,946
  -4,101
  -4,266
  -4,442
  -4,629
  -4,828
  -5,039
  -5,262
  -5,498
  -5,747
  -6,010
  -6,288
  -6,581
  -6,890
  -7,216
  -7,559
  -7,920
  -8,300
  -8,700
  -9,121
  -9,564
  -10,029
  -10,519
  -11,034
  -11,575
  -12,144
  -12,742
  -13,370
  -14,030
New CAPEX, $m
  -1,439
  -1,547
  -1,652
  -1,760
  -1,871
  -1,987
  -2,106
  -2,230
  -2,359
  -2,493
  -2,633
  -2,779
  -2,931
  -3,090
  -3,256
  -3,430
  -3,611
  -3,801
  -4,001
  -4,209
  -4,427
  -4,656
  -4,896
  -5,148
  -5,411
  -5,688
  -5,978
  -6,282
  -6,601
  -6,936
Cash from investing activities, $m
  -5,242
  -5,493
  -5,753
  -6,026
  -6,313
  -6,616
  -6,934
  -7,269
  -7,621
  -7,991
  -8,380
  -8,789
  -9,219
  -9,671
  -10,146
  -10,646
  -11,170
  -11,721
  -12,301
  -12,909
  -13,548
  -14,220
  -14,925
  -15,667
  -16,445
  -17,263
  -18,122
  -19,024
  -19,971
  -20,966
Free cash flow, $m
  -177
  -269
  -357
  -448
  -541
  -638
  -738
  -842
  -951
  -1,063
  -1,181
  -1,303
  -1,431
  -1,565
  -1,704
  -1,851
  -2,003
  -2,163
  -2,331
  -2,506
  -2,690
  -2,883
  -3,084
  -3,296
  -3,518
  -3,751
  -3,995
  -4,251
  -4,519
  -4,801
Issuance/(repayment) of debt, $m
  1,609
  1,667
  1,780
  1,896
  2,016
  2,140
  2,269
  2,403
  2,542
  2,686
  2,837
  2,994
  3,158
  3,329
  3,508
  3,695
  3,891
  4,096
  4,310
  4,535
  4,770
  5,017
  5,275
  5,546
  5,830
  6,128
  6,440
  6,768
  7,112
  7,472
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  36
  92
  151
  213
  277
  345
  416
  490
  568
  650
  736
  826
  920
Cash from financing (excl. dividends), $m  
  1,609
  1,667
  1,780
  1,896
  2,016
  2,140
  2,269
  2,403
  2,542
  2,686
  2,837
  2,994
  3,158
  3,329
  3,508
  3,695
  3,891
  4,132
  4,402
  4,686
  4,983
  5,294
  5,620
  5,962
  6,320
  6,696
  7,090
  7,504
  7,938
  8,392
Total cash flow (excl. dividends), $m
  1,432
  1,397
  1,422
  1,448
  1,475
  1,502
  1,531
  1,560
  1,591
  1,623
  1,656
  1,691
  1,727
  1,764
  1,803
  1,844
  1,887
  1,969
  2,072
  2,180
  2,293
  2,411
  2,536
  2,666
  2,802
  2,945
  3,096
  3,253
  3,418
  3,592
Retained Cash Flow (-), $m
  -461
  -476
  -508
  -541
  -575
  -611
  -647
  -686
  -725
  -766
  -809
  -854
  -901
  -950
  -1,001
  -1,054
  -1,110
  -1,169
  -1,230
  -1,294
  -1,361
  -1,431
  -1,505
  -1,583
  -1,664
  -1,749
  -1,838
  -1,931
  -2,029
  -2,132
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  971
  922
  915
  907
  900
  892
  883
  875
  866
  856
  847
  836
  826
  814
  802
  790
  777
  800
  842
  886
  932
  980
  1,030
  1,083
  1,139
  1,197
  1,258
  1,322
  1,389
  1,459
Discount rate, %
  7.10
  7.46
  7.83
  8.22
  8.63
  9.06
  9.51
  9.99
  10.49
  11.01
  11.57
  12.14
  12.75
  13.39
  14.06
  14.76
  15.50
  16.27
  17.09
  17.94
  18.84
  19.78
  20.77
  21.81
  22.90
  24.04
  25.25
  26.51
  27.83
  29.22
PV of cash for distribution, $m
  906
  798
  730
  661
  595
  530
  468
  408
  353
  301
  254
  211
  173
  140
  112
  87
  67
  53
  42
  33
  25
  18
  13
  10
  7
  4
  3
  2
  1
  1
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  99.9
  99.7
  99.4
  99.1
  98.6
  98.0
  97.4
  96.6
  95.9
  95.0
  94.1
  93.1
  92.1

Edison International is the holding company of Southern California Edison Company (SCE). As of December 31, 2016, SCE, a public utility, was primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. The Company is also the parent company of Edison Energy Group, Inc. (Edison Energy Group), a holding company for subsidiaries engaged in pursuing competitive business opportunities across energy services and distributed solar to commercial and industrial customers. SCE's projects include West of Devers, Mesa Substation, Alberhill System, Riverside Transmission Reliability, Eldorado-Lugo-Mohave Upgrade, Tehachapi and Coolwater-Lugo. As of December 31, 2016, the West of Devers Project consisted of upgrading and reconfiguring approximately 48 miles of existing 220 kilovolt (kV) transmission lines between the Devers, El Casco, Vista and San Bernardino substations.

FINANCIAL RATIOS  of  Edison International (EIX)

Valuation Ratios
P/E Ratio 15.7
Price to Sales 1.9
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 6.9
Price to Free Cash Flow -47.2
Growth Rates
Sales Growth Rate 3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -11.6%
Cap. Spend. - 3 Yr. Gr. Rate 0.7%
Financial Strength
Quick Ratio 0
Current Ratio 0.2
LT Debt to Equity 71.7%
Total Debt to Equity 87.8%
Interest Coverage 4
Management Effectiveness
Return On Assets 3.7%
Ret/ On Assets - 3 Yr. Avg. 3.7%
Return On Total Capital 5.5%
Ret/ On T. Cap. - 3 Yr. Avg. 5.8%
Return On Equity 10.4%
Return On Equity - 3 Yr. Avg. 11%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 35.3%
EBITDA Margin - 3 Yr. Avg. 34.3%
Operating Margin 17.6%
Oper. Margin - 3 Yr. Avg. 17.8%
Pre-Tax Margin 13.4%
Pre-Tax Margin - 3 Yr. Avg. 13.9%
Net Profit Margin 12.1%
Net Profit Margin - 3 Yr. Avg. 11.6%
Effective Tax Rate 11.1%
Eff/ Tax Rate - 3 Yr. Avg. 21.5%
Payout Ratio 43.7%

EIX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EIX stock intrinsic value calculation we used $12320 million for the last fiscal year's total revenue generated by Edison International. The default revenue input number comes from 2017 income statement of Edison International. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our EIX stock valuation model: a) initial revenue growth rate of 3.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.1%, whose default value for EIX is calculated based on our internal credit rating of Edison International, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Edison International.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of EIX stock the variable cost ratio is equal to 82.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for EIX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Edison International.

Corporate tax rate of 27% is the nominal tax rate for Edison International. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the EIX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for EIX are equal to 308.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Edison International operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for EIX is equal to -10.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $11671 million for Edison International - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 326 million for Edison International is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Edison International at the current share price and the inputted number of shares is $22.6 billion.

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COMPANY NEWS

▶ Edison International: 2Q Earnings Snapshot   [Jul-26-18 04:25PM  Associated Press]
▶ The Hippie Ways Californians Fight Energy Projects   [Jun-08-18 04:54PM  Bloomberg]
▶ California Lawmakers Consider Wildfire Relief Fund   [Jun-01-18 09:50PM  Bloomberg]
▶ Best Dividend Stock Picks   [May-19-18 09:02AM  Simply Wall St.]
▶ Edison International: 1Q Earnings Snapshot   [May-01-18 04:17PM  Associated Press]
▶ Southern California Edison Declares Dividends   [Apr-26-18 04:36PM  Business Wire]
▶ More Renewable Energy Helps Fight Climate Change   [Apr-25-18 03:46PM  Business Wire]
▶ Family Blames Edison for Fatal Montecito Mudslide   [Mar-29-18 06:08PM  Bloomberg]
▶ PG&E Stock Breaks Out After California Proposal   [Mar-14-18 10:28AM  Investopedia]
▶ Edison International reports 4Q loss   [04:55PM  Associated Press]
▶ Investors Favorite Dividend Stocks   [08:02AM  Simply Wall St.]
▶ Ray Dalio's Bridgewater Bets on Utilities in 4th Quarter   [Feb-14-18 12:56PM  GuruFocus.com]
▶ Settlement Reached in San Onofre Nuclear Plant Closure   [Jan-30-18 09:09PM  Business Wire]
▶ A Look at Edisons Valuation, Price Targets, and More   [Dec-28-17 07:30AM  Market Realist]
▶ Analysts Views on Edison International Changed Recently   [Dec-27-17 11:55AM  Market Realist]
▶ SCG, PCG, EIX: Analyzing the Most Volatile Utilities Returns   [Dec-26-17 12:15PM  Market Realist]
▶ What PG&E Investors Should Do amid Mounting Challenges   [Dec-25-17 09:02AM  Market Realist]
▶ PG&E Stock Fell 13% after Dividend Suspension   [Dec-22-17 11:04AM  Market Realist]
▶ These Dividend-Paying Utility Stocks Sink As Wildfire Liability Looms   [Dec-21-17 11:30AM  Investor's Business Daily]
▶ 52-Week Company Lows   [10:22AM  GuruFocus.com]
▶ Looking at AESs Implied Volatility Trends   [Dec-18-17 07:34AM  Market Realist]
▶ 52-Week Company Lows   [Dec-15-17 10:53AM  GuruFocus.com]
▶ Whats Next for Edison International Stock?   [12:52PM  Market Realist]
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