Will Edison International eventually bounce back?

Is the organisation valuation justified? Here I will cover the company prospective on valuation to give you a better outlook on taking a position in this stock. We found thirty-eight available fundamental indicators for Edison International which can be compared to its rivals. To make sure the equity is not overpriced, please confirm all Edison International fundamentals including its Total Debt, Market Capitalization and the relationship between Gross Profit and Short Ratio . Given that Edison International has Price to Earning of 42.57X, we urge you verify Edison International prevailing market performance to make sure the company can sustain itself down the road. Use Edison International to enhance returns of your portfolios. The stock experiences unexpected upward trend. Watch out for market signals. Check odds of Edison International to be traded at $76.54 in 30 days.
Published over a year ago
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Reviewed by Michael Smolkin

Edison International has 17.63B in debt with debt to equity (D/E) ratio of 138.5 . This implies that Edison International may be unable to create cash to meet all of its financial commitments. The company dividends can provide a clue to current valuation of the stock. This firm one year expected dividend income is about $1.17 per share. About 90.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.86. Some equities with similar Price to Book (P/B) outperform the market in the long run. Edison International has Price/Earnings To Growth (PEG) ratio of 2.37. The entity recorded loss per share of 1.12. The firm last dividend was issued on 2019-03-28. Edison International had 2:1 split on 1993-06-22.
We determine the current worth of Edison International using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Edison International based exclusively on its fundamental and basic technical indicators. By analyzing Edison International's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Edison International's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Edison International. We calculate exposure to Edison International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Edison International's related companies.

Edison International Investment Alerts

Edison investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Edison International performance across your portfolios.Please check all investment alerts for Edison

Edison International Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Edison value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Edison International competition to find correlations between indicators driving the intrinsic value of Edison.

Edison International Gross Profit

Edison International Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Edison International previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Edison International Gross Profit growth over the last 10 years. Please check Edison International's gross profit and other fundamental indicators for more details.

Breaking down the case for Edison International

Edison International utilizes its assets almost 2.41 percent, getting $0.0241 for each dollar of assets held by the firm. An increasing assets utilization denotes the company is being more effective with each dollar of assets it shows. In plain English assets utilization of Edison International shows how effective it operates for each dollar spent on its assets. The current investor indifference towards the small price fluctuations of Edison International could raise concerns from investors as the firm closed today at a share price of 61.2 on 3894237.000 in volume. The company executives did not add any value to Edison International investors in May. However, most investors can still diversify their portfolios with Edison International to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.7707. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Edison International maintains shares outstanding of 325.81m. Edison International is trading at 63.78. This is 2.28 percent up. Opened at 63.78. Edison International Net Cash Flow or Change in Cash and Cash Equivalents is increasing over the last 4 years.
Enterprise ValueAverage Equity
 2008 0.00  0.00 
 2009 0.00  0.00 
 2018 0.00  0.00 
 2019 (projected) 0.00  0.00 
All in all, we believe that at this point Edison International is undervalued with close to average probability of distress within the next 2 years. Our concluding 'Buy/Hold/Sell' recommendation on the company is Strong Hold.

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Editorial Staff

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