Latest Ratios: P/E Ratio 21.5x · EV/EBITDA 14.8x · ROE 8.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.2B | $10.8B | $9.9B | $8.2B | $8.6B | $8.0B | $9.0B | $10.1B | $9.6B | $9.6B | $8.7B |
| Enterprise Value | $31.0B | $28.7B | $20.9B | $18.5B | $17.5B | $16.2B | $15.9B | $15.9B | $14.8B | $14.5B | $13.1B |
| P/E Ratio → | 21.51 | 17.56 | 16.18 | 16.29 | 17.85 | 12.90 | 16.42 | 18.85 | 18.77 | 19.58 | 19.75 |
| P/S Ratio | 2.46 | 2.03 | 1.92 | 1.74 | 1.99 | 2.10 | 2.52 | 2.92 | 2.60 | 2.68 | 2.50 |
| P/B Ratio | 1.87 | 1.53 | 1.44 | 1.30 | 1.40 | 1.33 | 1.57 | 1.83 | 1.79 | 1.86 | 1.77 |
| P/FCF | — | — | — | — | — | — | — | — | 96.89 | — | — |
| P/OCF | 7.29 | 5.99 | 6.12 | 6.77 | 6.95 | 9.29 | 9.34 | 10.60 | 7.51 | 8.56 | 8.54 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.37 | 4.08 | 3.93 | 4.05 | 4.25 | 4.43 | 4.59 | 4.01 | 4.07 | 3.73 |
| EV / EBITDA | 14.85 | 13.73 | 10.62 | 11.00 | 11.29 | 10.60 | 10.78 | 11.93 | 10.39 | 9.55 | 9.32 |
| EV / EBIT | 27.73 | 24.70 | 18.76 | 19.93 | 21.05 | 16.51 | 18.11 | 21.01 | 16.76 | 15.07 | 14.78 |
| EV / FCF | — | — | — | — | — | — | — | — | 149.51 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.4% | 25.4% | 41.7% | 39.3% | 39.5% | 44.6% | 45.6% | 42.8% | 42.8% | 45.9% | 42.6% |
| Operating Margin | 20.9% | 20.9% | 19.7% | 17.6% | 16.9% | 21.2% | 22.0% | 19.4% | 21.0% | 25.5% | 23.9% |
| Net Profit Margin | 11.5% | 11.5% | 11.9% | 10.7% | 11.2% | 16.3% | 15.3% | 15.5% | 13.8% | 13.7% | 12.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.8% | 8.8% | 9.3% | 8.1% | 7.9% | 10.5% | 9.7% | 9.9% | 9.7% | 9.7% | 9.2% |
| ROA | 2.1% | 2.1% | 2.4% | 2.1% | 2.2% | 2.9% | 2.9% | 3.0% | 2.9% | 3.0% | 2.8% |
| ROIC | 3.9% | 3.9% | 4.4% | 3.9% | 3.8% | 4.5% | 4.9% | 4.6% | 5.6% | 7.1% | 7.1% |
| ROCE | 4.3% | 4.3% | 4.5% | 3.9% | 3.6% | 4.1% | 4.5% | 4.1% | 4.9% | 6.0% | 5.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.52 | 2.52 | 1.61 | 1.64 | 1.44 | 1.36 | 1.20 | 1.05 | 0.97 | 0.97 | 0.88 |
| Debt / EBITDA | 8.55 | 8.55 | 5.61 | 6.14 | 5.73 | 5.37 | 4.69 | 4.35 | 3.66 | 3.27 | 3.09 |
| Net Debt / Equity | — | 2.52 | 1.61 | 1.64 | 1.44 | 1.36 | 1.19 | 1.04 | 0.97 | 0.96 | 0.87 |
| Net Debt / EBITDA | 8.55 | 8.55 | 5.61 | 6.13 | 5.73 | 5.36 | 4.65 | 4.34 | 3.66 | 3.26 | 3.08 |
| Debt / FCF | — | — | — | — | — | — | — | — | 52.63 | — | — |
| Interest Coverage | 2.75 | 2.75 | 2.95 | 2.80 | 3.25 | 4.20 | 3.83 | 3.50 | 4.04 | 4.88 | 4.76 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.49 | 0.49 | 0.59 | 0.67 | 0.99 | 0.88 | 0.88 | 0.50 | 0.56 | 0.85 | 0.64 |
| Quick Ratio | 0.31 | 0.31 | 0.42 | 0.50 | 0.74 | 0.67 | 0.64 | 0.33 | 0.38 | 0.61 | 0.42 |
| Cash Ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.04 | 0.00 | 0.00 | 0.01 | 0.01 |
| Asset Turnover | — | 0.17 | 0.20 | 0.19 | 0.19 | 0.17 | 0.18 | 0.19 | 0.21 | 0.21 | 0.22 |
| Inventory Turnover | 7.05 | 7.05 | 5.96 | 5.78 | 5.81 | 5.74 | 5.84 | 5.74 | 7.18 | 6.67 | 7.10 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.2% | 3.9% | 4.0% | 4.7% | 4.4% | 4.6% | 3.9% | 3.3% | 3.2% | 3.0% | 3.1% |
| Payout Ratio | 68.6% | 68.6% | 64.8% | 77.1% | 78.3% | 59.7% | 63.7% | 61.2% | 60.4% | 59.3% | 62.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.6% | 5.7% | 6.2% | 6.1% | 5.6% | 7.7% | 6.1% | 5.3% | 5.3% | 5.1% | 5.1% |
| FCF Yield | — | — | — | — | — | — | — | — | 1.0% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 3.2% | 3.9% | 4.0% | 4.8% | 4.4% | 4.7% | 3.9% | 3.3% | 3.3% | 3.2% | 3.2% |
| Shares Outstanding | — | $122M | $116M | $114M | $113M | $113M | $113M | $113M | $113M | $112M | $112M |
Regulatory rate case friction
With a forward P/E of 22.79 and a dividend yield of 3.2%, PNW's valuation appears to reflect a market pricing in significant regulatory risk, as investors demand a premium for the persistent friction between infrastructure investment needs and the Arizona Corporation Commission's historical rate-setting stance.
The current valuation suggests that the market is discounting the company's growth potential due to the contentious regulatory environment in Arizona. Investors should monitor whether the massive industrial load growth in the Phoenix area acts as a catalyst for more constructive regulatory outcomes, which would be necessary to justify the current P/E multiple relative to lower-risk utility peers.
As reported in recent financial statements, PNW's ROE has exhibited extreme volatility, ranging from -0.1% to 6.1% over the last ten quarters, which indicates a significant gap between authorized returns and actual earnings power due to the absence of full revenue decoupling and regulatory lag.
The inability to consistently achieve a stable ROE suggests that the company is struggling to recover its costs in a timely manner, particularly given the high capital intensity of its generation and transmission assets. This performance gap warrants further investigation into whether future rate cases will provide the necessary mechanisms to align earned returns with the regulatory allowed levels.
Based on reported figures, the company's debt-to-capital ratio has remained elevated, peaking at 0.72 in 2025Q4, which highlights a strained balance sheet that may limit PNW's capacity to fund its aggressive infrastructure expansion without further dilutive equity issuance or increased borrowing costs.
The persistent reliance on debt to finance capital expenditures, combined with interest coverage ratios that have dipped as low as 0.93, suggests that the company's credit quality is under pressure. Investors should monitor the company's ability to maintain its investment-grade profile while navigating the high-interest-rate environment and the ongoing need for massive grid investment.
According to quarterly cash flow data, the dividend payout ratio has fluctuated significantly, reaching as high as 54.6% in 2025Q2, which underscores the challenge of maintaining shareholder distributions while simultaneously funding a massive capital expenditure program that frequently results in negative free cash flow.
The dividend appears to be supported by external financing rather than organic cash generation, which introduces a layer of risk to the payout's long-term sustainability. The company's ability to maintain its dividend growth will likely depend on its success in securing more favorable rate outcomes that allow for better internal funding of its capital requirements.
The most commonly misapplied ratio for PNW is the standard P/E multiple, which fails to account for the distortive impact of regulatory assets and seasonal earnings volatility, thereby obscuring the true underlying earnings power of the utility's regulated rate base.
Comparing PNW's P/E to industrial companies is fundamentally flawed because it ignores the regulatory compact that caps upside and provides a floor for returns. Analysts should instead focus on the Price-to-Rate-Base or adjusted ROE metrics, which better capture the value of the infrastructure assets and the effectiveness of the regulatory recovery mechanisms.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying PNW stock.
Pinnacle West Capital Corporation's current P/E ratio is 21.5x. The historical average is 17.5x. This places it at the 93th percentile of its historical range.
Pinnacle West Capital Corporation's current EV/EBITDA is 14.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.0x.
Pinnacle West Capital Corporation's return on equity (ROE) is 8.8%. The historical average is 8.9%.
Based on historical data, Pinnacle West Capital Corporation is trading at a P/E of 21.5x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Pinnacle West Capital Corporation's current dividend yield is 3.19% with a payout ratio of 68.6%.
Pinnacle West Capital Corporation has 25.4% gross margin and 20.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Pinnacle West Capital Corporation's Debt/EBITDA ratio is 8.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.