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SCG: Analyzing SCANA’s Current Valuation


Dec. 28 2017, Updated 10:05 a.m. ET

SCANA’s latest valuation

SCANA (SCG) stock is currently trading at a significant discount relative to peers. On December 22, it was trading at an EV-to-EBITDA[1. Enterprise value to earnings before interest, tax, depreciation, and amortization] valuation multiple below 8x, which was way lower than its five-year historical average around 10x. Peers are trading at an average valuation of 11x. So SCANA appears to be trading very cheap compared to its historical average as well as the industry average.

SCANA stock looks to be trading at a discount, considering its price to earnings (or PE) multiple as well. It is currently trading at a PE multiple of 12x. Broader utilities (XLU) (IDU) are presently trading at a PE multiple beyond 20x.

Aggressive investors could consider buying the SCG stock at current levels. However, uncertainties associated with the probe of its nuclear power plant could continue to drive the stock going forward.

You can read about SCANA’s dividends in Don’t Be Deceived by SCANA’s Superior Dividend Yield

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