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How Sempra Energy Looks from a Valuation Perspective

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Mar. 9 2018, Updated 9:00 a.m. ET

Valuation

Sempra Energy (SRE) is trading at an EV-to-EBITDA multiple of 13x—higher than its five-year historical average. Utilities at large (XLU) are currently trading at an EV-to-EBITDA valuation of 11x, while their current PE multiple stands around 13x. Sempra Energy is trading at a PE multiple of 24.5x. It appears to be trading at a significant premium compared to its peers and the historical average.

In comparison, PG&E Corporation (PCG) is currently trading at a PE multiple of 12x, while Edison International (EIX) is currently trading at a valuation multiple of 19x.

Sempra Energy is likely to close its ongoing acquisition of the Texas-based Oncor Electric by mid-2018. On the other hand, Dominion Energy (D) continues its merger with SCANA (SCG). To learn more, see Dominion Energy or Sempra Energy: Which Could Be Stronger?

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