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Sempra Energy’s Valuation Compared to Its Peers


Dec. 28 2018, Updated 12:35 p.m. ET

Sempra Energy’s valuation

Sempra Energy (SRE), the largest utility stock by market cap in California, is trading at a forward PE ratio above 19x. Sempra Energy’s five-year average historical valuation is ~20x.

In comparison, utilities at large have a forward PE ratio close to 15x. PG&E (PCG) and Edison International (EIX) are trading at forward PE ratios of 12x and 15.5x, respectively.

PG&E stock is trading at a large discount compared to its peers and its historical average. However, investors might shun PG&E due to uncertainties associated with the company despite the discounted valuation. PG&E hasn’t paid dividends to its shareholders in almost a year. The harsh weakness in PG&E stock and the lack of dividends must be frustrating for PG&E investors. To learn more, read PG&E: Recent Developments and Chart Indicators.

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