Pinnacle West Capital
Financial ratios & Valuation

Forward Multiples (2025 – 2028)

2025202620272028
Price/Earnings ratio
18.7817.2916.3615.48
Price/Sales ratio
2.051.951.881.80
Earnings per Share (EPS)
$4.90$5.32$5.62$5.94

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
19.0016.3719.6619.5018.6918.7816.3612.8817.7916.2415.6918.78
Price/Sales ratio
2.162.042.482.672.582.912.512.091.991.731.922.91
Price/Book Value ratio
1.731.561.801.901.821.861.591.341.421.311.461.86
Price/Cash Flow ratio
6.876.548.498.527.4810.569.329.266.936.746.2510.56
Price/Free Cash Flow ratio
39.98392.48-34.48-32.7696.52-43.08-25.00-12.99-18.46-12.76-13.69-43.08
Price/Earnings Growth ratio
-7.011.6725.821.934.293.727.831.06-0.804.62-5.633.72
Dividend Yield
3.26%3.63%3.15%3.04%3.23%3.25%3.89%4.63%4.40%4.74%4.16%3.23%
Profitability Indicator Ratios
Gross Profit Margin
40.20%43.65%43.21%46.54%42.76%42.84%45.57%44.61%39.49%39.28%34.31%42.84%
Operating Profit Margin
23.23%24.44%24.46%26.20%20.96%19.35%21.97%21.17%16.92%17.56%21.12%20.96%
Pretax Profit Margin
18.45%19.85%19.94%21.49%18.00%15.61%18.07%19.61%13.31%12.68%14.86%15.61%
Net Profit Margin
11.38%12.50%12.63%13.70%13.84%15.50%15.34%16.26%11.18%10.68%12.26%15.50%
Effective Tax Rate
34.24%34.25%33.87%33.70%20.15%-2.90%12.05%14.75%12.99%12.91%15.18%15.18%
Return on Assets
2.77%2.90%2.76%2.87%2.89%2.91%2.75%2.81%2.12%2.03%2.33%2.91%
Return On Equity
9.10%9.53%9.20%9.75%9.78%9.91%9.77%10.47%7.99%8.11%9.76%9.91%
Return on Capital Employed
6.36%6.29%5.81%5.90%4.83%4.09%4.22%3.97%3.49%3.78%4.58%4.58%
Liquidity Ratios
Current Ratio
0.620.610.630.840.560.490.88N/AN/AN/A0.700.56
Quick Ratio
0.460.420.410.600.380.320.630.670.730.490.540.38
Cash ratio
0.000.020.000.010.000.000.040.000.000.000.010.00
Days of Sales Outstanding
41.6338.4637.4642.4939.6542.9144.0348.7551.3451.2478.6939.65
Days of Inventory outstanding
44.7551.8751.9155.4050.8063.6462.4963.6162.8663.1758.4350.80
Operating Cycle
86.3890.3489.3897.8990.45106.56106.53112.36114.20114.42137.1390.45
Days of Payables Outstanding
51.6055.1248.6149.1147.9163.7459.5668.1060.0456.6347.5263.74
Cash Conversion Cycle
34.7735.2140.7648.7842.5442.8146.9744.2654.1657.7889.6042.54
Debt Ratios
Debt Ratio
0.240.250.270.290.290.310.320.330.350.360.360.29
Debt Equity Ratio
0.800.830.900.990.991.051.151.241.341.461.460.99
Long-term Debt to Capitalization
0.400.430.450.480.470.470.520.530.560.540.540.47
Total Debt to Capitalization
0.440.450.470.490.490.510.530.550.570.590.590.49
Interest Coverage Ratio
4.374.784.604.723.543.103.44N/AN/AN/A2.873.10
Cash Flow to Debt Ratio
0.310.280.230.220.240.160.140.110.150.130.150.16
Company Equity Multiplier
3.273.273.333.393.383.403.553.723.753.993.973.38
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.310.310.290.310.340.270.260.220.280.250.300.30
Free Cash Flow / Operating Cash Flow Ratio
0.170.01-0.24-0.260.07-0.24-0.37-0.71-0.37-0.52-0.45-0.24
Cash Flow Coverage Ratio
0.310.280.230.220.240.160.140.110.150.130.150.16
Short Term Coverage Ratio
2.073.063.386.302.211.045.711.943.170.810.951.04
Dividend Payout Ratio
62.04%59.46%62.03%59.32%60.44%61.23%63.67%59.71%78.34%77.05%63.77%60.44%