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Entergy has the Highest EV/EBITDA Ratio in the Electric Utilities Industry (ETR, AEP, PNM, MGEE, LNT)

By Amy Schwartz

Below are the three companies in the Electric Utilities industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Entergy ranks highest with a an EV/EBITDA ratio of 22.90. American Electric Power is next with a an EV/EBITDA ratio of 17.33. PNM Resources ranks third highest with a an EV/EBITDA ratio of 16.57.

MGE Energy follows with a an EV/EBITDA ratio of 15.52, and Alliant Energy rounds out the top five with a an EV/EBITDA ratio of 14.85.

SmarTrend recommended that subscribers consider buying shares of Alliant Energy on December 19th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $37.61. Since that recommendation, shares of Alliant Energy have risen 12.1%. We continue to monitor Alliant Energy for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio entergy american electric power pnm resources mge energy alliant energy