• If you are wondering whether IDACORP at around US$144.27 is still a sensible entry or hold for you, this valuation breakdown is designed to help you frame that question clearly.
• The stock has logged returns of 3.4% over the last week, 0.4% over the last month, 13.3% year to date and 23.9% over the last year, with longer term figures of 42.6% over three years and 68.1% over five years.
• Recent market attention has kept IDACORP on the radar for investors looking at regulated utilities and income oriented names. In that context, it is especially important to check whether the current share price lines up with what the underlying business may reasonably justify.
• Right now, IDACORP has a valuation score of 1 out of 6. The key question is how different valuation methods interpret that signal and whether a broader framework later in this article can give you an even clearer read on value.

IDACORP scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: IDACORP Dividend Discount Model (DDM) Analysis

The Dividend Discount Model estimates what IDACORP might be worth by projecting future dividends and discounting them back to today, then comparing that figure with the current share price.

For IDACORP, the model uses a dividend per share of about $3.99, a return on equity of 9.37% and a payout ratio of roughly 60.12%. The implied dividend growth rate used in the model is 3.41%, capped from a higher starting figure, with an expected growth input of 3.74%. These inputs aim to keep the dividend outlook aligned with a level that could be sustainable rather than aggressive.

On this basis, the DDM output suggests an intrinsic value of about $111.92 per share, which compares with the current market price of around $144.27. The model therefore points to IDACORP trading at roughly a 28.9% premium to its dividend based valuation, so the stock screens as expensive on this metric.

Result: OVERVALUED

Our Dividend Discount Model (DDM) analysis suggests IDACORP may be overvalued by 28.9%. Discover 62 high quality undervalued stocks or create your own screener to find better value opportunities.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for IDACORP.

Approach 2: IDACORP Price vs Earnings

For a profitable company like IDACORP, the P/E ratio is a practical way to relate what you are paying for each share to the earnings that support it. In general, higher growth expectations or lower perceived risk can justify a higher P/E, while slower growth or higher risk tend to support a lower, more cautious multiple.

IDACORP currently trades at about 24.49x earnings. That compares with an Electric Utilities industry average P/E of around 21.87x and a peer group average of about 26.04x. Simply Wall St also provides a proprietary “Fair Ratio” of 20.80x for IDACORP, which reflects factors such as the company’s earnings profile, margins, industry, market value and risk characteristics.

This Fair Ratio is designed to be more tailored than a simple comparison with peers or the sector, because it adjusts for company specific traits rather than assuming all utilities deserve the same multiple. Setting the current P/E of 24.49x against the Fair Ratio of 20.80x suggests that the shares trade on a richer multiple than this customised benchmark.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your IDACORP Narrative

Earlier it was mentioned that there is an even better way to understand valuation, so this is where Narratives come in. They give you a simple story that links your view of IDACORP's business to a financial forecast and then to a Fair Value you can compare with the current share price.

A Narrative on Simply Wall St is your own explanation for what is driving IDACORP, paired with your assumptions for future revenue, earnings, margins and the valuation multiple you think is reasonable. All of this is pulled together into a Fair Value that updates automatically when new earnings, news or guidance arrives.

Within the Community page on Simply Wall St, used by millions of investors, you can see different Narratives side by side. For example, one investor might anchor on the higher analyst target of US$160 because they focus on rate base expansion and electrification demand, while another might lean toward the US$118 low because they emphasise hydro risk, regulatory uncertainty and rising capital needs. Comparing those Fair Values with today’s price can then help you decide whether IDACORP currently looks closer to a buy, a hold or a sell for your own situation.

Do you think there's more to the story for IDACORP? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.