$16.82
-0.18%Pacific Gas and Electric Company generates, transmits, distributes, and sells electricity and natural gas to customers in northern and central California, the United States. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, and photovoltaic sources. The company also develops a personal microgrid backup power transfer meter device for customers that fully integrates into its existing electric SmartMeter system. It serves residential, commercial, industrial, and agricultural customers, as well as natural gas-fired electric generation facilities. The company was incorporated in 1905 and is headquartered in San Francisco, California. Pacific Gas and Electric Company operates as a subsidiary of PG&E Corporation.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
Operating Cash Flow - Maintenance CapEx = Owner Earnings
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $6.0B | $4.1B | $2.8B | $1.9B | $1.3B | $894.4M | $612.0M | $418.7M | $286.5M | $196.0M |
| Maintenance CapEx | -$1.6B | -$1.1B | -$755.2M | -$516.7M | -$353.6M | -$241.9M | -$165.5M | -$113.3M | -$77.5M | -$53.0M |
| Owner Earnings | $4.4B | $3.0B | $2.0B | $1.4B | $953.6M | $652.5M | $446.5M | $305.5M | $209.0M | $143.0M |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | $4.0B | $2.6B | $1.6B | $1.0B | $649.0M | $411.2M | $260.5M | $165.0M | $104.6M | $66.2M |
Snapshot
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Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.