Assessing IDACORP (IDA) Valuation After Recent Share Price Moves And Growth Expectations

Event context and recent stock performance

IDACORP (IDA) has drawn investor attention after a recent move in its share price. The stock closed at US$140.71 and has shown mixed returns over the past week, month and past 3 months.

See our latest analysis for IDACORP.

Recent moves in IDACORP’s share price sit against a broader backdrop where the stock has a year to date share price return of 10.53%, while the 1 year total shareholder return is 23.14%. This points to firmer long term momentum than the shorter term picture suggests.

If this kind of price action has you thinking about other potential opportunities in essential infrastructure, it could be a good time to review 35 power grid technology and infrastructure stocks

With IDACORP’s recent share price swings, solid 1 year and multi year returns, and its current discount to the average analyst price target, the key question is whether the stock is still undervalued or if the market is already pricing in future growth.

Most Popular Narrative: 7.7% Undervalued

IDACORP’s most followed narrative places fair value at $152.44 per share, above the last close of $140.71. This sets up a modest undervaluation story built on long run electricity demand and regulated returns.

Robust customer and population growth in IDACORP's service area, combined with significant new large scale industrial investments (e.g., Micron fabs, data centers), suggests sustained above average electricity demand well into the 2030s, supporting long term revenue growth.

Read the complete narrative.

Curious how this demand story becomes a higher fair value estimate? The narrative leans heavily on projected revenue expansion, rising margins, and a richer future earnings multiple that utilities do not always enjoy.

Result: Fair Value of $152.44 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this growth story still leans on hydro, which is sensitive to weather, and on regulators approving large capital plans, factors that could both pressure returns if outcomes disappoint.

Find out about the key risks to this IDACORP narrative.

Another View: Earnings Multiples Send a Different Signal

While the analyst narrative points to a fair value of $152.44, IDACORP’s current P/E of 23.5x is above both the US Electric Utilities average of 20.9x and an estimated fair ratio of 21.4x. That gap suggests the stock may already carry a valuation premium, so consider how comfortable you are paying that valuation.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Given the mixed messages on value and sentiment so far, it makes sense to review the data yourself, weigh the upside against the concerns, and decide how you feel about its balance of 2 key rewards and 3 important warning signs.

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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.

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