The estimated intrinsic value of Portland General Electric Company (POR) using a Dividend Discount Model (DDM) is $70.00 (based on the recommended DDM method), compared to the current stock price of $52.70. This suggests the stock may be undervalued by 32.8% relative to its intrinsic value.

For utility companies, which are valued primarily for their stable and predictable dividend streams, SharesGrow uses a Dividend Discount Model (DDM): Intrinsic Value = Annual Dividend ÷ (Cost of Equity − Dividend Growth Rate). This model assumes a long-term dividend growth rate of 4% — consistent with the historical average for regulated utilities — and uses a minimum 7% cost of equity. The DDM is the preferred valuation method for income-oriented stocks with stable payout histories.

The valuation uses a CAPM-derived discount rate of 4.54% (CAPM-derived from beta of 0.64). For comparison, the standard 20-year DCF model produces: Operating Cash Flow (OCF): $188.22 | Net Income (NI): $16.10.

• Operating Cash Flow (OCF) exceeds Net Income (NI) significantly. This is common with companies that have large Stock-Based Compensation (SBC) or depreciation charges. Our Discounted Cash Flow (DCF) model may be using a cash flow base that is higher than earnings, but the method choice matters — check the recommended method below.