• Wondering if IDACORP at a recent price of US$144.08 still offers value, or if most of the opportunity has already been priced in.
• The stock has been fairly steady in the short term, with a 0.1% decline over 7 days and a 0.4% decline over 30 days, yet it shows returns of 13.2% year to date and 27.1% over 1 year.
• These returns sit against a backdrop of ongoing attention on regulated utilities, where investors often focus on income visibility, capital plans and regulatory conditions rather than rapid shifts in sentiment. For IDACORP, this context helps explain why the stock can move quietly over weeks, while longer term performance paints a different picture.
• On Simply Wall St's valuation checks, IDACORP currently has a value score of 1 out of 6. This raises questions about how traditional models are treating the stock today and sets up a closer look at several valuation approaches, along with a different way of thinking about value at the end of this article.

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 a stock could be worth today by projecting future dividends, then discounting those payments back into today’s dollars. It is especially relevant for regulated utilities where dividends are a central part of the investment story.

For IDACORP, the model uses a current dividend per share of about US$3.92, a return on equity of 9.37% and a payout ratio of about 60%. Simply Wall St applies a long term dividend growth rate of 3.54%, which is capped from a higher starting point, and an expected growth figure of 3.74%. Together, these inputs are used to estimate how IDACORP’s dividend stream could evolve under stable conditions.

On this basis, the DDM arrives at an estimated intrinsic value of roughly US$110 per share. Against a recent share price of US$144.08, this suggests the stock is about 31.0% above the model’s value, which indicates it is overvalued on this specific dividend framework.

Result: OVERVALUED

Our Dividend Discount Model (DDM) analysis suggests IDACORP may be overvalued by 31.0%. Discover 44 high quality undervalued stocks or create your own screener to find better value opportunities.

Approach 2: IDACORP Price vs Earnings

For profitable companies like IDACORP, the P/E ratio is a straightforward way to see how much you are paying for each dollar of earnings. It is widely used because it connects directly to what the business currently earns, which is especially relevant for established, income focused utilities.

What counts as a “normal” or “fair” P/E depends on how quickly earnings are expected to grow and how risky those earnings are perceived to be. Higher growth or lower perceived risk can justify a higher multiple, while slower growth or higher risk usually points to a lower one.

IDACORP currently trades on a P/E of 24.06x. That sits below the peer average of 26.85x and slightly above the broader Electric Utilities industry average of 21.65x. Simply Wall St also provides a proprietary “Fair Ratio” of 21.54x, which estimates the P/E you might expect for IDACORP after factoring in its earnings growth profile, industry, profit margin, market cap and risk characteristics.

This Fair Ratio can be more informative than a simple comparison with peers or the industry because it is tailored to the company’s own fundamentals rather than broad group averages. Comparing 24.06x with the 21.54x Fair Ratio suggests the stock trades above this model based reference point.

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. Think of a Narrative as your own clear story about IDACORP that connects what you believe about its future revenue, earnings and margins to a financial forecast, a Fair Value and then a simple comparison with the current price. All of this is available within an easy tool on Simply Wall St's Community page that is used by millions of investors, where Narratives update automatically when new information like earnings or news arrives. For example, one investor might build a Narrative that leans into the higher analyst price target of US$166 based on stronger confidence in data center driven load growth, while another might anchor closer to US$121 with a more cautious view on regulatory risk. This gives you a concrete way to see how different assumptions on the same stock lead to different Fair Values and potential investment decisions.

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.