Edison Trades Cheaper Than Eversource, With Much Heavier Debt

Edison International traded at a much lower earnings multiple than Eversource in the source comparison, but the discount comes with a heavier balance sheet and weaker cash generation. Both utilities target 5% to 7% annual earnings-per-share growth through 2030, so the difference is less about stated growth and more about risk.

Edison maintained 2026 adjusted EPS guidance of $5.90 to $6.20 after second-quarter adjusted earnings rose to $1.54 a share from $0.97. Eversource also maintained guidance of $4.57 to $4.72 in recurring EPS, but that range already reflects the lower transmission return imposed by FERC and the sale of Aquarion Water.

The source put Edison's total debt at $43.5 billion on June 30 and at 204% of its market value, compared with 121% for Eversource. Edison also generated negative $389 million of free cash flow over the 12 months through June, while Eversource generated positive $237 million over a period ending one quarter earlier.

Those cash-flow windows are not perfectly aligned, and regulated utilities often spend more on infrastructure than current operating cash flow can cover. The figures still show why Edison's low valuation cannot be read as a free bargain. Financing costs, wildfire liabilities, regulation and capital needs influence the multiple.

Edison had the faster recent revenue growth and a lower price-to-sales ratio. Eversource had lower debt relative to market value and a stronger three-year average operating margin in the source comparison. Neither set of metrics proves superior shareholder returns.

The next evidence is each company's financing plan, regulatory outcomes and capital-spending recovery. Edison offers more apparent valuation upside if guidance holds and liabilities remain contained. Eversource offers the steadier balance-sheet profile, but its transmission return limits near-term earnings.