Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include approximately 5,814 pole miles of overhead lines and approximately 74 miles of underground lines; and distribution facilities comprise approximately 11,258 miles of overhead lines and approximately 22,821 miles of underground primary cable, as well as owns and maintains 475 transmission and distribution substations. The company also owns or leases approximately 6,323 megawatts of regulated generation capacity. It serves approximately 1.3 million customers. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	4,324.4	4,696	5,124.9	5,311.3	5,513	5,886.4	5,886.4	5,886.4
Revenue % Chg.	13.7%	8.6%	9.1%
EBIT	830.4	865.3	1,060.9	1,061.9	1,108.1	1,333.2	1,333.2	1,333.2
EBIT Margin	19.2%	18.4%	20.7%
Tax Rate	13%	12.9%	15%
NOPAT	722.5	753.6	901.7	913.7	968.5	1,149.9	1,149.9	1,149.9
NOPAT Margin	16.7%	16%	17.6%	17.2%	17.6%	19.5%	19.5%	19.5%
D&A	817.8	854.1	956.2	935.6	1,005.2	1,078.1	1,078.1	1,078.1
D&A / Revenue	18.9%	18.2%	18.7%
Capex	-1,735.5	-1,889.9	-2,297.5	-2,400	-2,600	-2,672.5	-2,672.5	-2,672.5
Capex / Revenue	-40.1%	-40.2%	-44.8%
Chg. NWC	-13.6	-172.4	-80.7	-98.4	-102.2	-109.1	-109.1	-109.1
Chg. NWC / Revenue	-0.3%	-3.7%	-1.6%
Unlevered FCF (UFCF)	-208.8	-454.6	-520.3	-649.1	-728.4	-553.6	-553.6	-553.6
UFCF % Chg.	-42.8%	117.7%	14.5%	24.7%	12.2%	-24%	—	—
PV of UFCF	—	—	—	-612.5	-648.7	-465.3	-439.1	-414.4
Sum of PV of UFCF	—	—	—	-612.5	-1,261.3	-1,726.5	-2,165.6	-2,580

Cost of Debt
Tax Rate
After Tax Cost of Debt	3.4%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.6%
Total Debt	11,048.3
Market Cap	10,597.4
Total Capital	21,645.7
Debt Weighting	51%
Equity Weighting	49%
WACC	6%

Exit Multiple EV/FCF
Terminal Value	24,856.2
PV of Terminal Value	17,559
Cumulative PV of UFCF	-2,580
Net Debt	14,215.7
Equity Value	763.3
Shares Outstanding	119.7
Implied Share Price	6.4
Current Share Price	88.5
Implied Upside / (Downside)	-92.8%