Itron stock could be 28.4% undervalued relative to its intrinsic value, according to a Discounted Cash Flow analysis, following news of a smart water meter upgrade with Watercare in Auckland. The DCF model, using a latest twelve-month free cash flow of about $392.8 million and assuming continued growth, estimates an intrinsic value of about $121 per share, implying a 28.4% discount to the current market price. On an earnings basis, Itron trades at a P/E of about 13.3x, well below the Electronic industry average of roughly 32.1x and a tailored fair P/E of 21.2x, further suggesting undervaluation. The long-term contracted nature of the Auckland project supports projected cash flows, though execution and timing risks remain. The stock has declined 35.5% over the past year, yet screens as undervalued on all six valuation checks.
Itron IncDCF analysis suggests 28% undervaluation and P/E below industry average, indicating stock is undervalued.