Is It Too Late To Consider Powell Industries (POWL) After Its Multi‑Year Share Price Surge?

Simply Wall St.14:41

If you are wondering whether Powell Industries at around US$421.85 is still offering value after a strong run, this article walks through what the current price might be implying. The stock has posted...

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The stock has posted...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nasdaq-powl/powell-industries/news/is-it-too-late-to-consider-powell-industries-powl-after-its\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Too Late To Consider Powell Industries (POWL) After Its Multi‑Year Share Price Surge?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Too Late To Consider Powell Industries (POWL) After Its Multi‑Year Share Price Surge?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-22 14:41 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nasdaq-powl/powell-industries/news/is-it-too-late-to-consider-powell-industries-powl-after-its><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Powell Industries at around US$421.85 is still offering value after a strong run, this article walks through what the current price might be implying. The stock has posted...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nasdaq-powl/powell-industries/news/is-it-too-late-to-consider-powell-industries-powl-after-its\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nasdaq-powl/powell-industries/news/is-it-too-late-to-consider-powell-industries-powl-after-its","article_id":"2605656404","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3051000-choice2-main-header/1585186647175"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nasdaq-powl/powell-industries/news/is-it-too-late-to-consider-powell-industries-powl-after-its","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2605656404","pubTimestamp":1769064063,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Powell Industries at around US$421.85 is still offering value after a strong run, this article walks through what the current price might be implying.\nThe stock has posted a 5.1% return over the last 7 days, 25.4% over the last 30 days, 19.7% year to date and 36.1% over the last year, with a very large return over 3 and 5 years that is well above 7x in both periods.\nRecent coverage around Powell Industries has focused on its share price strength and the attention...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","BK4588":"碎股","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","TLTW":"iShares 20+ Year Treasury Bond Buywrite Strategy ETF","TMF":"3倍做多20年期以上国债ETF-Direxion","BK4096":"电气部件与设备"},"translate_title":"鲍威尔工业公司（POWL）股价多年飙升后，现在考虑该公司是否为时已晚？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"US6M.BOND":1.5,"US5Y.BOND":1.5,"US2Y.BOND":1.5,"US3Y.BOND":1.5,"TLTW":0.6,"TMF":0.6,"US7Y.BOND":1.5,"US12M.BOND":1.5,"US10Y.BOND":1.5,"DCF":1,"US30Y.BOND":1.5},"content_text":"If you are wondering whether Powell Industries at around US$421.85 is still offering value after a strong run, this article walks through what the current price might be implying. The stock has posted a 5.1% return over the last 7 days, 25.4% over the last 30 days, 19.7% year to date and 36.1% over the last year, with a very large return over 3 and 5 years that is well above 7x in both periods. Recent coverage around Powell Industries has focused on its share price strength and the attention that comes when a stock has very large multi year returns, which often raises questions about whether expectations are now too high. That context makes it especially important to separate long term enthusiasm from what the current price may or may not be justifying. Powell Industries currently has a valuation score of 2 out of 6, so we will walk through what different valuation approaches say about that score and then finish with a more intuitive way to think about value that many investors find easier to use.  Powell Industries scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Powell Industries Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and discounting them back to a present value. For Powell Industries, the model used is a 2 Stage Free Cash Flow to Equity approach, based on Free Cash Flow to equity holders in $. The latest twelve month Free Cash Flow is about $155.0 million. Analysts provide an estimate of $116.8 million for 2026, and further projections through 2035 are extrapolated from these inputs by Simply Wall St, with each future year discounted back to today. Adding up those discounted cash flows, plus a terminal value, gives an estimated intrinsic value of about $130.42 per share. Compared with the recent share price around $421.85, the DCF output suggests the stock is trading at a very large premium, with an implied 223.5% overvaluation relative to this cash flow based estimate. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests Powell Industries may be overvalued by 223.5%. Discover 881 undervalued stocks or create your own screener to find better value opportunities. POWL Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Powell Industries. Approach 2: Powell Industries Price vs Earnings For profitable companies, the P/E ratio is a useful way to relate what you are paying for each share to the earnings that support that price. It also gives a quick sense of how much optimism or caution is currently built into the stock. In general, higher growth expectations and lower perceived risk can justify a higher P/E ratio, while slower growth and higher risk usually point to a lower, more conservative P/E. So the question is not whether a P/E is high or low in isolation, but whether it lines up with what the business and its risks might justify. Powell Industries currently trades on a P/E of 28.33x. That sits below the Electrical industry average of 32.85x, and also below the peer group average of 39.00x. Simply Wall St’s proprietary “Fair Ratio” for Powell Industries is 23.72x, which reflects factors like its earnings growth profile, industry, profit margin, market cap and specific risks. This Fair Ratio goes further than simple peer or industry comparisons because it attempts to tailor an appropriate multiple to the company’s own characteristics rather than assuming that similar companies always deserve similar P/Es. Compared with this Fair Ratio of 23.72x, the current P/E of 28.33x looks higher, which points to Powell Industries trading above that fair value estimate. Result: OVERVALUED NasdaqGS:POWL P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1447 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Powell Industries Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your own story about Powell Industries, tied directly to numbers like your assumed fair value and your expectations for future revenue, earnings and margins. A Narrative on Simply Wall St connects three pieces in one place: the business story you believe, the financial forecast that follows from that story, and the fair value that those forecasts imply, so you can quickly see how your view compares with the current price. You can build and explore Narratives on the Community page, where millions of investors share their views, and the fair values in those Narratives update automatically when new information such as earnings reports or news is added to the platform. With Powell Industries, for example, one investor might build a Narrative that supports a much higher fair value per share than today’s price, while another might set a much lower fair value based on more cautious assumptions. Seeing that range can help you decide whether you feel closer to the optimistic or cautious camp before you consider any action. Do you think there's more to the story for Powell Industries? Head over to our Community to see what others are saying! NasdaqGS:POWL 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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