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Position · Emerging Growth

Vistra Corp (VST)

0.97% of book · Avg. cost $134.71 · Return +10.01%

Compare vs. competitors: Talen Energy vs. Vistra vs. Constellation Energy →

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Download full 3-statement model (.xlsx) →

Thesis StatementVistra's roughly 44GW generation fleet sits at the center of the same AI-driven power-demand thesis as Talen, now backed by an Investment Grade credit-rating upgrade.

VST Vistra Corp
AEA Institutional Tear Sheet
0.97% of book · Avg. cost $134.71 · Return +10.01%

Core Thesis

Vistra is one of the largest power producers and retail electricity providers in the US, with roughly 44GW of generation across gas, nuclear, coal, solar, and storage, and provides roughly a third of all electricity consumed in Texas — scale and a diversified...

Financial Metrics

  • Market Cap$50.93B
  • P/E (TTM)25.65
  • EPS (TTM)$5.97
  • Div. Yield0.58%
  • Price$151.05

Bear Case

New generation capacity comes online faster than expected and eases the current tightness in power markets, a broader pullback in AI-capex sentiment hits both Vistra and TLN together given how correlated the two positions are, and Texas-specific regulatory or...

Investment Thesis

The Thesis
Vistra is one of the largest power producers and retail electricity providers in the US, with roughly 44GW of generation across gas, nuclear, coal, solar, and storage, and provides roughly a third of all electricity consumed in Texas — scale and a diversified generation mix that make it a direct way to own rising power demand.
The Catalyst
Vistra shares the same power/AI-demand driver as TLN — data centers need a lot more electricity, and Vistra's scale and Texas retail footprint position it to capture that demand directly through existing generation capacity.
The Risk
New generation capacity could come online faster than expected and ease current power-market tightness, and a pullback in AI-capex sentiment would likely hit both Vistra and my correlated TLN position together, compounded by Texas-specific grid risk.
The Connection
Core to my power/AI-driven electricity-demand theme alongside TLN and VRT — correlated closely enough with TLN that I treat the two as a single thematic bet for risk purposes.

Pre-Mortem Thesis Invalidation Parameters

Codified in advance, before any of these have happened, so a future decision to hold or exit isn't rationalized in the moment. If a condition below is met, the thesis as written is invalidated and the position gets re-underwritten from scratch — not automatically sold, but automatically questioned.

Metric / EventAutomatic Review Trigger
Wholesale Power Prices (ERCOT)Soften for 2 consecutive quarters from currently elevated levels.
Texas Grid RiskA grid reliability event forces regulatory intervention that caps merchant power pricing.
Market cap$50.93B
P/E ratio (TTM)25.65
EPS (TTM)$5.97
Dividend yield0.58%
Shares outstandingN/A — not provided
SectorElectric Services
EBITDAEarnings Before Interest, Taxes, Depreciation, and Amortization — a measure of operating profitability before financing and accounting decisions. EV/EBITDA compares a company's full value (including debt) to this figure, often used to compare companies with different capital structures.EV/EBITDA 10.80x; FY26 Adj. EBITDA guidance $6.8–7.6B
PEG ratioPrice/Earnings-to-Growth: the P/E ratio divided by expected earnings growth. Below 1.0 is often read as cheap relative to growth; above suggests the market is pricing in a lot of future growth already. Different providers use different growth-rate assumptions, so figures vary by source.0.61
Capex$2.87B (TTM)

Market cap, P/E, EPS, and dividend yield via Blossom. Shares outstanding not available from a source I trust for this entry — left blank rather than estimated. EBITDA, PEG ratio, and capex sourced from public filings and financial-data aggregators (GuruFocus, StockAnalysis, company earnings releases). PEG ratio is sourced primarily from GuruFocus where available; different providers calculate PEG using different growth-rate assumptions, so figures from other sources for the same stock can vary by several multiples — a known limitation of PEG as a metric, not unique to any name here.

Valuation Logic

25.65x trailing earnings is a reasonable multiple for a utility-like power generator; unlike Talen, Vistra's earnings base is large and stable enough that a traditional P/E is a meaningful anchor here.

DCF Sensitivity Tool

A simplified single-stage model for exploring how WACC and terminal growth assumptions move an implied share price — not AEA's own valuation of this stock. Adjust the base cash-flow figure to run your own numbers.

Implied Share Price
Formula: Base FCF/Share × (1 + terminal growth) ÷ (WACC − terminal growth). A real DCF would forecast several years of cash flow explicitly rather than capitalize a single base year in perpetuity — this tool is a simplified illustration of how sensitive that kind of valuation is to two assumptions, not a price target.
$132.66 (52-wk low)$151.05$219.82 (52-wk high)

About the business

Vistra is one of the largest power producers and retail electricity providers in the US, with roughly 44GW of generation across gas, nuclear, coal, solar, and storage. It serves about 5 million retail customers and provides roughly a third of all electricity consumed in Texas. The company emerged from the Energy Future Holdings bankruptcy in 2016.

Why it's sized this way

This is the same power/AI-demand theme as TLN — data centers need a lot more electricity, and Vistra's scale and Texas retail footprint make it a direct way to own that. I'm intentionally keeping this position smaller and treating it as correlated with TLN rather than as fully independent diversification: a move in wholesale power pricing or a shift in AI-capex sentiment would likely hit both positions together.

Risk/Reward Profile

Bull CaseBear Case
Power demand from data centers and broader electrification keeps growing faster than new generation supply, Vistra's diverse generation mix (including nuclear baseload) lets it capture higher wholesale prices, and its large retail base provides a stable, less-volatile earnings floor underneath the generation business.New generation capacity comes online faster than expected and eases the current tightness in power markets, a broader pullback in AI-capex sentiment hits both Vistra and TLN together given how correlated the two positions are, and Texas-specific regulatory or weather risk (a state with its own grid) adds a layer of concentration risk.

Base case: Power demand grows steadily, wholesale prices stay firm without spiking further, and Vistra's earnings track that steady growth without a dramatic re-rating.

Download this position's data

Fundamentals, scenario matrix, and risk/reward table — exported exactly as published on this page, no reformatting.

Macro Stress-Test: How VST Fits In

The book-level stress test runs four scenarios against the whole portfolio. Here is exactly where VST sits in each one — named directly, or not addressed at all. Nothing below is invented for this page; it’s the same book-level analysis, filtered to this position.

Current positioning, no shock assumed

VST is 1.04% of the book, in the Power & Utilities sector. See the full base-case positioning on Holdings.

Where this position sits in the book’s least-defended scenario

Not individually named in the book-level inflation analysis. VST contributes to the book’s overall growth-multiple exposure only through its Power & Utilities sector weight — see the full scenario on Holdings for what is and isn’t defended.

Not individually assessed

Where this position sits in the book’s best-defended scenario

VST is a liquid, publicly traded security like every other position in the book — no private equity, no illiquid credit, no lockups. A genuinely broad market drawdown would still hurt (the book’s beta is 1.79), but this position doesn’t face the structural exit friction an illiquid holding would.

Liquid, publicly traded

Where this position sits in the book’s largest concentrated risk

Not part of the semiconductor sleeve this scenario is built around. VST sits in Power & Utilities, so a Taiwan-centered supply disruption would hit this position only indirectly, if at all, through broader market effects.

Outside the named semiconductor exposure