AES Corporation owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries in the United States, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia. The company was founded in 1981 and is based in Arlington, Virginia.
AES Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Aes Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Aes Corp ranked in the 39th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Aes Corp, consider:
The company's compound free cash flow growth rate over the past 3.81 years comes in at 0.7%; that's greater than 87.87% of US stocks we're applying DCF forecasting to.
The company has produced more trailing twelve month cash flow than merely 20.1% of its sector Utilities.
31% of the company's capital comes from equity, which is greater than only 19.21% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Utilities that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AES, try EE, CWEN, UGI, TERP, and EVRG.