Algonquin Power & Utilities Corp. Common Shares (AQN) Company Bio
Algonquin Power & Utilities Corp., through its subsidiaries, engages in the generation, distribution, and transmission utility assets in North America. The company generates and sells electrical energy through a portfolio of non-regulated renewable and clean energy power generation facilities. The company was founded in 1996 and is headquartered in Oakville, Canada.
AQN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Algonquin Power & Utilities Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Algonquin Power & Utilities Corp ranked in the 3th 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. The most interesting components of our discounted cash flow analysis for Algonquin Power & Utilities Corp ended up being:
The company's compound free cash flow growth rate over the past 3.96 years comes in at -0.17%; that's greater than merely 9.64% of US stocks we're applying DCF forecasting to.
Algonquin Power & Utilities Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 14.16% of tickers in our DCF set.
Relative to other stocks in its sector (Utilities), Algonquin Power & Utilities Corp has a reliance on debt greater than only 23.23% of them.
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 AQN, try ENIA, PEG, NWE, HNP, and EVRG.
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