Atlantic Power Corporation Ordinary Shares (Canada) (AT) Company Bio
Atlantic Power Corporation owns and operates a fleet of power generation assets in the United States and Canada. As of December 31, 2014, its power generation projects in operation had an aggregate gross electric generation capacity of approximately 2,945 megawatts consisting of interests in 28 operational power generation projects across 11 states in the United States and 2 provinces in Canada. The company was founded in 2004 and is based in Boston, Massachusetts.
AT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Atlantic Power Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Atlantic Power Corp ranked in the 76th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 400%. As for the metrics that stood out in our discounted cash flow analysis of Atlantic Power Corp, consider:
27% of the company's capital comes from equity, which is greater than only 15.23% of stocks in our cash flow based forecasting set.
Atlantic Power Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.25. This coverage rate is greater than that of merely 19.14% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 15. This value is greater than 97.67% stocks in the Utilities sector that generate free cash flow.
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 AT, try CIG, NRG, BIP, NEP, and SBS.