Huaneng Power International generates and sells electricity and heat to the regional or provincial grid companies in China and Singapore. The company was founded in 1994 and is based in Beijing, China.
HNP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Huaneng Power International Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Huaneng Power International Inc ranked in the 10th 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 Huaneng Power International Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.02 years, is -0.14% -- higher than just 11.72% of stocks in our DCF forecasting set.
Relative to other stocks in its sector (Utilities), Huaneng Power International Inc has a reliance on debt greater than merely 22.36% 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 HNP, try NWE, ENIA, PEG, AQN, and EVRG.
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