Northwestern Corporation provides electricity and natural gas to residential, commercial, and industrial customers in Montana, South Dakota, and Nebraska. The company was founded in 1923 and is based in Sioux Falls, South Dakota.
NWE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Northwestern Corp. To summarize, we found that Northwestern Corp ranked in the 9th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 92%. In terms of the factors that were most noteworthy in this DCF analysis for NWE, they are:
Northwestern Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 22.13% of tickers in our DCF set.
As a business, Northwestern Corp experienced a tax rate of about 0% over the past twelve months; relative to its sector (Utilities), this tax rate is higher than only 0% of stocks generating 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 NWE, try HNP, ENIA, PEG, AQN, and EVRG.
At this time, I would like to turn the conference over to NorthWestern's Investor Relations Officer, Travis Meyer. Joining us on the call today are Bob Rowe, President and Chief Executive Officer; Brian Bird, Chief Financial Officer, and we have several other members of the management team in the room with us to address your questions if needed. Before I turn the call over for us to begin, please note this company's press release, this presentation, comments by presenters and responses to your questions may contain forward-looking statements and non-GAAP financial information.
NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) today announced that it will host an investor conference call and webcast on Wednesday, July 29, 2020, at 3:00 p.m. Eastern time to review its financial results for the quarter ending June 30, 2020. The Company also plans to issue a news release detailing its second quarter financial results the evening of July 28, 2020, after the NYSE close.