TerraForm Power owns and operates solar and wind generation assets serving utility, commercial, and residential customers. The company has solar and wind projects located in the United States, Canada, the United Kingdom, and Chile. The company was founded in 2014 and is based in Bethesda, Maryland.
TERP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for TerraForm Power Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that TerraForm Power Inc ranked in the 29th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for TerraForm Power Inc ended up being:
38% of the company's capital comes from equity, which is greater than just 19% of stocks in our cash flow based forecasting set.
TerraForm Power Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.47. This coverage rate is greater than that of merely 24.77% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 14. This value is greater than 97.11% 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 TERP, try EVRG, UGI, CWCO, CWEN, and EE.
BALA CYNWYD, PA / ACCESSWIRE / June 5, 2020 / Brodsky & Smith, LLC reminds investors of investigations it is conducting regarding the following companies for possible breaches of fiduciary duty and other ...
Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of TerraForm Power, Inc. ("TerraForm Power" or the "Company") (TERP) breached their fiduciary duties in connection with the proposed sale of the Company to Brookfield Renewable Partners ("Brookfield Renewable") (BEP). On March 16, 2020, TerraForm Power announced that they had entered into a definitive merger agreement for Brookfield Renewable to acquire all of the outstanding shares of Class A common stock of TerraForm Power, other than the approximately 62% currently owned by Brookfield Renewable and its affiliates.