AES Relative Valuation
AES's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AES is overvalued; if below, it's undervalued.
Historical Valuation
AES Corp (AES) is now in the Undervalued zone, suggesting that its current forward PE ratio of 5.93 is considered Undervalued compared with the five-year average of 11.27. The fair price of AES Corp (AES) is between 29.41 to 44.64 according to relative valuation methord. Compared to the current price of 14.13 USD , AES Corp is Undervalued By 51.95%.
Relative Value
Fair Zone
29.41-44.64
Current Price：14.13
51.95%
Undervalued
5.93
PE
1Y
3Y
5Y
Trailing
Forward
16.10
EV/EBITDA
AES Corp. (AES) has a current EV/EBITDA of 16.10. The 5-year average EV/EBITDA is 12.20. The thresholds are as follows: Strongly Undervalued below 8.37, Undervalued between 8.37 and 10.29, Fairly Valued between 14.11 and 10.29, Overvalued between 14.11 and 16.03, and Strongly Overvalued above 16.03. The current Forward EV/EBITDA of 16.10 falls within the Strongly Overvalued range.
22.93
EV/EBIT
AES Corp. (AES) has a current EV/EBIT of 22.93. The 5-year average EV/EBIT is 17.97. The thresholds are as follows: Strongly Undervalued below 12.36, Undervalued between 12.36 and 15.17, Fairly Valued between 20.78 and 15.17, Overvalued between 20.78 and 23.58, and Strongly Overvalued above 23.58. The current Forward EV/EBIT of 22.93 falls within the Overvalued range.
14.13
PS
AES Corp. (AES) has a current PS of 14.13. The 5-year average PS is 1.26. The thresholds are as follows: Strongly Undervalued below -1.04, Undervalued between -1.04 and 0.11, Fairly Valued between 2.41 and 0.11, Overvalued between 2.41 and 3.56, and Strongly Overvalued above 3.56. The current Forward PS of 14.13 falls within the Strongly Overvalued range.
3.22
P/OCF
AES Corp. (AES) has a current P/OCF of 3.22. The 5-year average P/OCF is 5.00. The thresholds are as follows: Strongly Undervalued below 1.54, Undervalued between 1.54 and 3.27, Fairly Valued between 6.72 and 3.27, Overvalued between 6.72 and 8.45, and Strongly Overvalued above 8.45. The current Forward P/OCF of 3.22 falls within the Undervalued range.
8.03
P/FCF
AES Corp. (AES) has a current P/FCF of 8.03. The 5-year average P/FCF is 3.35. The thresholds are as follows: Strongly Undervalued below -42.56, Undervalued between -42.56 and -19.61, Fairly Valued between 26.30 and -19.61, Overvalued between 26.30 and 49.26, and Strongly Overvalued above 49.26. The current Forward P/FCF of 8.03 falls within the Historic Trend Line -Fairly Valued range.
AES Corp (AES) has a current Price-to-Book (P/B) ratio of 2.60. Compared to its 3-year average P/B ratio of 5.43 , the current P/B ratio is approximately -52.04% higher. Relative to its 5-year average P/B ratio of 6.10, the current P/B ratio is about -57.29% higher. AES Corp (AES) has a Forward Free Cash Flow (FCF) yield of approximately -0.22%. Compared to its 3-year average FCF yield of -35.49%, the current FCF yield is approximately -99.38% lower. Relative to its 5-year average FCF yield of -20.94% , the current FCF yield is about -98.95% lower.
2.60
P/B
Median3y
5.43
Median5y
6.10
-0.22
FCF Yield
Median3y
-35.49
Median5y
-20.94
Competitors Valuation Multiple
The average P/S ratio for AES's competitors is 56.90, providing a benchmark for relative valuation. AES Corp Corp (AES) exhibits a P/S ratio of 14.13, which is -75.17% above the industry average. Given its robust revenue growth of 1.89%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AES increased by 13.24% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.60 to 16.53.
The secondary factor is the Revenue Growth, contributed 1.89%to the performance.
Overall, the performance of AES in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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