ALE Valuation

ALLETE Inc

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65.870

-0.03(-0.046%)1D

Overview
Forecast
Valuation
Earnings

ALE Relative Valuation

ALE'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, ALE is overvalued; if below, it's undervalued.

Historical Valuation

ALLETE Inc (ALE) is now in the Fair zone, suggesting that its current forward PE ratio of 17.04 is considered Fairly compared with the five-year average of 16.70. The fair price of ALLETE Inc (ALE) is between 59.67 to 72.09 according to relative valuation methord.

Relative Value

Fair Zone

59.67-72.09

Current Price：65.97

Fair

17.05

Trailing

Forward

12.43

EV/EBITDA

ALLETE Inc. (ALE) has a current EV/EBITDA of 12.43. The 5-year average EV/EBITDA is 12.43. The thresholds are as follows: Strongly Undervalued below 10.51, Undervalued between 10.51 and 11.47, Fairly Valued between 13.39 and 11.47, Overvalued between 13.39 and 14.35, and Strongly Overvalued above 14.35. The current Forward EV/EBITDA of 12.43 falls within the Historic Trend Line -Fairly Valued range.

29.39

EV/EBIT

ALLETE Inc. (ALE) has a current EV/EBIT of 29.39. The 5-year average EV/EBIT is 25.61. The thresholds are as follows: Strongly Undervalued below 17.79, Undervalued between 17.79 and 21.70, Fairly Valued between 29.52 and 21.70, Overvalued between 29.52 and 33.43, and Strongly Overvalued above 33.43. The current Forward EV/EBIT of 29.39 falls within the Historic Trend Line -Fairly Valued range.

2.36

ALLETE Inc. (ALE) has a current PS of 2.36. The 5-year average PS is 2.28. The thresholds are as follows: Strongly Undervalued below 1.71, Undervalued between 1.71 and 1.99, Fairly Valued between 2.56 and 1.99, Overvalued between 2.56 and 2.84, and Strongly Overvalued above 2.84. The current Forward PS of 2.36 falls within the Historic Trend Line -Fairly Valued range.

7.62

P/OCF

ALLETE Inc. (ALE) has a current P/OCF of 7.62. The 5-year average P/OCF is 8.12. The thresholds are as follows: Strongly Undervalued below 5.80, Undervalued between 5.80 and 6.96, Fairly Valued between 9.28 and 6.96, Overvalued between 9.28 and 10.44, and Strongly Overvalued above 10.44. The current Forward P/OCF of 7.62 falls within the Historic Trend Line -Fairly Valued range.

-492.66

P/FCF

ALLETE Inc. (ALE) has a current P/FCF of -492.66. The 5-year average P/FCF is 14.74. The thresholds are as follows: Strongly Undervalued below -237.93, Undervalued between -237.93 and -111.60, Fairly Valued between 141.07 and -111.60, Overvalued between 141.07 and 267.40, and Strongly Overvalued above 267.40. The current Forward P/FCF of -492.66 falls within the Strongly Undervalued range.

ALLETE Inc (ALE) has a current Price-to-Book (P/B) ratio of 1.33. Compared to its 3-year average P/B ratio of 1.27 , the current P/B ratio is approximately 4.79% higher. Relative to its 5-year average P/B ratio of 1.33, the current P/B ratio is about 0.40% higher. ALLETE Inc (ALE) has a Forward Free Cash Flow (FCF) yield of approximately 1.53%. Compared to its 3-year average FCF yield of 4.08%, the current FCF yield is approximately -62.49% lower. Relative to its 5-year average FCF yield of -1.67% , the current FCF yield is about -191.61% lower.

1.33

P/B

Median3y

1.27

Median5y

1.33

1.53

FCF Yield

Median3y

4.08

Median5y

-1.67

Competitors Valuation Multiple

The average P/S ratio for ALE's competitors is 1.10, providing a benchmark for relative valuation. ALLETE Inc Corp (ALE) exhibits a P/S ratio of 2.36, which is 115.13% above the industry average. Given its robust revenue growth of -0.77%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Renew Energy Global PLC

XPLR Infrastructure LP

Maxeon Solar Technologies Ltd

0.08

-78.66%

77.39M

Performance Decomposition

Market capitalization of ALE increased by 5.57% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.48 to 20.65.

The secondary factor is the Revenue Growth, contributed -0.77%to the performance.

Overall, the performance of ALE in the past 1 year is driven by P/E Change. Which is more unsustainable.

-0.77%

403.30M → 400.20M

Revenue Growth

-5.45%

9.17 → 8.67

Margin Expansion

11.79%

18.48 → 20.65

P/E Change

5.57%