AQN Valuation

Algonquin Power & Utilities Corp

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5.930

+0.02(0.338%)1D

Overview
Forecast
Valuation
Earnings

AQN Relative Valuation

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

Historical Valuation

Algonquin Power & Utilities Corp (AQN) is now in the Fair zone, suggesting that its current forward PE ratio of 21.43 is considered Fairly compared with the five-year average of 17.20. The fair price of Algonquin Power & Utilities Corp (AQN) is between 4.92 to 6.60 according to relative valuation methord.

Relative Value

Fair Zone

4.92-6.60

Current Price：5.93

Fair

21.43

Trailing

Forward

11.76

EV/EBITDA

Algonquin Power & Utilities Corp. (AQN) has a current EV/EBITDA of 11.76. The 5-year average EV/EBITDA is 12.63. The thresholds are as follows: Strongly Undervalued below 10.53, Undervalued between 10.53 and 11.58, Fairly Valued between 13.68 and 11.58, Overvalued between 13.68 and 14.73, and Strongly Overvalued above 14.73. The current Forward EV/EBITDA of 11.76 falls within the Historic Trend Line -Fairly Valued range.

21.83

EV/EBIT

Algonquin Power & Utilities Corp. (AQN) has a current EV/EBIT of 21.83. The 5-year average EV/EBIT is 24.49. The thresholds are as follows: Strongly Undervalued below 17.85, Undervalued between 17.85 and 21.17, Fairly Valued between 27.80 and 21.17, Overvalued between 27.80 and 31.12, and Strongly Overvalued above 31.12. The current Forward EV/EBIT of 21.83 falls within the Historic Trend Line -Fairly Valued range.

1.88

Algonquin Power & Utilities Corp. (AQN) has a current PS of 1.88. The 5-year average PS is 2.67. The thresholds are as follows: Strongly Undervalued below 0.35, Undervalued between 0.35 and 1.51, Fairly Valued between 3.82 and 1.51, Overvalued between 3.82 and 4.98, and Strongly Overvalued above 4.98. The current Forward PS of 1.88 falls within the Historic Trend Line -Fairly Valued range.

7.98

P/OCF

Algonquin Power & Utilities Corp. (AQN) has a current P/OCF of 7.98. The 5-year average P/OCF is 10.47. The thresholds are as follows: Strongly Undervalued below -4.98, Undervalued between -4.98 and 2.74, Fairly Valued between 18.19 and 2.74, Overvalued between 18.19 and 25.91, and Strongly Overvalued above 25.91. The current Forward P/OCF of 7.98 falls within the Historic Trend Line -Fairly Valued range.

594.25

P/FCF

Algonquin Power & Utilities Corp. (AQN) has a current P/FCF of 594.25. The 5-year average P/FCF is 50.56. The thresholds are as follows: Strongly Undervalued below -195.04, Undervalued between -195.04 and -72.24, Fairly Valued between 173.36 and -72.24, Overvalued between 173.36 and 296.16, and Strongly Overvalued above 296.16. The current Forward P/FCF of 594.25 falls within the Strongly Overvalued range.

Algonquin Power & Utilities Corp (AQN) has a current Price-to-Book (P/B) ratio of 1.01. Compared to its 3-year average P/B ratio of 0.97 , the current P/B ratio is approximately 4.73% higher. Relative to its 5-year average P/B ratio of 1.33, the current P/B ratio is about -23.75% higher. Algonquin Power & Utilities Corp (AQN) has a Forward Free Cash Flow (FCF) yield of approximately -9.94%. Compared to its 3-year average FCF yield of -8.43%, the current FCF yield is approximately 17.91% lower. Relative to its 5-year average FCF yield of -8.00% , the current FCF yield is about 24.26% lower.

1.01

P/B

Median3y

0.97

Median5y

1.33

-9.94

FCF Yield

Median3y

-8.43

Median5y

-8.00

Competitors Valuation Multiple

The average P/S ratio for AQN's competitors is 2.85, providing a benchmark for relative valuation. Algonquin Power & Utilities Corp Corp (AQN) exhibits a P/S ratio of 1.88, which is -34.26% above the industry average. Given its robust revenue growth of -6.06%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

AQN.N

Algonquin Power & Utilities Corp

Brookfield Renewable Corp

Ormat Technologies Inc

Performance Decomposition

Market capitalization of AQN decreased by 1.50% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.65 to 18.16.

The secondary factor is the Revenue Growth, contributed -6.06%to the performance.

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

-6.06%

737.10M → 692.40M

Revenue Growth

-168.57%

-16.32 → 11.19

Margin Expansion

173.13%

6.65 → 18.16

P/E Change

-1.50%