CWEN Valuation

Clearway Energy Inc

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29.690

-0.08(-0.269%)1D

Overview
Forecast
Valuation
Earnings

CWEN Relative Valuation

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

Historical Valuation

Clearway Energy Inc (CWEN) is now in the Fair zone, suggesting that its current forward PS ratio of 2.29 is considered Fairly compared with the five-year average of 25.42. The fair price of Clearway Energy Inc (CWEN) is between 27.91 to 35.71 according to relative valuation methord.

Relative Value

Fair Zone

27.91-35.71

Current Price：29.69

Fair

27.13

Trailing

Forward

12.94

EV/EBITDA

Clearway Energy Inc. (CWEN) has a current EV/EBITDA of 12.94. The 5-year average EV/EBITDA is 11.00. The thresholds are as follows: Strongly Undervalued below 9.27, Undervalued between 9.27 and 10.13, Fairly Valued between 11.86 and 10.13, Overvalued between 11.86 and 12.73, and Strongly Overvalued above 12.73. The current Forward EV/EBITDA of 12.94 falls within the Strongly Overvalued range.

53.88

EV/EBIT

Clearway Energy Inc. (CWEN) has a current EV/EBIT of 53.88. The 5-year average EV/EBIT is 39.37. The thresholds are as follows: Strongly Undervalued below 1.16, Undervalued between 1.16 and 20.26, Fairly Valued between 58.47 and 20.26, Overvalued between 58.47 and 77.57, and Strongly Overvalued above 77.57. The current Forward EV/EBIT of 53.88 falls within the Historic Trend Line -Fairly Valued range.

2.29

Clearway Energy Inc. (CWEN) has a current PS of 2.29. The 5-year average PS is 2.43. The thresholds are as follows: Strongly Undervalued below 1.67, Undervalued between 1.67 and 2.05, Fairly Valued between 2.80 and 2.05, Overvalued between 2.80 and 3.18, and Strongly Overvalued above 3.18. The current Forward PS of 2.29 falls within the Historic Trend Line -Fairly Valued range.

3.64

P/OCF

Clearway Energy Inc. (CWEN) has a current P/OCF of 3.64. The 5-year average P/OCF is 4.68. The thresholds are as follows: Strongly Undervalued below 2.55, Undervalued between 2.55 and 3.62, Fairly Valued between 5.75 and 3.62, Overvalued between 5.75 and 6.81, and Strongly Overvalued above 6.81. The current Forward P/OCF of 3.64 falls within the Historic Trend Line -Fairly Valued range.

9.45

P/FCF

Clearway Energy Inc. (CWEN) has a current P/FCF of 9.45. The 5-year average P/FCF is 9.33. The thresholds are as follows: Strongly Undervalued below -5.09, Undervalued between -5.09 and 2.12, Fairly Valued between 16.53 and 2.12, Overvalued between 16.53 and 23.74, and Strongly Overvalued above 23.74. The current Forward P/FCF of 9.45 falls within the Historic Trend Line -Fairly Valued range.

Clearway Energy Inc (CWEN) has a current Price-to-Book (P/B) ratio of 1.80. Compared to its 3-year average P/B ratio of 1.55 , the current P/B ratio is approximately 16.06% higher. Relative to its 5-year average P/B ratio of 1.73, the current P/B ratio is about 4.14% higher. Clearway Energy Inc (CWEN) has a Forward Free Cash Flow (FCF) yield of approximately 16.13%. Compared to its 3-year average FCF yield of 15.86%, the current FCF yield is approximately 1.69% lower. Relative to its 5-year average FCF yield of 14.42% , the current FCF yield is about 11.82% lower.

1.90

P/B

Median3y

1.55

Median5y

1.73

16.13

FCF Yield

Median3y

15.86

Median5y

14.42

Competitors Valuation Multiple

The average P/S ratio for CWEN's competitors is 2.27, providing a benchmark for relative valuation. Clearway Energy Inc Corp (CWEN) exhibits a P/S ratio of 2.29, which is 1.05% above the industry average. Given its robust revenue growth of 7.10%, 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

Enlight Renewable Energy Ltd

Performance Decomposition

Market capitalization of CWEN increased by 2.52% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.09 to 3.06.

The secondary factor is the Revenue Growth, contributed 7.10%to the performance.

Overall, the performance of CWEN in the past 1 year is driven by Margin Expansion. Which is more sustainable.

7.10%

366.00M → 392.00M

Revenue Growth

180.73%

1.09 → 3.06

Margin Expansion

-185.31%

-54.41 → 46.42

P/E Change

2.52%