BEPC
Brookfield Renewable Corporation
$32.29
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 34.2% below fair value
You pay
$32.29
Bear
$40.12
Fair
$49.04
Bull
$57.96
Bear
$40.12
+24.3%
$1.63 × 25x P/E
Fair
$49.04
+51.9%
$1.63 × 30x P/E
Bull
$57.96
+79.5%
$1.63 × 36x P/E
Adjust Assumptions
30.1x
1.63$
Key Value Driver
Normalized P/E multiple (30x base case)
Implied Market Multiple
19.8x
Summary
Applying a 30x P/E to adjusted EPS of $1.63, the base-case value is $49.04 per share. DDM cross-check: $41.91.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples