BEPC
Brookfield Renewable Corporation
$28.71
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 41.4% below fair value
You pay
$28.71
Bear
$40.12
Fair
$49.04
Bull
$57.96
Bear
$40.12
+39.7%
$1.63 × 25x P/E
Fair
$49.04
+70.8%
$1.63 × 30x P/E
Bull
$57.96
+101.8%
$1.63 × 36x P/E
Adjust Assumptions
30.1x
1.63$
Key Value Driver
Normalized P/E multiple (30x base case)
Implied Market Multiple
17.6x
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