CWEN
Clearway Energy, Inc.
$38.97
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 20.3% below fair value
You pay
$38.97
Bear
$40.01
Fair
$48.90
Bull
$57.79
Bear
$40.01
+2.7%
$2.30 × 18x P/E
Fair
$48.90
+25.5%
$2.30 × 22x P/E
Bull
$57.79
+48.3%
$2.30 × 26x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
16.9x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $43.67 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $48.90 per share.
Warnings
The company's reported profits differ from official accounting profits by 62%. Check what costs are being left out of the adjusted number.
The company pays out 129% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Dividend-based valuation: $88.83 (above our primary estimate by 75%). Large gaps may signal the dividend doesn't reflect full earning power.
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