CWEN
Clearway Energy, Inc.
$33.41
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 32.3% below fair value
You pay
$33.41
Bear
$40.39
Fair
$49.36
Bull
$58.33
Bear
$40.39
+20.9%
$2.30 × 18x P/E
Fair
$49.36
+47.7%
$2.30 × 22x P/E
Bull
$58.33
+74.6%
$2.30 × 26x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
14.5x
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 $45.50 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $49.36 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