DCF Valuation
Algonquin Power & Utilities Corp (AQN) DCF Valuation — Is AQN overvalued?
The estimated DCF fair value of one Algonquin Power & Utilities Corp (AQN) share is $0.77. Compared to the current market price of $5.52, the stock is overvalued by 86.1%.
DCF fair value
$0.77
Market price
$5.52
Upside / downside
−86.1%
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Algonquin Power & Utilities Corp (AQN) DCF valuation FAQ
What is the DCF fair value of Algonquin Power & Utilities Corp (AQN)?
The discounted-cash-flow model estimates the intrinsic fair value of one Algonquin Power & Utilities Corp (AQN) share at $0.77, based on a 10-year projection of its cash flows converging to Damodaran industry averages.
Is Algonquin Power & Utilities Corp (AQN) overvalued or undervalued?
Against the current market price of $5.52, the DCF fair value of $0.77 implies AQN is overvalued by 86.1%.
How is the AQN DCF value calculated?
It is a 10-year discounted-cash-flow estimate built from Algonquin Power & Utilities Corp's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when Algonquin Power & Utilities Corp files a new quarterly or annual report.
How this AQN valuation is built
The model projects ten years of Algonquin Power & Utilities Corp's free cash flow to the firm and discounts each year at its own cost of capital. Rather than assuming today's growth and margins persist forever, a moat-scoring step — weighing Algonquin Power & Utilities Corp's ROIC-versus-WACC spread, gross-margin trend, and reinvestment efficiency — decides how many years the business holds its edge before its economics mean-revert toward the Damodaran NYU benchmarks for its industry.
WACC is rebuilt each year from an unlevered-then-relevered beta and the company's evolving capital structure; terminal value uses the Gordon growth model with a reinvestment rate tied to the return earned on new capital (goodwill stripped out to reflect operating efficiency). Every assumption — growth, margins, tax, leverage, convergence timing — is editable, and running the full interactive model adds a 10,000-draw Monte Carlo simulation and WACC-versus-terminal-growth sensitivity heatmaps.
The market price refreshes daily; the DCF fair value updates when Algonquin Power & Utilities Corp files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-11-08.