We’ve recently updated our valuation analysis.

ATCO Valuation

Is ACO.X undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACO.X?

Other financial metrics that can be useful for relative valuation.

ACO.X key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.6x
Enterprise Value/EBITDA9.3x
PEG Ratio-1.4x

Price to Earnings Ratio vs Peers

How does ACO.X's PE Ratio compare to its peers?

The above table shows the PE ratio for ACO.X vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average87.4x
CU Canadian Utilities
16.8x-0.6%CA$10.0b
AQN Algonquin Power & Utilities
170.9x67.0%CA$6.8b
CPX Capital Power
45x0.8%CA$5.7b
BLX Boralex
116.8x20.6%CA$3.9b
ACO.X ATCO
12.6x-8.9%CA$4.9b

Price-To-Earnings vs Peers: ACO.X is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (87.4x).


Price to Earnings Ratio vs Industry

How does ACO.X's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.2%
n/an/an/a

Price-To-Earnings vs Industry: ACO.X is good value based on its Price-To-Earnings Ratio (12.6x) compared to the Global Integrated Utilities industry average (17.8x)


Price to Earnings Ratio vs Fair Ratio

What is ACO.X's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACO.X PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.6x
Fair PE Ratio21.2x

Price-To-Earnings vs Fair Ratio: ACO.X is good value based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.2x).


Share Price vs Fair Value

What is the Fair Price of ACO.X when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACO.X (CA$42.98) is trading below our estimate of fair value (CA$52.08)

Significantly Below Fair Value: ACO.X is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ACO.X forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$42.98
CA$48.50
+12.8%
8.3%CA$53.00CA$41.00n/a7
Dec ’23CA$42.63
CA$48.50
+13.8%
8.3%CA$53.00CA$41.00n/a7
Nov ’23CA$41.89
CA$49.14
+17.3%
7.5%CA$53.00CA$41.00n/a7
Oct ’23CA$42.45
CA$51.36
+21.0%
4.8%CA$55.00CA$49.00n/a7
Sep ’23CA$46.71
CA$50.43
+8.0%
8.5%CA$55.00CA$41.50n/a7
Aug ’23CA$47.33
CA$49.79
+5.2%
9.2%CA$55.00CA$41.50n/a7
Jul ’23CA$44.10
CA$49.21
+11.6%
8.4%CA$55.00CA$41.50n/a7
Jun ’23CA$45.20
CA$49.21
+8.9%
8.4%CA$55.00CA$41.50n/a7
May ’23CA$45.77
CA$49.07
+7.2%
8.7%CA$55.00CA$41.50n/a7
Apr ’23CA$43.07
CA$47.57
+10.5%
7.1%CA$53.00CA$41.50n/a7
Mar ’23CA$41.59
CA$47.57
+14.4%
7.1%CA$53.00CA$41.50n/a7
Feb ’23CA$42.62
CA$47.57
+11.6%
7.1%CA$53.00CA$41.50n/a7
Jan ’23CA$42.70
CA$47.71
+11.7%
6.9%CA$53.00CA$41.50n/a7
Dec ’22CA$40.08
CA$47.88
+19.4%
6.5%CA$53.00CA$41.50CA$42.638
Nov ’22CA$41.91
CA$47.50
+13.3%
6.5%CA$53.00CA$41.50CA$41.898
Oct ’22CA$40.72
CA$47.06
+15.6%
5.8%CA$51.00CA$41.50CA$42.458
Sep ’22CA$41.74
CA$46.94
+12.5%
5.8%CA$51.00CA$41.50CA$46.718
Aug ’22CA$45.08
CA$46.75
+3.7%
6.1%CA$51.00CA$41.50CA$47.338
Jul ’22CA$43.96
CA$45.94
+4.5%
6.1%CA$51.00CA$41.00CA$44.108
Jun ’22CA$43.65
CA$45.56
+4.4%
7.1%CA$51.00CA$41.00CA$45.208
May ’22CA$42.19
CA$45.63
+8.1%
6.9%CA$51.00CA$41.00CA$45.778
Apr ’22CA$41.80
CA$44.69
+6.9%
7.4%CA$51.00CA$39.00CA$43.078
Mar ’22CA$37.59
CA$44.81
+19.2%
6.9%CA$51.00CA$40.00CA$41.598
Feb ’22CA$37.15
CA$44.56
+20.0%
7.0%CA$51.00CA$40.00CA$42.628
Jan ’22CA$36.49
CA$44.81
+22.8%
6.9%CA$51.00CA$40.00CA$42.708
Dec ’21CA$39.10
CA$45.94
+17.5%
6.0%CA$51.00CA$41.50CA$40.088

Analyst Forecast: Target price is less than 20% higher than the current share price.


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