AltaGas Ltd.

TSX:ALA Stock Report

Market Cap: CA$10.0b

AltaGas Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ALA (CA$33.2) is trading below our estimate of fair value (CA$112.69)

Significantly Below Fair Value: ALA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALA?

Key metric: As ALA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ALA. This is calculated by dividing ALA's market cap by their current earnings.
What is ALA's PE Ratio?
PE Ratio20.3x
EarningsCA$488.00m
Market CapCA$9.96b

Price to Earnings Ratio vs Peers

How does ALA's PE Ratio compare to its peers?

The above table shows the PE ratio for ALA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.7x
SPB Superior Plus
64.3x65.0%CA$1.5b
CU Canadian Utilities
22.3xn/aCA$9.4b
TA TransAlta
38.8x-31.6%CA$6.1b
EMA Emera
25.3x13.1%CA$15.9b
ALA AltaGas
20.3x14.1%CA$10.0b

Price-To-Earnings vs Peers: ALA is good value based on its Price-To-Earnings Ratio (20.3x) compared to the peer average (37.7x).

Price to Earnings Ratio vs Industry

How does ALA's PE Ratio compare vs other companies in the Global Gas Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ALA 20.3xIndustry Avg. 14.6xNo. of Companies13PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ALA is expensive based on its Price-To-Earnings Ratio (20.3x) compared to the Global Gas Utilities industry average (14.6x).

Price to Earnings Ratio vs Fair Ratio

What is ALA'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.

ALA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.3x
Fair PE Ratio24.9x

Price-To-Earnings vs Fair Ratio: ALA is good value based on its Price-To-Earnings Ratio (20.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.9x).

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 ALA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$33.20
CA$38.20
+15.1%
4.3%CA$40.00CA$35.00n/a10
Dec ’25CA$34.24
CA$38.20
+11.6%
4.3%CA$40.00CA$35.00n/a10
Nov ’25CA$33.71
CA$38.20
+13.3%
4.3%CA$40.00CA$35.00n/a10
Oct ’25CA$33.55
CA$37.60
+12.1%
4.6%CA$40.00CA$35.00n/a10
Sep ’25CA$34.52
CA$37.10
+7.5%
3.9%CA$40.00CA$35.00n/a10
Aug ’25CA$33.66
CA$35.91
+6.7%
5.1%CA$40.00CA$33.00n/a11
Jul ’25CA$30.91
CA$34.91
+12.9%
4.3%CA$38.00CA$33.00n/a11
Jun ’25CA$30.75
CA$34.83
+13.3%
4.2%CA$38.00CA$33.00n/a12
May ’25CA$30.13
CA$33.75
+12.0%
3.8%CA$36.00CA$32.00n/a12
Apr ’25CA$29.71
CA$33.38
+12.4%
4.9%CA$36.00CA$30.00n/a13
Mar ’25CA$29.30
CA$33.23
+13.4%
5.0%CA$36.00CA$30.00n/a13
Feb ’25CA$28.05
CA$33.00
+17.6%
5.5%CA$36.00CA$30.00n/a12
Jan ’25CA$27.82
CA$32.58
+17.1%
7.4%CA$36.00CA$27.00n/a12
Dec ’24CA$27.72
CA$32.09
+15.8%
7.3%CA$36.00CA$27.00CA$34.2411
Nov ’24CA$26.30
CA$32.18
+22.4%
7.4%CA$36.00CA$27.00CA$33.7111
Oct ’24CA$26.05
CA$32.31
+24.0%
7.2%CA$36.00CA$27.00CA$33.5513
Sep ’24CA$27.23
CA$32.07
+17.8%
7.2%CA$36.00CA$27.00CA$34.5215
Aug ’24CA$26.03
CA$31.63
+21.5%
7.5%CA$36.00CA$27.00CA$33.6616
Jul ’24CA$23.80
CA$31.22
+31.2%
9.5%CA$35.00CA$25.00CA$30.9116
Jun ’24CA$23.50
CA$31.03
+32.0%
9.4%CA$35.00CA$25.00CA$30.7516
May ’24CA$23.84
CA$31.06
+30.3%
9.5%CA$35.00CA$25.00CA$30.1316
Apr ’24CA$22.53
CA$30.94
+37.3%
10.1%CA$35.00CA$24.00CA$29.7116
Mar ’24CA$23.41
CA$31.75
+35.6%
7.9%CA$36.00CA$29.00CA$29.3016
Feb ’24CA$24.47
CA$31.63
+29.2%
7.8%CA$36.00CA$29.00CA$28.0516
Jan ’24CA$23.38
CA$31.60
+35.2%
8.3%CA$36.00CA$28.00CA$27.8215
Dec ’23CA$22.96
CA$31.67
+37.9%
7.5%CA$36.00CA$29.00CA$27.7215

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 14:29
End of Day Share Price 2024/12/27 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

AltaGas Ltd. is covered by 25 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nathan HeywoodATB Capital Markets
Anthony LintonBarclays
Benjamin PhamBMO Capital Markets Equity Research