Brookfield Renewable Valuation

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

BEPC (CA$42.12) is trading below our estimate of [[fair value]] (CA$212.69)

Is BEPC 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: BEPC (CA$42.12) is trading below our estimate of fair value (CA$212.69)

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

Key Valuation Metric

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

Key metric: As BEPC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for BEPC. This is calculated by dividing BEPC's market cap by their current revenue.
What is BEPC's PS Ratio?
PS Ratio	2.4x
Sales	US$4.75b
Market Cap	US$11.18b

BEPC 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/Revenue	6.8x
Enterprise Value/EBITDA	11.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does BEPC's PS Ratio compare to its peers?

The above table shows the PS ratio for BEPC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	3.6x
BEP.UN Brookfield Renewable Partners	2.1x	9.0%	CA$16.9b
NPI Northland Power	2.2x	3.5%	CA$5.2b
BLX Boralex	3.3x	3.7%	CA$3.1b
RNW TransAlta Renewables	6.6x	0.5%	CA$3.3b
BEPC Brookfield Renewable	2.4x	7.3%	CA$15.8b

Price-To-Sales vs Peers: BEPC is good value based on its Price-To-Sales Ratio (2.4x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

How does BEPC's PS Ratio compare vs other companies in the CA Renewable Energy Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
SPG Spark Power Group	0.3x	n/a	US$54.14m
CBLU Clear Blue Technologies International	0.3x	n/a	US$1.32m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: BEPC is expensive based on its Price-To-Sales Ratio (2.4x) compared to the North American Renewable Energy industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

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

BEPC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.4x
Fair PS Ratio	2.7x

Price-To-Sales vs Fair Ratio: BEPC is good value based on its Price-To-Sales Ratio (2.4x) compared to the estimated Fair Price-To-Sales Ratio (2.7x).

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 BEPC forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$42.12	CA$40.53 -3.8%	3.7%	CA$42.01	CA$39.04	n/a	2
Nov ’25	CA$41.85	CA$40.06 -4.3%	5.0%	CA$42.06	CA$38.06	n/a	2
Oct ’25	CA$44.20	CA$40.06 -9.4%	5.0%	CA$42.06	CA$38.06	n/a	2
Aug ’25	CA$38.45	CA$42.29 +10.0%	3.1%	CA$43.59	CA$40.98	n/a	2
Jul ’25	CA$38.76	CA$42.29 +9.1%	3.1%	CA$43.59	CA$40.98	n/a	2
Jun ’25	CA$42.97	CA$35.80 -16.7%	21.8%	CA$43.60	CA$27.99	n/a	2
May ’25	CA$35.39	CA$41.43 +17.1%	5.9%	CA$43.85	CA$39.00	n/a	2
Apr ’25	CA$33.33	CA$41.05 +23.2%	4.7%	CA$42.99	CA$39.10	n/a	2
Mar ’25	CA$33.08	CA$41.05 +24.1%	4.7%	CA$42.99	CA$39.10	n/a	2

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

ATCO

CA$5.4b

Engages in the provision of energy, logistics and transportation, water, food and agriculture, real estate, and shelter services in Canada, Australia, and internationally.

ACO.X

CA$47.93

0.8%

28.2%

Brookfield Renewable Partners

CA$14.0b

Owns a portfolio of renewable power generating facilities primarily in North America, Colombia, and Brazil.

BEP.PRO

CA$24.99

0.04%

8.7%

Spark Power Group

CA$73.6m

Spark Power Group Inc. provides electrical contracting, operations, and maintenance services, as well as energy sustainability solutions in Canada and the United States.

SPG

CA$0.81

58.8%