Capital Power Corporation

TSX:CPX Stock Report

Market Cap: CA$6.6b

Capital Power Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 CPX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CPX (CA$50.36) is trading below our estimate of fair value (CA$195.85)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CPX 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/Revenue3.1x
Enterprise Value/EBITDA7.8x
PEG Ratio-1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CPX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.6x
TA TransAlta
7.5x-123.2%CA$4.2b
NPI Northland Power
83.3x13.2%CA$5.6b
BLX Boralex
37.3x15.1%CA$3.6b
RNW TransAlta Renewables
42.2x46.4%CA$3.3b
CPX Capital Power
10.7x-10.9%CA$6.6b

Price-To-Earnings vs Peers: CPX is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (42.7x).

Price to Earnings Ratio vs Industry

How does CPX's PE Ratio compare vs other companies in the North American Renewable Energy Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-23.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-23.9%
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Price-To-Earnings vs Industry: CPX is good value based on its Price-To-Earnings Ratio (10.7x) compared to the North American Renewable Energy industry average (17.7x).

Price to Earnings Ratio vs Fair Ratio

What is CPX'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.

CPX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.7x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: CPX is good value based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).

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 CPX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$50.36
CA$47.30
-6.1%
11.7%CA$60.00CA$40.00n/a10
Oct ’25CA$50.22
CA$47.30
-5.8%
11.7%CA$60.00CA$40.00n/a10
Sep ’25CA$44.95
CA$45.30
+0.8%
8.2%CA$54.00CA$40.00n/a10
Aug ’25CA$43.36
CA$44.91
+3.6%
7.3%CA$53.00CA$40.00n/a11
Jul ’25CA$38.99
CA$41.82
+7.3%
10.4%CA$52.00CA$37.00n/a11
Jun ’25CA$39.33
CA$41.45
+5.4%
9.7%CA$50.00CA$37.00n/a11
May ’25CA$35.53
CA$42.55
+19.7%
8.3%CA$49.00CA$38.00n/a11
Apr ’25CA$37.94
CA$43.82
+15.5%
8.5%CA$51.00CA$38.00n/a11
Mar ’25CA$38.66
CA$43.91
+13.6%
8.2%CA$51.00CA$39.00n/a11
Feb ’25CA$37.45
CA$43.40
+15.9%
7.9%CA$51.00CA$38.00n/a10
Jan ’25CA$37.84
CA$44.80
+18.4%
6.9%CA$51.00CA$40.00n/a10
Dec ’24CA$37.72
CA$45.00
+19.3%
7.8%CA$53.00CA$40.00n/a10
Nov ’24CA$35.88
CA$46.18
+28.7%
7.4%CA$52.00CA$40.00n/a11
Oct ’24CA$37.92
CA$48.75
+28.6%
5.6%CA$54.00CA$44.00CA$50.2212
Sep ’24CA$41.02
CA$49.38
+20.4%
6.9%CA$57.00CA$44.00CA$44.9513
Aug ’24CA$40.66
CA$50.69
+24.7%
6.0%CA$57.00CA$47.00CA$43.3613
Jul ’24CA$42.10
CA$51.54
+22.4%
5.7%CA$58.00CA$47.00CA$38.9913
Jun ’24CA$44.74
CA$51.85
+15.9%
5.1%CA$58.00CA$48.00CA$39.3313
May ’24CA$45.11
CA$51.31
+13.7%
4.4%CA$57.00CA$48.00CA$35.5313
Apr ’24CA$41.64
CA$51.15
+22.8%
4.5%CA$57.00CA$48.00CA$37.9413
Mar ’24CA$41.85
CA$51.96
+24.2%
4.3%CA$57.00CA$50.00CA$38.6613
Feb ’24CA$44.31
CA$52.35
+18.1%
4.0%CA$57.00CA$50.00CA$37.4513
Jan ’24CA$46.33
CA$52.31
+12.9%
4.6%CA$57.00CA$50.00CA$37.8413
Dec ’23CA$47.17
CA$51.23
+8.6%
5.4%CA$56.00CA$48.00CA$37.7213
Nov ’23CA$44.15
CA$51.00
+15.5%
4.8%CA$56.00CA$48.00CA$35.8813
Oct ’23CA$46.90
CA$52.73
+12.4%
5.8%CA$58.00CA$49.00CA$37.9213

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

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