Capital Power Corporation

TSX:CPX Stock Report

Market Cap: CA$8.3b

Capital Power Valuation

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

Below Fair Value: CPX (CA$63.51) is trading below our estimate of fair value (CA$203.08)

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?

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

The above table shows the Price to Earnings ratio for CPX. This is calculated by dividing CPX's market cap by their current earnings.
What is CPX's PE Ratio?
PE Ratio16x
EarningsCA$520.00m
Market CapCA$8.27b

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 Average30.5x
TA TransAlta
38.5x-31.6%CA$5.9b
MXG Maxim Power
7.8xn/aCA$323.6m
RNW TransAlta Renewables
42.2x46.4%CA$3.3b
BLX Boralex
33.5x18.7%CA$3.0b
CPX Capital Power
16x-11.0%CA$8.3b

Price-To-Earnings vs Peers: CPX is good value based on its Price-To-Earnings Ratio (16x) compared to the peer average (26.6x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CPX 16.0xIndustry Avg. 15.1xNo. of Companies4PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CPX is expensive based on its Price-To-Earnings Ratio (16x) compared to the Global Renewable Energy industry average (15.2x).

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 Ratio16x
Fair PE Ratio19.2x

Price-To-Earnings vs Fair Ratio: CPX is good value based on its Price-To-Earnings Ratio (16x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

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$63.51
CA$64.18
+1.1%
14.9%CA$79.00CA$40.00n/a11
Dec ’25CA$62.28
CA$56.60
-9.1%
11.9%CA$66.00CA$40.00n/a10
Nov ’25CA$55.30
CA$55.70
+0.7%
10.8%CA$62.00CA$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$40.00CA$62.2810
Nov ’24CA$35.88
CA$46.18
+28.7%
7.4%CA$52.00CA$40.00CA$55.3011
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

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 Analysis2024/12/23 08:44
End of Day Share Price 2024/12/23 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

Capital Power Corporation is covered by 20 analysts. 5 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
Benjamin PhamBMO Capital Markets Equity Research
David GalisonCanaccord Genuity