Polaris Renewable Energy Valuation

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

PIF (CA$12.52) is trading below our estimate of [[fair value]] (CA$60.25)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: PIF (CA$12.52) is trading below our estimate of fair value (CA$60.25)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PIF. This is calculated by dividing PIF's market cap by their current earnings.
What is PIF's PE Ratio?
PE Ratio	26x
Earnings	US$7.19m
Market Cap	US$187.61m

PIF 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	4.1x
Enterprise Value/EBITDA	5.7x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PIF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	21.9x
WEB Westbridge Renewable Energy	2.5x	n/a	CA$82.1m
RNW TransAlta Renewables	42.2x	46.4%	CA$3.3b
BLX Boralex	35.2x	18.7%	CA$3.1b
MXG Maxim Power	8x	n/a	CA$332.2m
PIF Polaris Renewable Energy	26x	36.6%	CA$264.3m

Price-To-Earnings vs Peers: PIF is expensive based on its Price-To-Earnings Ratio (26x) compared to the peer average (15.2x).

Price to Earnings Ratio vs Industry

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

4 Companies	Price / Earnings	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: PIF is expensive based on its Price-To-Earnings Ratio (26x) compared to the Global Renewable Energy industry average (14.1x).

Price to Earnings Ratio vs Fair Ratio

What is PIF'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.

PIF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26x
Fair PE Ratio	33.4x

Price-To-Earnings vs Fair Ratio: PIF is good value based on its Price-To-Earnings Ratio (26x) compared to the estimated Fair Price-To-Earnings Ratio (33.4x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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