ALLETE, Inc.

DB:AEBA Stock Report

Market Cap: €3.6b

ALLETE Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: AEBA (€61.5) is trading above our estimate of fair value (€20.21)

Significantly Below Fair Value: AEBA is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AEBA. This is calculated by dividing AEBA's market cap by their current earnings.
What is AEBA's PE Ratio?
PE Ratio20.8x
EarningsUS$180.20m
Market CapUS$3.75b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AEBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.1x
LEC Lechwerke
25.9xn/a€2.5b
EBK EnBW Energie Baden-Württemberg
28.5xn/a€17.1b
MNV6 Mainova
33.7xn/a€1.9b
MVV1 MVV Energie
12.3xn/a€2.0b
AEBA ALLETE
20.8x15.1%€3.8b

Price-To-Earnings vs Peers: AEBA is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (25.1x).

Price to Earnings Ratio vs Industry

How does AEBA's PE Ratio compare vs other companies in the European Electric Utilities Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AEBA 20.8xIndustry Avg. 12.7xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AEBA is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the European Electric Utilities industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is AEBA'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.

AEBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: AEBA is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).

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 AEBA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€61.50
€62.30
+1.3%
11.3%€70.21€53.13n/a3
Nov ’25€58.50
€60.68
+3.7%
9.8%€68.04€51.49n/a4
Oct ’25€57.00
€62.82
+10.2%
12.6%€74.45€52.11n/a4
Sep ’25€56.50
€62.82
+11.2%
12.6%€74.45€52.11n/a4
Aug ’25€58.50
€62.82
+7.4%
12.6%€74.45€52.11n/a4
Jul ’25€57.00
€62.82
+10.2%
12.6%€74.45€52.11n/a4
Jun ’25€57.00
€62.44
+9.5%
11.3%€73.93€51.75n/a5
May ’25€54.50
€58.58
+7.5%
12.8%€74.75€52.33n/a7
Apr ’25€54.50
€58.01
+6.4%
12.4%€73.69€52.50n/a7
Mar ’25€51.50
€58.34
+13.3%
12.2%€73.94€52.68n/a7
Feb ’25€54.50
€58.00
+6.4%
12.5%€73.51€52.38n/a7
Jan ’25€55.00
€54.62
-0.7%
17.8%€73.15€37.49n/a8
Dec ’24€50.50
€54.86
+8.6%
18.6%€74.75€38.31n/a7
Nov ’24€50.50
€56.44
+11.8%
18.4%€75.98€38.94€58.507
Oct ’24€49.20
€57.83
+17.5%
16.7%€74.62€45.70€57.007
Sep ’24€50.50
€57.09
+13.0%
16.3%€72.99€44.71€56.507
Aug ’24€51.00
€56.63
+11.0%
16.3%€71.91€44.05€58.507
Jul ’24€52.50
€59.03
+12.4%
13.8%€72.98€49.26€57.007
Jun ’24€53.00
€60.40
+14.0%
11.6%€72.58€48.99€57.007
May ’24€56.00
€60.82
+8.6%
11.5%€72.93€49.23€54.507
Apr ’24€58.50
€61.37
+4.9%
10.9%€75.37€50.87€54.507
Mar ’24€56.00
€61.54
+9.9%
11.2%€75.42€50.91€51.507
Feb ’24€56.00
€59.95
+7.1%
10.4%€71.78€49.70€54.507
Jan ’24€61.00
€61.78
+1.3%
12.4%€77.69€49.61€55.007
Dec ’23€62.00
€60.88
-1.8%
15.8%€80.39€48.43€50.507
Nov ’23€55.00
€60.20
+9.4%
17.8%€84.07€50.65€50.507

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

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