The AES Corporation

LSE:0H6G Stock Report

Market Cap: US$9.8b

AES Valuation

Is 0H6G undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 0H6G when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0H6G ($13.75) is trading below our estimate of fair value ($42.36)

Significantly Below Fair Value: 0H6G is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0H6G?

Key metric: As 0H6G is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0H6G. This is calculated by dividing 0H6G's market cap by their current earnings.
What is 0H6G's PE Ratio?
PE Ratio9.5x
EarningsUS$1.03b
Market CapUS$9.77b

Price to Earnings Ratio vs Peers

How does 0H6G's PE Ratio compare to its peers?

The above table shows the PE ratio for 0H6G vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.3x
YU. Yü Group
8.1x-1.7%UK£310.5m
UU. United Utilities Group
65.8x25.1%UK£7.4b
SVT Severn Trent
57.9x23.2%UK£8.1b
CNA Centrica
5.6x-10.8%UK£6.2b
0H6G AES
9.5x13.8%US$9.8b

Price-To-Earnings vs Peers: 0H6G is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (34.3x).

Price to Earnings Ratio vs Industry

How does 0H6G's PE Ratio compare vs other companies in the European Renewable Energy Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
0H6G 9.5xIndustry Avg. 16.5xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0H6G is good value based on its Price-To-Earnings Ratio (9.5x) compared to the European Renewable Energy industry average (16.5x).

Price to Earnings Ratio vs Fair Ratio

What is 0H6G'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.

0H6G PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: 0H6G is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (18x).

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 0H6G forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$13.75
US$21.21
+54.3%
13.5%US$25.00US$16.00n/a11
Nov ’25US$15.01
US$21.76
+44.9%
12.2%US$25.00US$16.00n/a11
Oct ’25US$20.21
US$22.20
+9.9%
9.4%US$25.00US$18.00n/a10
Sep ’25US$17.09
US$22.44
+31.4%
9.2%US$25.00US$18.00n/a9
Aug ’25US$17.74
US$22.44
+26.5%
10.9%US$25.00US$16.00n/a9
Jul ’25US$17.31
US$22.56
+30.3%
10.9%US$25.00US$16.00n/a9
Jun ’25US$21.53
US$22.03
+2.3%
11.1%US$25.00US$16.00n/a10
May ’25US$18.11
US$21.44
+18.4%
10.7%US$25.00US$16.00n/a12
Apr ’25US$17.89
US$21.28
+18.9%
11.4%US$25.00US$16.00n/a12
Mar ’25US$15.31
US$21.44
+40.1%
11.2%US$25.00US$16.00n/a12
Feb ’25US$17.10
US$21.61
+26.4%
12.0%US$26.00US$16.00n/a12
Jan ’25US$19.17
US$21.57
+12.5%
13.3%US$26.00US$16.00n/a12
Dec ’24US$17.85
US$20.95
+17.4%
15.6%US$26.00US$16.00n/a11
Nov ’24US$14.84
US$21.09
+42.1%
24.4%US$30.00US$14.00US$15.0111
Oct ’24US$15.14
US$25.09
+65.7%
12.8%US$30.00US$20.00US$20.2111
Sep ’24US$17.56
US$27.64
+57.4%
11.2%US$32.00US$23.00US$17.0911
Aug ’24US$21.15
US$28.50
+34.8%
11.5%US$33.00US$23.00US$17.7410
Jul ’24US$20.66
US$28.70
+38.9%
11.7%US$33.00US$23.00US$17.3110
Jun ’24US$19.89
US$28.90
+45.3%
10.8%US$33.00US$23.00US$21.5310
May ’24US$23.74
US$29.90
+26.0%
8.5%US$33.00US$23.00US$18.1110
Apr ’24US$24.14
US$30.18
+25.1%
8.3%US$33.00US$23.00US$17.8911
Mar ’24US$24.77
US$30.42
+22.8%
8.0%US$33.00US$23.00US$15.3112
Feb ’24US$26.39
US$30.67
+16.2%
8.0%US$33.00US$23.00US$17.1012
Jan ’24US$28.69
US$29.92
+4.3%
10.4%US$33.00US$22.00US$19.1712
Dec ’23US$28.85
US$29.33
+1.7%
10.2%US$33.00US$22.00US$17.8512
Nov ’23US$26.38
US$28.46
+7.9%
8.1%US$31.00US$22.00US$14.8413

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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