Assessing Hannon Armstrong Sustainable Infrastructure Capital’s (HASI) Valuation Following Recent Investor Interest

HA Sustainable Infrastructure Capital (HASI) has seen shares move in recent weeks, sparking some interest from investors tracking the company’s performance. Trading trends highlight how market sentiment can shift, particularly for infrastructure-focused names such as HASI.

See our latest analysis for HA Sustainable Infrastructure Capital.

Recent movement in HA Sustainable Infrastructure Capital’s share price reflects how investor sentiment continues to ebb and flow. While the 1-day gain of 2.66% grabbed attention, the year-to-date share price return sits at 6.52%. However, longer-term performance tells a more mixed story, with the total shareholder return down over the past year but still positive across three years. This suggests shifting momentum as the market reassesses growth and risk in the infrastructure sector.

If you’re looking for what else is gaining traction beyond infrastructure, now is the time to broaden your search and discover fast growing stocks with high insider ownership

With shares trading roughly 35% below average analyst targets and solid revenue growth reported, the real question is whether HA Sustainable Infrastructure Capital remains undervalued or if the market is already anticipating its future gains.

Price-to-Earnings of 17.6x: Is it justified?

HA Sustainable Infrastructure Capital trades at a price-to-earnings (P/E) ratio of 17.6x, positioning it as more expensive compared to the average for both its industry and its calculated fair ratio.

The P/E ratio measures how much investors are paying for a dollar of earnings today. It is especially relevant for diversified financials, since it can signal growth expectations or market caution about potential risks ahead.

At 17.6x, the company is priced higher than the US Diversified Financial industry average of 16.5x. While revenue is forecast to grow notably, the market is currently assigning a premium. In comparison to the estimated fair P/E ratio of 14.9x, the current multiple suggests the price could be stretched above fundamental value if growth does not accelerate.

Explore the SWS fair ratio for HA Sustainable Infrastructure Capital

Result: Price-to-Earnings of 17.6x (OVERVALUED)

However, sustained revenue growth may falter if market volatility intensifies or if sector-specific challenges emerge in the diversified financials space.

Find out about the key risks to this HA Sustainable Infrastructure Capital narrative.

Another View: Discounted Cash Flow Perspective

While the price-to-earnings ratio points to a potentially stretched valuation, our DCF model suggests a different possibility. According to this approach, HA Sustainable Infrastructure Capital is trading about 11% below its estimated fair value. This means that, by the DCF method, the stock may actually be undervalued right now. Does this divergence highlight an overlooked opportunity or just a disconnect between models?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out HA Sustainable Infrastructure Capital for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own HA Sustainable Infrastructure Capital Narrative

If you have a different perspective or want to dive deeper into the numbers, you can craft your own narrative in just a few minutes. Do it your way

A great starting point for your HA Sustainable Infrastructure Capital research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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