Assessing Alliant Energy’s (LNT) Valuation After a Year of Steady Share Price Gains

Alliant Energy (LNT) has quietly delivered a solid year, with the stock up roughly 16% over the past year and about 12% year to date, outpacing many defensive utilities.

See our latest analysis for Alliant Energy.

That rise has been driven more by a steady reset in expectations than any single headline, with a roughly 12 percent year to date share price return reinforcing a three year total shareholder return above 30 percent. This suggests momentum is quietly building as investors reassess its regulated growth and income profile.

If this kind of steady compounding appeals to you, it could be a good time to broaden your search and discover fast growing stocks with high insider ownership.

With earnings still growing, a modest premium to intrinsic value, and a small discount to analyst targets, the key question now is whether Alliant remains mispriced for its dependable growth or if the market has already priced in what comes next.

Most Popular Narrative: 9.1% Undervalued

With Alliant Energy last closing at 65.48 dollars against a narrative fair value of 72.00 dollars, the storyline leans toward patient upside built on steady fundamentals rather than speculative surprises.

The company's proactive alignment with customer demand, decarbonization, and infrastructure modernization trends positions it to benefit from both rising ESG capital inflows and increasing electricity volumes tied to electrification of industry and digital infrastructure, positively impacting long-term revenue and earnings trajectory.

Read the complete narrative.

Want to see how modest growth assumptions, firmer margins, and a richer future earnings multiple combine into that higher fair value line? The narrative unpacks a surprisingly ambitious earnings path, a disciplined discount rate, and a premium valuation usually reserved for faster growing names. However, the exact mix might challenge what you think a regulated utility can justify.

Result: Fair Value of $72 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside depends on major data center projects and constructive regulators, and delays or policy shifts could quickly undercut the current fair value story.

Find out about the key risks to this Alliant Energy narrative.

Another View: SWS DCF Suggests Limited Upside

While the narrative fair value points to upside, our DCF model paints a cooler picture, putting fair value closer to 60.84 dollars versus today’s 65.48 dollars. In this view, Alliant looks mildly overvalued, raising the question: are investors paying upfront for years of smooth execution?

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 Alliant Energy 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 913 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 Alliant Energy Narrative

If you see the story differently or want to dig into the numbers yourself, you can shape a custom view in under three minutes: Do it your way.

A great starting point for your Alliant Energy research is our analysis highlighting 2 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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