We’ve recently updated our valuation analysis.

Alliant Energy Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LNT 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/Revenue5.4x
Enterprise Value/EBITDA14x
PEG Ratio3x

Price to Earnings Ratio vs Peers

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

LNT PE Ratio vs Peers
The above table shows the PE ratio for LNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.8x
EVRG Evergy
16.6x5.5%US$13.6b
AGR Avangrid
17.8x6.6%US$16.1b
FE FirstEnergy
16x9.1%US$21.1b
ETR Entergy
16.7x10.3%US$20.5b
LNT Alliant Energy
19.1x6.3%US$13.3b

Price-To-Earnings vs Peers: LNT is expensive based on its Price-To-Earnings Ratio (19.1x) compared to the peer average (16.8x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: LNT is expensive based on its Price-To-Earnings Ratio (19.1x) compared to the US Electric Utilities industry average (17.8x)


Price to Earnings Ratio vs Fair Ratio

What is LNT'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.

LNT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.1x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: LNT is good value based on its Price-To-Earnings Ratio (19.1x) compared to the estimated Fair Price-To-Earnings Ratio (22x).


Share Price vs Fair Value

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

Below Fair Value: LNT ($52.99) is trading below our estimate of fair value ($55.24)

Significantly Below Fair Value: LNT is trading below fair value, but not by a significant amount.


Analyst Price Targets

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

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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