We’ve recently updated our valuation analysis.

Avangrid Valuation

Is AGR 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 AGR?

Other financial metrics that can be useful for relative valuation.

AGR 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/Revenue3.4x
Enterprise Value/EBITDA13.5x
PEG Ratio3.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AGR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.8x
EVRG Evergy
18.1x6.1%US$14.4b
LNT Alliant Energy
20.6x7.8%US$13.7b
ETR Entergy
17.7x10.3%US$22.2b
FE FirstEnergy
19x9.0%US$23.5b
AGR Avangrid
18.4x5.3%US$16.5b

Price-To-Earnings vs Peers: AGR is good value based on its Price-To-Earnings Ratio (18.4x) compared to the peer average (18.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.5%
n/an/an/a

Price-To-Earnings vs Industry: AGR is good value based on its Price-To-Earnings Ratio (18.4x) compared to the US Electric Utilities industry average (19.4x)


Price to Earnings Ratio vs Fair Ratio

What is AGR'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.

AGR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.4x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: AGR is good value based on its Price-To-Earnings Ratio (18.4x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).


Share Price vs Fair Value

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

Below Fair Value: AGR ($42.69) is trading above our estimate of fair value ($29.4)

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


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 AGR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$42.69
US$43.22
+1.2%
12.8%US$56.00US$36.00n/a9
Jan ’24US$42.98
US$42.56
-1.0%
13.8%US$56.00US$35.00n/a9
Dec ’23US$42.84
US$42.33
-1.2%
14.0%US$57.00US$35.00n/a9
Nov ’23US$40.61
US$42.30
+4.2%
13.2%US$57.00US$35.00n/a10
Oct ’23US$41.70
US$46.00
+10.3%
10.0%US$57.00US$41.00n/a11
Sep ’23US$48.97
US$44.91
-8.3%
10.7%US$57.00US$40.00n/a11
Aug ’23US$48.82
US$44.36
-9.1%
11.5%US$57.00US$39.00n/a11
Jul ’23US$47.83
US$45.27
-5.3%
11.5%US$57.00US$39.00n/a11
Jun ’23US$47.72
US$44.56
-6.6%
8.4%US$51.00US$39.00n/a9
May ’23US$44.35
US$45.00
+1.5%
7.8%US$51.00US$39.00n/a9
Apr ’23US$47.49
US$43.67
-8.1%
6.5%US$48.00US$39.00n/a9
Mar ’23US$44.13
US$45.11
+2.2%
10.5%US$56.00US$39.00n/a9
Feb ’23US$46.21
US$50.00
+8.2%
13.1%US$60.00US$42.00US$42.699
Jan ’23US$49.88
US$50.56
+1.4%
12.1%US$60.00US$42.00US$42.989
Dec ’22US$50.85
US$51.44
+1.2%
11.0%US$60.00US$45.00US$42.849
Nov ’22US$52.58
US$51.56
-1.9%
10.9%US$60.00US$45.00US$40.619
Oct ’22US$48.74
US$52.11
+6.9%
10.5%US$61.00US$45.00US$41.709
Sep ’22US$55.32
US$51.78
-6.4%
11.0%US$61.00US$45.00US$48.979
Aug ’22US$52.14
US$51.56
-1.1%
11.0%US$61.00US$45.00US$48.829
Jul ’22US$51.50
US$51.78
+0.5%
10.9%US$61.00US$45.00US$47.839
Jun ’22US$52.40
US$51.44
-1.8%
9.4%US$61.00US$45.00US$47.729
May ’22US$50.90
US$49.88
-2.0%
11.4%US$61.00US$43.00US$44.358
Apr ’22US$50.25
US$47.86
-4.8%
10.9%US$57.00US$43.00US$47.497
Mar ’22US$46.22
US$47.14
+2.0%
12.4%US$57.00US$40.00US$44.137
Feb ’22US$47.36
US$46.00
-2.9%
10.2%US$57.00US$41.00US$46.217

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


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