Spire (SR) Valuation: How Infrastructure Investments and Regulatory Support Are Shaping Investor Expectations

Spire (SR) has drawn attention as ongoing investments in infrastructure modernization and system resilience continue to expand its regulated asset base. A supportive regulatory environment appears to be helping drive steady net income growth.

See our latest analysis for Spire.

Spire’s share price has seen strong momentum, rising nearly 10% in the past month and over 21% year-to-date as investors warm to its infrastructure upgrades and stable regulatory support. These moves have helped deliver a solid 34% total shareholder return over the last year, with long-term returns also trending upward.

If Spire’s recent gains have you thinking bigger, it might be the perfect time to broaden your search and discover fast growing stocks with high insider ownership

With shares already up more than 20% this year, investors may wonder if Spire’s steady performance and growth are fully reflected in the stock price or if there could still be a compelling buying opportunity.

Most Popular Narrative: 3.3% Overvalued

Spire’s last close at $83.02 stands above the narrative's fair value of $80.36, suggesting the market might be pricing in more optimism than analysts currently expect. This opens the door for a deeper look at the fundamental drivers underpinning Spire’s share price and the valuation story that has caught investors’ attention.

Significant and ongoing investments in infrastructure modernization and system resilience, supported by constructive regulatory frameworks and reliable cost recovery mechanisms, are growing Spire's regulated asset base. This should result in higher allowed returns and gradual increases in net income.

Read the complete narrative.

Curious what powers this story? The core of the valuation is bold growth ambitions and a framework that rewards consistent profitability. Can transformative upgrades really fuel above-market returns? Explore the narrative to find out which levers analysts think will move the needle for Spire.

Result: Fair Value of $80.36 (OVERVALUED)

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

However, policy-driven electrification and stricter climate regulations could pose real challenges for Spire, potentially pressuring long-term demand and business growth.

Find out about the key risks to this Spire narrative.

Another View: Discounted Cash Flow Signals Bargain

Taking a different approach, our DCF model values Spire at $97.65, more than 15% above the current share price. This suggests that, based on projected future cash flows, the market may be undervaluing Spire’s longer-term earnings power. Could this signal an overlooked opportunity, or is the market pricing in risks the model cannot see?

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

Build Your Own Spire Narrative

If you see the story differently or want to dive into the data your own way, you can craft a custom narrative in just a few minutes, too. Do it your way.

A great starting point for your Spire 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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