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ALLETE Inc (NYSE:ALE)

59.49 USD +0.45 USD ( +0.76% )
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ALLETE Inc
NYSE:ALE
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DCF Value

Estimated DCF Value of one ALE stock under the base case scenario is 57.8 USD. Compared to the current market price of 59.49 USD, the stock is Overvalued by 3%.

Estimated DCF Value of one NYSE:ALE stock is 57.8 USD. Compared to the current market price of 59.49 USD, the stock is Overvalued by 3% .

DCF valuation is one of two methods of placing a monetary value on a company; the other is Relative Valuation method. We use a combination of these two methods to calculate the Intrinsic Value of stock as accurately as possible.

Discount Rate
7.33%
Terminal Growth
0%
Growth Period
5 Years
Discount Rate
7.33%
Terminal Growth
0%
Growth Period
5 Years

You can change any inputs, such as future revenue, using Present Value Calculation block.

ALE DCF Value
Base Case
57.8 USD
Overvaluation 3%
DCF Value
Price
Worst Case
Base Case
Best Case
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DCF Valuation
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American Electric Power Company Inc
AGR
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FTS
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DCF Value Calculation

Capital Structure
From Present Value to DCF Value

Present Value 3.3B USD
Equity Value 3.3B USD
/ Shares Outstanding 57M
ALE DCF Value 57.8 USD
Overvalued by 3%

To view the process of calculating the Present Value of ALLETE Inc' future free cash flow, see the Present Value Calculation block.

Present Value Calculation

Discounted Cash Flow Model
Present Value of Free Cash Flow

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To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Model Financials
Financials used in the DCF Model

Sensitivity Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Analyze the possible values of ALE stock DCF Value given various model inputs such as Revenue Growth, Operating Margin, and Discount Rate.

See Also

Similar Stocks

ALE Stock DCF Valuation FAQ

What is the DCF value of one ALE stock?

Estimated DCF Value of one ALE stock under the base case scenario is 57.8 USD. Compared to the current market price of 59.49 USD, the stock is Overvalued by 3%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock intrinsic values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project ALLETE Inc's future free cash flow and discount it at a selected discount rate to calculate its Present Value (3.3B USD).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 57.8 USD per one ALE share.