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Clearway Energy (Clearway Energy) Intrinsic Value: Projected FCF : $56.06 (As of Apr. 27, 2024)


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What is Clearway Energy Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-27), Clearway Energy's Intrinsic Value: Projected FCF is $56.06. The stock price of Clearway Energy is $23.14. Therefore, Clearway Energy's Price-to-Intrinsic-Value-Projected-FCF of today is 0.4.

The historical rank and industry rank for Clearway Energy's Intrinsic Value: Projected FCF or its related term are showing as below:

CWEN' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.41   Med: 0.52   Max: 0.72
Current: 0.41

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Clearway Energy was 0.72. The lowest was 0.41. And the median was 0.52.

CWEN's Price-to-Projected-FCF is ranked better than
76.13% of 222 companies
in the Utilities - Independent Power Producers industry
Industry Median: 0.885 vs CWEN: 0.41

Clearway Energy Intrinsic Value: Projected FCF Historical Data

The historical data trend for Clearway Energy's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Clearway Energy Intrinsic Value: Projected FCF Chart

Clearway Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.88 47.09 50.19 60.84 56.00

Clearway Energy Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.84 51.90 55.22 60.07 56.00

Competitive Comparison of Clearway Energy's Intrinsic Value: Projected FCF

For the Utilities - Renewable subindustry, Clearway Energy's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Clearway Energy's Price-to-Projected-FCF Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Clearway Energy's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Clearway Energy's Price-to-Projected-FCF falls into.



Clearway Energy Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Clearway Energy's Free Cash Flow(6 year avg) = $440.48.

Clearway Energy's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(10.056836766857*440.48+2100*0.8)/117.000
=52.22

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Clearway Energy  (NYSE:CWEN) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Clearway Energy's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=23.14/52.220815889444
=0.44

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Clearway Energy Intrinsic Value: Projected FCF Related Terms

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Clearway Energy (Clearway Energy) Business Description

Traded in Other Exchanges
Address
300 Carnegie Center, Suite 300, Princeton, NJ, USA, 08540
Clearway Energy Inc is a publicly-traded energy infrastructure investor with a focus on investments in clean energy and owner of modern, sustainable and long-term contracted assets across North America. The company segments its operations into conventional power generation, renewables and thermal divisions.
Executives
Christopher S Sotos director CLEARWAY ENERGY, INC., 300 CARNEGIE CENTER, SUITE 300, PRINCETON NJ 08540
Global Infrastructure Investors Iii, Llc 10 percent owner C/O GLOBAL INFRASTRUCTURE PARTNERS, 1345 AVENUE OF THE AMERICAS, 30TH FLOOR, NEW YORK NY 10105
Se Totalenergies director, 10 percent owner 2 PLACE JEAN MILLIER, ARCHE NORD COUPOLE/REGNAULT, PARIS LA DEFENSE CEDEX I0 92078
Emmanuel Barrois director 300 CARNEGIE CENTER, SUITE 300, PRINCETON NJ 08540
Guillaume Hediard director 300 CARNEGIE CENTER, SUITE 300, PRINCETON NJ 08540
Vincent Stoquart director C/O SUNPOWER CORPORATION, 51 RIO ROBLES, SAN JOSE CA 95134
Totalenergies Gestion Usa Sarl 10 percent owner LA DEFENSE 6 2 PLACE JEAN MILLIER, COURBEVOIE, HAUTS-DE-SEINE I0 92400
Totalenergies Holdings Usa, Inc. 10 percent owner 1201 LOUISIANA STREET, SUITE 1800, HOUSTON TX 77002
Totalenergies Renewables Usa, Llc 10 percent owner 1201 LOUISIANA STREET, SUITE 1800, HOUSTON TX 77002
Totalenergies Delaware, Inc. 10 percent owner 1201 LOUISIANA STREET, SUITE 1800, HOUSTON TX 77002
Zephyr Holdings Gp, Llc director, 10 percent owner C/O GLOBAL INFRASTRUCTURE PARTNERS, 1345 AVENUE OF THE AMERICAS, 30TH FLOOR, NEW YORK NY 10105
Gip Iii Zephyr Midco Holdings, L.p. director, 10 percent owner C/O GLOBAL INFRASTRUCTURE PARTNERS, 1345 AVENUE OF THE AMERICAS, 30TH FLOOR, NEW YORK NY 10105
Michael Taft Murphy officer: CHIEF INVESTMENT OFFICER 300 CARNEGIE CENTER, SUITE 300, PRINCETON NJ 08540
Jennifer Elaine Lowry director 2 HOLLINS AVE, BALTIMORE MD 21210
E Stanley Oneal director MERRILL LYNCH CORPORATE SECRETARY, 222 BROADWAY, 17TH FLOOR, NEW YORK NY 10038