The AES Corporation

AI-generated fair value estimate for this company.

Method: 10-year parent-level FCFE (cash-available-to-equity) DCF: $1,219M FY2025 Parent Free Cash Flow (AES's own metric for cash available to common equityholders after subsidiary distributions net of parent interest, opex and tax) grown 6%/yr years 1-5 and 4%/yr years 6-10, 2.5% terminal growth, discounted at an 11% cost of equity (EM/FX and holdco-leverage risk premium); PV of years 1-10 ~$9.3B + PV of terminal value ~$8.4B = ~$17.7B total equity value divided by 713.44M shares ~$24.88/share.

Reasoning: AES's consolidated free cash flow is deeply negative (TTM -$1.7B) because most growth capex is financed with non-recourse project-level debt, so a standard consolidated unlevered-FCF DCF would badly understate equity value; discounting AES's own Parent Free Cash Flow is the standard and most appropriate approach for a renewables/regulated-utility holding company structured this way.