Alliance Resource Partners, L.P.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF on normalized FCF: $342.62M TTM base; 0% growth years 1-5, -2% years 6-10 (reflecting structural, long-term decline in thermal coal demand only partly offset by royalty/diversification segments); 11% discount rate; -2% terminal growth; -$479.68M net debt; 128.66M units.

Reasoning: Alliance Resource Partners generates strong current cash flow but operates in a structurally declining coal industry, so a DCF with flat near-term and modestly declining long-term cash flows, discounted at a rate reflecting commodity and secular-decline risk, is more defensible than assuming perpetual growth.