Constellation Energy Corporation

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $2,200M normalized FCF base (above the $295M TTM figure, which is depressed by elevated growth capex for nuclear uprates and data-center power-purchase buildout; OCF is $4,206M TTM); 11% annual FCF growth yrs 1-5 (ramping long-term data-center PPAs, e.g. Microsoft/Three Mile Island); 5.5% yrs 6-10; 7.2% discount rate (reflecting largely contracted/regulated-like nuclear cash flows); 3% terminal growth; $24,003M net debt ($24,700M debt vs. $697M cash); 354.31M shares outstanding.

Reasoning: Constellation's current heavy capex is building contracted, premium-priced power supply for AI data centers, so normalizing FCF above the depressed TTM figure and crediting double-digit near-term growth is appropriate, but the stock's current price appears to assume an even more aggressive data-center power re-rating than this disciplined DCF supports.