Clearway Energy, Inc.

CWEN ·Utilities, Utilities - Regulated Electric, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $43.10
Market Price $29.60
Undervalued By 31.3%

Method: 10-year dividend/CAFD discount model: starting 2026 CAFD/share $2.19 (company 2026 guidance midpoint $450M / 205.27M shares); grows to management's $3.00/share 2030 CAFD target (8.2%/yr implied, years 1-4); 5% CAFD/share growth years 5-10 (within management's guided 5-8%+ post-2030 range); 9.5% discount rate; 2.5% terminal growth; 205.27M shares outstanding.

Reasoning: Clearway Energy is a renewable-power yieldco whose value to equity holders is best captured by discounting per-share Cash Available for Distribution (post-debt-service cash flow) rather than unlevered FCF, using management's own published CAFD targets as the growth anchor and a discount rate reflecting equity/rate risk.