AQN.TO
Algonquin Power & Utilities Corp
Price:  
7.97 
CAD
Volume:  
431,161
Canada | Multi-Utilities

AQN.TO Fair Value

-242.7 %
Upside

What is the fair value of AQN.TO?

As of 2025-07-12, the Fair Value of Algonquin Power & Utilities Corp (AQN.TO) is -11.37 CAD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 7.97 CAD, the upside of Algonquin Power & Utilities Corp is -242.7%.

Is AQN.TO a good investment?

With the market price of 7.97 CAD and our fair value calculation, Algonquin Power & Utilities Corp (AQN.TO) is not a good investment. Investing in AQN.TO stocks now will result in a potential loss of 242.7%.

Note: valuation result may not be accurate due to the company's negative EPS.

7.97 CAD
Stock Price
-11.37 CAD
Fair Price
FAIR VALUE CALCULATION

AQN.TO Fair Value

Peter Lynch's formula is:

AQN.TO Fair Value
= Earnings Growth Rate x TTM EPS
AQN.TO Fair Value
= 5 x -1.67 USD
AQN.TO Fair Value
= 5 x -2.27 CAD
AQN.TO Fair Value
= -11.37

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income782.5264.86-211.9928.67-1,380.52-103
YoY growth47.4%-66.2%-180%113.5%-4914.5%-1000%

AQN.TO Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Ameren Corp26,0014.533.31-65.4%
NiSource Inc18,6261.846.2216.8%
A2A SpA6,8580.49.19319.9%
Canadian Utilities Ltd7,7732.311.56-69.5%
Black Hills Corp4,1283.925.44-55.3%
Atco Ltd5,6063.818.99-61.9%
MDU Resources Group Inc3,3841.36.42-61.3%
NorthWestern Corp3,2203.819.22-63.4%
Avista Corp3,0622.311.64-69.4%
Unitil Corp8332.914.58-71.6%

AQN.TO Fair Value - Key Data

Market Cap (mil)6,119
P/E-
Forward P/E34.7x
EPS-1.67
Avg earnings growth rate-1000%
TTM earnings-1,284

AQN.TO Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.