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%.
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.
Peter Lynch's formula is:
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 | ||||||
12-2020 | 12-2021 | 12-2022 | 12-2023 | 12-2024 | 5Y Avg | |
Net income | 782.5 | 264.86 | -211.99 | 28.67 | -1,380.52 | -103 |
YoY growth | 47.4% | -66.2% | -180% | 113.5% | -4914.5% | -1000% |
Market Cap (mil) | EPS | Fair Value | Upside | ||
a | |||||
Algonquin Power & Utilities Corp | 6,119 | -1.7 | -11.37 | -242.7% | |
Ameren Corp | 26,001 | 4.5 | 33.31 | -65.4% | |
NiSource Inc | 18,626 | 1.8 | 46.22 | 16.8% | |
A2A SpA | 6,858 | 0.4 | 9.19 | 319.9% | |
Canadian Utilities Ltd | 7,773 | 2.3 | 11.56 | -69.5% | |
Black Hills Corp | 4,128 | 3.9 | 25.44 | -55.3% | |
Atco Ltd | 5,606 | 3.8 | 18.99 | -61.9% | |
MDU Resources Group Inc | 3,384 | 1.3 | 6.42 | -61.3% | |
NorthWestern Corp | 3,220 | 3.8 | 19.22 | -63.4% | |
Avista Corp | 3,062 | 2.3 | 11.64 | -69.4% | |
Unitil Corp | 833 | 2.9 | 14.58 | -71.6% |
Market Cap (mil) | 6,119 |
P/E | - |
Forward P/E | 34.7x |
EPS | -1.67 |
Avg earnings growth rate | -1000% |
TTM earnings | -1,284 |
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.