- AES Corp. is an energy company offering smarter energy solutions to over 2.5 million customers in 14 countries.
- The company has stated very clearly in presentations that the company is focused on value creation and shareholder return. The management expects to deliver a 7%-9% growth rate for adjusted EPS.
- A conservative DCF model with a WACC of 6% reveals that the stock could be worth $45, which is more than 30% of the market price.
- The company’s business model appears very predictable with stable free cash flow and revenue growth. In my opinion, the company will be able to negotiate easily with bankers because the risk does not seem significant.
- I am not worried about the company’s financial obligations because AES Corp. has to pay most of its debt after the year 2025.
For further details see:
AES Corporation Stock: Tiny Volatility And Undervalued Energy Play