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Arphra AIPlain-English read on Alliant Energy Corporation’s valuationOverview
Discounted cash flow
Income / accounting-based
Multiples & assets
Scenario
Toolbox
Weighted blend
$42.31
-40.92% vs spot
Sell
Spot price
$71.61
Mkt cap $18.5B
subtle cardAnalyst PT consensus
$75.86
+5.93% vs spot
subtle cardMethods covered
17 / 18
7 in blend
subtle cardFootball field
LNT · fair-value range by method
Method comparison
LNT · fair value by valuation framework
| Method | Category | Fair value | Range | vs spot | Weight | Driver | Conf. |
|---|---|---|---|---|---|---|---|
| DDM · Gordon | ddm | $39.91 | $33.24 – $49.93 | -44.26% | 13.3% | D₁ 1.95, kₑ 7.0%, gₗ 2.0% | med |
| DDM · H-model | ddm | $46.72 | $34.02 – $65.78 | -34.76% | — | D₀ 1.95, g₀=5.5%, gₗ=2.0%, H 5y | med |
| DDM · multi-stage | ddm | $43.25 | $36.77 – $49.74 | -39.60% | 24.0% | 5y schedule 5.5% → 2.0%, kₑ 7.0% | high |
| Residual income | income | $29.98 | $26.39 – $33.58 | -58.13% | 13.3% | BV 27.46, ROE 11.0% → kₑ | high |
| EVA / MVA | income | $58.99 | $51.91 – $66.06 | -17.63% | 6.7% | IC 19.1B, WACC 5.2% | high |
| Justified P/E | multiple | $141.22 | $120.04 – $162.41 | +97.21% | — | Fair P/E 45.0 (payout 64%, kₑ 7.0%, g 5.5%) | med |
| P/E · sector | multiple | $56.52 | $49.74 – $63.30 | -21.07% | 16.0% | EPS 3.14 × peer P/E 18.0 | med |
| Justified P/B | multiple | $101.36 | $86.15 – $116.56 | +41.54% | — | Fair P/B 3.69 · ROE 11.0%, kₑ 7.0% | high |
| P/S · sector | multiple | $35.93 | $30.54 – $41.32 | -49.83% | — | Rev/sh 16.33 × peer P/S 2.20 | med |
| EV / EBITDA | multiple | $39.01 | $34.33 – $43.69 | -45.53% | 20.0% | EBITDA × peer 11.0× − ND 11.8B | high |
| EV / EBIT | multiple | $6.51 | $5.54 – $7.49 | -90.90% | — | EBIT × peer 13.2× − ND | med |
| EV / Sales | multiple | -$13.60 | -$11.56 – -$15.64 | -118.99% | — | Sales × peer 1.87× − ND | med |
| PEG-anchored | multiple | $28.02 | $23.82 – $32.22 | -60.87% | — | PEG=1, fwd EPS g 8.9% | med |
| Earnings power | intrinsic | $29.59 | $26.04 – $33.14 | -58.67% | — | NOPAT / WACC, no growth | med |
| Graham revised | intrinsic | $60.26 | $51.22 – $69.30 | -15.85% | — | EPS×(8.5+2g)·4.4/Y | low |
| Lynch P/E=g | intrinsic | $17.19 | $14.62 – $19.77 | -75.99% | — | PE = g (5.5) | low |
| Book NAV | asset | $27.46 | $26.08 – $28.83 | -61.66% | 6.7% | (Assets − Liabilities) / Shares | high |
| Liquidation | asset | — | — | — | — | Cash 100% + non-cash 70% − Liab. | low |
Cost-of-capital build-up
CAPM cost of equity, after-tax cost of debt, WACC. Risk-free as of 2026-05-12.
| Risk-free rate (US 10y Treasury)rf | 4.46% |
| Equity beta (0.57)β | × 0.57 |
| Equity risk premiumERP | 4.46% |
| Cost of equity (CAPM)kₑ | 6.98% |
| Pre-tax cost of debtkd | 4.15% |
| Effective tax ratet | 0.0% |
| After-tax cost of debt | 4.15% |
| Equity weight$7.3B | 37.3% |
| Debt weight$12.3B | 62.7% |
| WACC | 5.20% |
Growth assumptions
Blended forward growth used as DCF default; terminal pegged to long-run nominal GDP.
| Analyst forward revenue growthFMP | 0.97% |
| Analyst forward EPS growthFMP | 8.92% |
| Historical 5y revenue CAGRFY | 4.42% |
| Historical 5y EPS CAGRFY | 4.53% |
| Sustainable g (ROE × retention)Δ | 3.94% |
| Blended near-term growth (g₀) | 5.48% |
| Terminal growth (gₗ) | 2.00% |
Sources
- FMP /analyst-estimates— 8 rows(as of 2023-12-31)
- Treasury rates · 10y— 4.46% rf(as of 2026-05-12)
- market_risk_premium · DB— 4.46% ERP(as of 2026-05-13)
- Sector multiple defaults— Utilities (live sector PE unavailable)
- FMP /price-target-consensus— mean $75.86
This page is generated by a quantitative valuation engine for research purposes only and does not constitute investment advice. Methodology follows standard CFA / Damodaran frameworks; assumptions are driven by analyst consensus from Financial Modeling Prep and reported financial statements.