As of April 4, 2026, Ameren Corp's estimated intrinsic value ranges from $110.24 to $182.32 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $165.21 | +47.9% |
| Discounted Cash Flow (5Y) | $119.99 | +7.4% |
| Dividend Discount Model (Multi-Stage) | $110.24 | -1.3% |
| Dividend Discount Model (Stable) | $120.19 | +7.6% |
| Earnings Power Value | $182.32 | +63.3% |
Is Ameren Corp (AEE) undervalued or overvalued?
With the current market price at $111.68, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Ameren Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.37 | 0.49 |
| Cost of equity | 5.6% | 7.6% |
| Cost of debt | 4.0% | 4.8% |
| Tax rate | 11.6% | 13.6% |
| Debt/Equity ratio | 0.66 | 0.66 |
| After-tax WACC | 4.8% | 6.2% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $120 | $52,983M | 84.6% |
| 10-Year Growth | $165 | $65,485M | 74.0% |
| 5-Year EBITDA | $108 | $49,782M | 83.6% |
| 10-Year EBITDA | $154 | $62,323M | 72.7% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $3,788M |
| Discount Rate (WACC) | 6.2% - 4.8% |
| Enterprise Value | $60,880M - $79,550M |
| Net Debt | $19,817M |
| Equity Value | $41,063M - $59,733M |
| Outstanding Shares | 276M |
| Fair Value | $149 - $216 |
| Selected Fair Value | $182.32 |
| Metric | Value |
|---|---|
| Market Capitalization | $30871M |
| Enterprise Value | $50688M |
| Trailing P/E | 21.20 |
| Forward P/E | 21.31 |
| Trailing EV/EBITDA | 6.70 |
| Current Dividend Yield | 255.55% |
| Dividend Growth Rate (5Y) | 7.98% |
| Debt-to-Equity Ratio | 0.66 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $49.56 |
| Discounted Cash Flow (5Y) | 25% | $30.00 |
| Dividend Discount Model (Multi-Stage) | 20% | $22.05 |
| Dividend Discount Model (Stable) | 15% | $18.03 |
| Earnings Power Value | 10% | $18.23 |
| Weighted Average | 100% | $137.87 |
Based on our comprehensive valuation analysis, Ameren Corp's intrinsic value is $137.87, which is approximately 23.4% above the current market price of $111.68.
Key investment considerations:
Given these factors, we believe Ameren Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.