What is BEP.UN.TO's Intrinsic value?

Brookfield Renewable Partners LP (BEP.UN.TO) Intrinsic Value Analysis

Executive Summary

As of May 29, 2025, Brookfield Renewable Partners LP's estimated intrinsic value ranges from $0.00 to $0.00 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside

Is Brookfield Renewable Partners LP (BEP.UN.TO) undervalued or overvalued?

With the current market price at $33.00, the stock appears to be significantly overvalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Brookfield Renewable Partners LP's intrinsic value, including:

Weighted Average Cost of Capital (WACC)

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 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.53 0.81
Cost of equity 5.8% 9.1%
Cost of debt 5.3% 20.2%
Tax rate 19.5% 46.8%
Debt/Equity ratio 5.3 5.3
After-tax WACC 4.5% 10.5%

Valuation Methods

Key Financial Metrics

Metric Value
Market Capitalization $9402M
Enterprise Value $56169M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 11.25
Current Dividend Yield 699.21%
Dividend Growth Rate (5Y) 1.94%
Debt-to-Equity Ratio 5.30

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Weighted Average 100% $0.00

Investment Conclusion

Based on our comprehensive valuation analysis, Brookfield Renewable Partners LP's weighted average intrinsic value is $0.00, which is approximately 100.0% below the current market price of $33.00.

Key investment considerations:

  • Strong projected earnings growth (0% to 1% margin)
  • Consistent cash flow generation
  • Historical dividend growth of 1.94%

Given these factors, we believe Brookfield Renewable Partners LP is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.