Assessing AES (AES) Valuation As Conflicting Narratives Clash Over Fair Value And Recent Momentum

Simply Wall St.02-24 11:21

AdvertisementWhy AES (AES) is on investor radar today AES (AES) has drawn attention after recent share price moves, with the stock closing at $16.26. Investors are weighing how its current valuation ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2613576565?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9551703-choice2-main-header/1585186877637","is_english":true,"pubTime":"2026-02-24 11:21","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2613576565","market":"sg","top_or_hot":-1,"title":"Assessing AES (AES) Valuation As Conflicting Narratives Clash Over Fair Value And Recent Momentum","media":"Simply Wall St.","content":"<div>\n<p>AdvertisementWhy AES (AES) is on investor radar today AES (AES) has drawn attention after recent share price moves, with the stock closing at $16.26. Investors are weighing how its current valuation ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-aes/aes/news/assessing-aes-aes-valuation-as-conflicting-narratives-clash\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Assessing AES (AES) Valuation As Conflicting Narratives Clash Over Fair Value And Recent Momentum</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing AES (AES) Valuation As Conflicting Narratives Clash Over Fair Value And Recent Momentum\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-24 11:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/utilities/nyse-aes/aes/news/assessing-aes-aes-valuation-as-conflicting-narratives-clash><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AdvertisementWhy AES (AES) is on investor radar today AES (AES) has drawn attention after recent share price moves, with the stock closing at $16.26. Investors are weighing how its current valuation ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/utilities/nyse-aes/aes/news/assessing-aes-aes-valuation-as-conflicting-narratives-clash\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1093756325.SGD","symbol_name":"FTIF - Franklin K2 Alt Strat Fd A (acc) SGD-H1","start_time":0,"source_url":"https://simplywall.st/stocks/us/utilities/nyse-aes/aes/news/assessing-aes-aes-valuation-as-conflicting-narratives-clash","article_id":"2613576565","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551703-choice2-main-header/1585186877637"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/utilities/nyse-aes/aes/news/assessing-aes-aes-valuation-as-conflicting-narratives-clash","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2613576565","pubTimestamp":1771903273,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Why AES (AES) is on investor radar today\nAES (AES) has drawn attention after recent share price moves, with the stock closing at $16.26. Investors are weighing how its current valuation compares with its earnings, cash flows, and overall utility profile.\nSee our latest analysis for AES.\nWhile the 1 day share price return of AES shows a small pullback, the 1 month and 3 month share price returns of 14.1% and 17.7% point to improving momentum, even as the 5 year total shareholder return of a...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1093756325.SGD":"FTIF - Franklin K2 Alt Strat Fd A (acc) SGD-H1","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","BK4588":"碎股","BK4585":"ETF&股票定投概念","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","BK4105":"独立电力生产商与能源贸易商","IE00B7SZLL34.SGD":"Legg Mason ClearBridge - Value A Acc SGD-H","LU1093756168.USD":"FRANKLIN K2 ALTERNATIVE STRATEGIES \"A\" (USD) ACC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","AES":"爱依斯电力","BK4519":"光伏太阳能"},"translate_title":"评估AES(AES)估值，因为公允价值和近期势头存在冲突","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AES":1.5},"content_text":"AdvertisementWhy AES (AES) is on investor radar today AES (AES) has drawn attention after recent share price moves, with the stock closing at $16.26. Investors are weighing how its current valuation compares with its earnings, cash flows, and overall utility profile. See our latest analysis for AES. While the 1 day share price return of AES shows a small pullback, the 1 month and 3 month share price returns of 14.1% and 17.7% point to improving momentum, even as the 5 year total shareholder return of a 27.2% loss highlights how long term holders have had a different experience. If this move in a power and utilities name has you thinking about the energy transition, you may also want to look at 85 nuclear energy infrastructure stocks as another way to scan the market. So with AES trading around $16.26, sitting on a 60.4% 1 year total return yet a 27.2% 5 year loss and an intrinsic discount of 17.7%, is the market offering a reset entry point or already baking in future growth? Most Popular Narrative: 126.8% Overvalued According to the most followed narrative, AES has a fair value of $7.17, which sits well below the recent $16.26 share price, creating a wide valuation gap that hinges on specific earnings and margin assumptions.  AES 02/13/25 $10.15 $31.20 $33.75 $15.20 Quarterly $0.180 $0.700 1/31/2025 Dividend Yield 6.98% 29.74% MSN Barchart article $11 $18 $25 90% Bullish 10@$10 Utilities Electrical Utilities & IPPs Employees 9,600 Founded 1981 The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass Death Cross 8/1/2024 MB 2/13/2025 AES has received a consensus rating of Moderate Buy&Earnings for AES are expected to grow by 4.66% in the coming year, from $1.93 to $2.02 per share&93.13% of the stock of AES is held by institutions SWS 2/13/2025 Snowflake Analysis Undervalued established dividend payer&Trading at 70% below our estimate of its fair value&Earnings are forecast to grow 12.49% per year&Became profitable this year&Trading at good value compared to peers and industry TipRanks 2/13/2025 strong Buy 9  Read the complete narrative. Want to see why one narrative can call AES undervalued while another pegs fair value far below today’s price? Earnings growth, profit margins and required returns all pull in different directions. The full story sits in those assumptions, not the headline number. Result: Fair Value of $7.17 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this bearish fair value view could be tested if AES sustains its recent net income growth, or if sentiment shifts around its energy transition exposure. Find out about the key risks to this AES narrative. Another View: Earnings Multiple Sends a Different Signal While the user narrative points to a fair value of $7.17 and calls AES overvalued, the current P/E of 10.7x looks far cheaper than both peers at 50.6x and the fair ratio of 29.3x. That gap could hint at valuation risk or opportunity, depending on which story you trust more. See what the numbers say about this price — find out in our valuation breakdown. NYSE:AES P/E Ratio as at Feb 2026Next Steps If this mix of caution and optimism leaves you unsure, review the data yourself and act promptly to form your own view, starting with 3 key rewards and 3 important warning signs. Looking for more investment ideas? If AES has sharpened your focus, do not stop here. The market holds plenty of other angles that could better match your goals and risk comfort.  Target steadier compounding by scanning companies that look underpriced with stronger quality markers through our 56 high quality undervalued stocks built from fundamental data. Strengthen your income stream by checking out reliable payers highlighted in our 15 dividend fortresses with yields that stand out against the wider market. Prioritise resilience by reviewing companies flagged in our 80 resilient stocks with low risk scores where balance sheets and risk scores are screened with discipline.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2613576565","isCrawlerRequest":true}