X
<

Recent Changes in Calpine's Key Indicators

PART:
1 2 3 4
Part 3
Recent Changes in Calpine's Key Indicators PART 3 OF 4

How Calpine Stock Is Valued Compared to Its Peers

Calpine’s valuation

In this part of the series, we’ll see how Calpine (CPN) stock is valued compared to its peers. On March 27, 2017, CPN stock was trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple of 10.0x. US utilities’ (XLU) average multiple is just above 10.0x.

How Calpine Stock Is Valued Compared to Its Peers

Interested in NRG? Don't miss the next report.

Receive e-mail alerts for new research on NRG

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

An EV-to-EBITDA ratio provides a comparative idea of a company’s valuation, regardless of its capital structure. EV is the combination of a company’s market capitalization and debt minus its cash holdings.

In comparison, NRG Energy (NRG) and Dynegy (DYN) are currently trading at an EV-to-EBITDA valuation multiple near 10.0x and 9.0x, respectively. Both companies seem to be trading at a fair valuation compared to the industry average.

When it disclosed its stake in NRG Energy, Elliott Management claimed that NRG is “deeply undervalued.” For more information, please read Is NRG Energy Really Deeply Undervalued?

X

Please select a profession that best describes you: