The AES Corporation

NYSE:AES Stock Report

Market Cap: US$10.9b

AES Valuation

Is AES undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

US$19.28
Fair Value
25.9% undervalued intrinsic discount
11
Number of Analysts

Below Fair Value: AES ($14.29) is trading below our estimate of fair value ($19.28)

Significantly Below Fair Value: AES is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AES?

Key metric: As AES is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AES. This is calculated by dividing AES's market cap by their current earnings.
What is AES's PE Ratio?
PE Ratio11.1x
EarningsUS$919.00m
Market CapUS$10.94b

Price to Earnings Ratio vs Peers

How does AES's PE Ratio compare to its peers?

The above table shows the PE ratio for AES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average56.9x
TLN Talen Energy
106x49.57%US$19.5b
VST Vistra
31.3x17.27%US$68.3b
CWEN.A Clearway Energy
43.9x24.67%US$5.9b
ORA Ormat Technologies
46.2x9.86%US$6.1b
AES AES
11.1x13.47%US$10.9b

Price-To-Earnings vs Peers: AES is good value based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (56.9x).

Price to Earnings Ratio vs Industry

How does AES's PE Ratio compare vs other companies in the Global Renewable Energy Industry?

13 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AES 11.1xIndustry Avg. 16.0xNo. of Companies50PE01632486480+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AES is good value based on its Price-To-Earnings Ratio (11.1x) compared to the Global Renewable Energy industry average (16x).

Price to Earnings Ratio vs Fair Ratio

What is AES's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.1x
Fair PE Ratio29.1x

Price-To-Earnings vs Fair Ratio: AES is good value based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (29.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AES forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$14.29
US$13.73
-3.94%
30.76%US$23.00US$5.00n/a11
Sep ’26US$13.54
US$13.83
+2.17%
29.34%US$23.00US$5.00n/a12
Aug ’26US$13.23
US$13.83
+4.56%
29.34%US$23.00US$5.00n/a12
Jul ’26US$10.77
US$13.67
+26.90%
29.92%US$23.00US$5.00n/a12
Jun ’26US$10.09
US$13.71
+35.86%
28.68%US$23.00US$5.00n/a13
May ’26US$9.95
US$14.63
+47.05%
29.30%US$23.00US$7.00n/a13
Apr ’26US$12.37
US$15.02
+21.39%
27.12%US$23.00US$7.00n/a13
Mar ’26US$11.59
US$15.68
+35.33%
23.28%US$23.00US$11.00n/a12
Feb ’26US$11.00
US$16.43
+49.40%
24.08%US$25.00US$11.00n/a12
Jan ’26US$12.87
US$18.25
+41.78%
21.42%US$25.00US$11.00n/a13
Dec ’25US$13.04
US$20.36
+56.13%
19.30%US$25.00US$11.00n/a12
Nov ’25US$14.71
US$21.76
+47.90%
12.23%US$25.00US$16.00n/a11
Oct ’25US$20.24
US$22.20
+9.68%
9.41%US$25.00US$18.00US$15.3710
Sep ’25US$17.13
US$22.44
+31.02%
9.18%US$25.00US$18.00US$13.549
Aug ’25US$17.91
US$22.67
+26.56%
8.32%US$25.00US$18.00US$13.239
Jul ’25US$17.44
US$22.78
+30.61%
8.22%US$25.00US$18.00US$10.779
Jun ’25US$21.59
US$22.03
+2.04%
11.13%US$25.00US$16.00US$10.0910
May ’25US$18.17
US$21.44
+18.01%
10.72%US$25.00US$16.00US$9.9512
Apr ’25US$18.07
US$21.28
+17.74%
11.42%US$25.00US$16.00US$12.3712
Mar ’25US$15.47
US$21.44
+38.61%
11.21%US$25.00US$16.00US$11.5912
Feb ’25US$17.16
US$21.61
+25.93%
12.04%US$26.00US$16.00US$11.0012
Jan ’25US$19.25
US$21.57
+12.04%
13.26%US$26.00US$16.00US$12.8712
Dec ’24US$18.13
US$20.95
+15.58%
15.65%US$26.00US$16.00US$13.0411
Nov ’24US$14.85
US$21.09
+42.03%
24.38%US$30.00US$14.00US$14.7111
Oct ’24US$15.20
US$25.09
+65.07%
12.77%US$30.00US$20.00US$20.2411
US$13.73
Fair Value
4.1% overvalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/02 10:36
End of Day Share Price 2025/10/02 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The AES Corporation is covered by 24 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Gary HovisArgus Research Company
Daniel FordBarclays
Nicholas CampanellaBarclays