Allete Stock Valuation

ALE
 Stock
  

USD 63.31  1.13  1.82%   

What is the value of Allete today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Allete, is its stock price multiplied by the total number of shares outstanding, calculating Allete's enterprise value requires a different approach. It uses Allete's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of August 12, 2022, Free Cash Flow is expected to decline to about (215.3 M). In addition to that, Enterprise Value is expected to decline to about 5.3 B.
Allete Inc shows a prevailing Real Value of $66.97 per share. The current price of the firm is $63.31. At this time, the firm appears to be undervalued. Our model approximates the value of Allete Inc from analyzing the firm fundamentals such as Current Valuation of 5.91 B, return on equity of 4.70 %, and Profit Margin of 12.55 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Allete Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Allete's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Allete Most Recent Valuation Data

Price Book
1.33
EPS Estimate Next Quarter
0.74
Price Sales
2.4
Forward Annual Dividend Yield
0.0425
EBITDA
393.6 M
Dividend Share
2.56
Ex Dividend Date
2022-08-12
Undervalued
Today 63.31
Please note that Allete's price fluctuation is very steady at this time. Calculation of the real value of Allete Inc is based on 3 months time horizon. Increasing Allete's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Allete Inc is useful when determining the fair value of the Allete stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Allete. Since Allete is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Allete Stock. However, Allete's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
66.97
Real Value
68.38
Upside
Estimating the potential upside or downside of Allete Inc helps investors to forecast how Allete stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Allete more accurately as focusing exclusively on Allete's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
3.153.153.15
Details
Hype
Prediction
LowEstimated ValueHigh
61.9063.3164.72
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.811.891.97
Details
4 Analysts
Consensus
LowTarget PriceHigh
65.0072.2584.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Allete's intrinsic value based on its ongoing forecasts of Allete's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Allete's closest peers. When choosing an evaluation method for Allete Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Allete Investments

299.92 Million

Allete Valuation Drivers Correlation

Many accounts on the financial statements of Allete Inc are highly interrelated and sometimes correlated. Consequently, when conducting Allete's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Allete
Click cells to compare fundamentals

Allete Valuation Trend

Knowing Allete's actual value is paramount for traders to make sound investment determinations. Allete's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Allete's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Allete's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Allete Market Cap

Allete Inc is rated below average in market capitalization category among related companies. Market capitalization of Utilities—Diversified industry is presently estimated at about 1.3 Trillion. Allete adds roughly 3.29 Billion in market capitalization claiming only tiny portion of Utilities—Diversified industry.
Capitalization  Valuation  Revenue  Total debt  Workforce

Allete Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Allete's current stock value. Our valuation model uses many indicators to compare Allete value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Allete competition to find correlations between indicators driving Allete's intrinsic value. More Info.
Allete Inc is rated below average in beta category among related companies. It is rated below average in five year return category among related companies reporting about  5.72  of Five Year Return per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Allete by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Allete's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Allete's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Allete's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Allete and how it compares across the competition.

About Allete Valuation

The equity valuation mechanism determines the current worth of Allete Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Allete Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Allete Inc based exclusively on its fundamental and basic technical indicators. By analyzing Allete's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Allete's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Allete. We calculate exposure to Allete's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Allete's related companies.
Fiscal Year End
December
Industry
Utilities-Diversified
Concentration
Electric Utilities
Full Time Employees
1.4 K
Service Category
Electric Utilities
Employer Id Number
41-0418150
Last ReportedProjected for 2022
Gross Profit383 M404.3 M
Profit Margin 0.12  0.13 
The company operates through Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments. ALLETE, Inc. was incorporated in 1906 and is headquartered in Duluth, Minnesota. Allete operates under UtilitiesDiversified classification in the United States and is traded on New York Stock Exchange. It employs 1346 people.

Allete Quarterly Enterprise Value

5.02 Billion

Allete's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Allete's value is low or high relative to the company's performance and growth projections. Determining the market value of Allete can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Allete represents a small ownership stake in the entity. As a stockholder of Allete, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Allete Dividends Analysis For Valuation

The current year Dividends per Basic Common Share is expected to grow to 2.55, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (142.3 M). . Allete Earnings per Basic Share are projected to increase slightly based on the last few years of reporting. The past year's Earnings per Basic Share were at 3.23. The current year Earnings per Diluted Share is expected to grow to 3.48, whereas Accumulated Retained Earnings Deficit are forecasted to decline to about 849.4 M.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-131.9 M-142.3 M
Dividend Yield 0.038  0.0353 
Dividends per Basic Common Share 2.52  2.55 
There are various types of dividends Allete can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Allete shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Allete Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Allete pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Allete by the value of the dividends paid out.

Allete Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Allete does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.32
Earnings Quarterly Growth28.00%
Revenue Growth13.10%
Payout Ratio72.99%
Enterprise Value To Ebitda14.66
Earnings Growth25.30%
Enterprise Value To Revenue4.03

Allete Current Valuation Indicators

Valuation refers to the process of determining the present value of Allete Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Allete we look at many different elements of the entity such as Allete's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Allete's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Allete's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Allete, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Allete's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Allete's worth.
Please continue to Trending Equities. Note that the Allete Inc information on this page should be used as a complementary analysis to other Allete's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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When running Allete Inc price analysis, check to measure Allete's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Allete is operating at the current time. Most of Allete's value examination focuses on studying past and present price action to predict the probability of Allete's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Allete's price. Additionally, you may evaluate how the addition of Allete to your portfolios can decrease your overall portfolio volatility.
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Is Allete's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allete. If investors know Allete will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allete listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.26
Market Capitalization
3.6 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0149
Return On Equity
0.0452
The market value of Allete Inc is measured differently than its book value, which is the value of Allete that is recorded on the company's balance sheet. Investors also form their own opinion of Allete's value that differs from its market value or its book value, called intrinsic value, which is Allete's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allete's market value can be influenced by many factors that don't directly affect Allete's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Allete's value and its price as these two are different measures arrived at by different means. Investors typically determine Allete value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allete's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.