DCF Tool

CWEN

Clearway Energy Inc – Solar Electric Power Generation
Clearway is one of the largest developers and operators of clean energy in the United States with over 5.7 gigawatts of wind, solar, and energy storage in operation, including assets owned through their affiliate company, Clearway Energy, Inc.
Analysis Results
Intrinsic Value $483.37
Latest Price $33.76
Relative Value 93% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.955 0.907
2023 1.08 0.975
2024 1.22 1.05
2025 1.38 1.13
2026 1.57 1.21
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 47.0 billion. This corresponds to a present value of 34.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.27 billion. Adding in the terminal value gives a total present value of 39.7 billion.

There are presently 82.2 million outstanding shares, so the intrinsic value per share is 483.37.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,531,000,000
Current Cash 179,000,000
Current Liabilities 1,631,000,000
Current Debt 772,000,000
Non-Cash Working Capital (NCWC) 493,000,000
Change in NCWC 303,000,000
EBIT 312,000,000
Tax Provision 12,000,000
Depreciation and Amortization 509,000,000
Capital Expenditure -151,000,000
Unlevered Free Cash Flow 973,000,000
Current Assets 708,000,000
Current Cash 268,000,000
Current Liabilities 634,000,000
Current Debt 384,000,000
Non-Cash Working Capital (NCWC) 190,000,000
Change in NCWC -30,000,000
EBIT 373,000,000
Tax Provision 8,000,000
Depreciation and Amortization 428,000,000
Capital Expenditure -124,000,000
Unlevered Free Cash Flow 647,000,000
Current Assets 608,000,000
Current Cash 155,000,000
Current Liabilities 2,057,000,000
Current Debt 1,824,000,000
Non-Cash Working Capital (NCWC) 220,000,000
Change in NCWC 40,000,000
EBIT 343,000,000
Tax Provision -8,000,000
Depreciation and Amortization 396,000,000
Capital Expenditure -228,000,000
Unlevered Free Cash Flow 551,000,000
Current Assets 756,000,000
Current Cash 407,000,000
Current Liabilities 704,000,000
Current Debt 535,000,000
Non-Cash Working Capital (NCWC) 180,000,000
Change in NCWC 26,000,000
EBIT 441,000,000
Tax Provision 62,000,000
Depreciation and Amortization 331,000,000
Capital Expenditure -83,000,000
Unlevered Free Cash Flow 479,293,103
Current Assets 482,000,000
Current Cash 148,000,000
Current Liabilities 486,000,000
Current Debt 306,000,000
Non-Cash Working Capital (NCWC) 154,000,000
Change in NCWC 3,000,000
EBIT 401,000,000
Tax Provision 72,000,000
Depreciation and Amortization 334,000,000
Capital Expenditure -31,000,000
Unlevered Free Cash Flow 635,000,000
Current Assets 645,000,000
Current Cash 317,000,000
Current Liabilities 459,000,000
Current Debt 282,000,000
Non-Cash Working Capital (NCWC) 151,000,000
Change in NCWC 159,000,000
EBIT 439,000,000
Tax Provision -1,000,000
Depreciation and Amortization 300,000,000
Capital Expenditure -20,000,000
Unlevered Free Cash Flow 878,000,000
Current Assets 318,000,000
Current Cash 111,000,000
Current Liabilities 456,000,000
Current Debt 241,000,000
Non-Cash Working Capital (NCWC) -8,000,000
Change in NCWC -19,000,000
EBIT 315,000,000
Tax Provision 12,000,000
Depreciation and Amortization 265,000,000
Capital Expenditure -29,000,000
Unlevered Free Cash Flow 475,582,089
Current Assets 539,000,000
Current Cash 391,000,000
Current Liabilities 297,000,000
Current Debt 160,000,000
Non-Cash Working Capital (NCWC) 11,000,000
Change in NCWC -96,000,000
EBIT 252,000,000
Tax Provision 4,000,000
Depreciation and Amortization 136,000,000
Capital Expenditure -33,000,000
Unlevered Free Cash Flow 247,141,176

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