What Is AES Fair Value?
AES Corporation (AES) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, AES Corporation (AES) has a composite fair value estimate of $20.88 based on four valuation models: DCF (0% weight), Graham Number (50% weight), PEG (50% weight), and DDM (0% weight). The current market price is $14.96, suggesting the stock is undervalued by 39.6%.
Data as of October 14, 2026 (today)
Composite Fair Value
Undervalued2 of 4 models$20.88
vs. current price of $14.96(+39.6%)
How Is AES Fair Value Calculated?
Four independent models estimate what AES is worth. Each uses different inputs and assumptions. The composite blends them by weight.
AES Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
0% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
N/A
Overvalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
AES Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
50% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$18.89
+26.3%Undervalued
Inputs used
PEG (Price/Earnings to Growth)
50% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$22.88
+52.9%Undervalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $696.1M | $660.7M |
| Year 2 | $710.1M | $639.6M |
| Year 3 | $724.3M | $619.1M |
| Year 4 | $738.8M | $599.3M |
| Year 5 | $753.5M | $580.2M |
| Year 6 | $768.6M | $561.6M |
| Year 7 | $784.0M | $543.7M |
| Year 8 | $799.7M | $526.3M |
| Year 9 | $815.7M | $509.5M |
| Year 10 | $832.0M | $493.2M |
| Terminal Value | $29.73B | $17.63B |
What Are AES's Key Financial Metrics?
Earnings & Growth
Current Price
$14.96
EPS (TTM)
$2.67
Forward P/E
6.3
Profit Margin
14.3%
Cash & Balance Sheet
Free Cash Flow
-3.1B
EBITDA
4.1B
Book Value
$6.93
Total Debt
32.9B
What Do Analysts Say About AES?
Low
$15.00
Average
$15.00
High
$15.00
Upside
+0.3%
AES Fair Value FAQ
What is the fair value of AES?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), AES's estimated fair value is $20.88. The stock is currently trading at $14.96, which makes it undervalued by our analysis.
How is AES's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is AES overvalued or undervalued?
Based on our analysis, AES is undervalued. The current price of $14.96 is 39.6% below our estimated fair value of $20.88.
What do Wall Street analysts say about AES?
8 analysts cover AES Corporation with a consensus rating of "Hold." The average price target is $15.00, ranging from $15.00 to $15.00. This implies 0.3% upside from the current price.