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What do the Fundamentals Predict for Clearway Energy Inc Class C (CWEN) Stock?

Friday, October 15, 2021 02:07 PM | InvestorsObserver Analysts

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What do the Fundamentals Predict for Clearway Energy Inc Class C (CWEN) Stock?

Clearway Energy Inc Class C (CWEN) receives a strong valuation score of 89 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. CWEN holds a better value than 89% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 89
CWEN gets a 89 Valuation Rank today. Find out what this means to you and get the rest of the rankings on CWEN!

Metrics Analysis

CWEN has a trailing twelve month Price to Earnings (PE) ratio of 85.2 which places it above the histroical average of roughly 15. CWEN is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. CWEN's trailing-12-month earnings per share (EPS) of 0.07 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. CWEN's 12-month-forward PE to Growth (PEG) ratio of 1.2 is considered a roughly average value as the market is valuing CWEN right in line with its projected earnings growth. CWEN's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

All together these valuation metrics paint a pretty adequate picture for CWEN at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for CWEN are around the average of the market resulting in a valuation score of 89. Click Here to get the full Report on Clearway Energy Inc Class C (CWEN) stock.

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