Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Alliant Energy Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 0.7% to 8.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 28, DPO 88, DIO 47). At a 5.8% WACC with mid-year discounting, the terminal value (84% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 12.5x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $156.42 per share, suggesting LNT is undervalued by 122.5% at the current price of $70.29.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 1,418 | 1,472 | 1,571 | 1,639 | 1,777 | 1,821 |
| (−) Net Interest | 424 | 440 | 470 | 490 | 532 | 545 |
| (+) D&A | 1,848 | 2,012 | 2,129 | 2,199 | 2,210 | 2,265 |
| EBITDA | 3,690 | 3,924 | 4,170 | 4,328 | 4,518 | 4,631 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 1,991 | 2,067 | 2,207 | 2,301 | 2,495 | — |
| (−) ΔWC | -214 | 2 | 4 | 2 | 5 | — |
| Free Cash Flow (FCF) | 1,913 | 1,855 | 1,960 | 2,025 | 2,018 | — |
| Peers' EBITDA Multiple | 12.5x | |||||
| Terminal Value | 57,937 | |||||
| WACC / Discount Rate | 5.84% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 1,859 | 1,704 | 1,700 | 1,660 | 1,563 | 43,613 |
| Enterprise Value | 52,099 | |||||
| Projection Period | 8,486 | 16.3% | ||||
| Terminal Value | 43,613 | 83.7% | ||||
| (−) Current Net Debt | 11,790 | |||||
| Equity Value | 40,309 | |||||
| (÷) Outstanding Shares | 258M | |||||
| Fair Price | $156 | +122.4% | ||||
| WACC \ EV/EBITDA Exit Multiple | 8.5x | 10.5x | 12.5x | 14.5x | 16.5x |
|---|---|---|---|---|---|
| 3.8% | $115 | $145 | $175 | $205 | $234 |
| 4.8% | $109 | $137 | $165 | $194 | $222 |
| 5.8% | $102 | $129 | $156 | $183 | $211 |
| 6.8% | $96 | $122 | $148 | $174 | $200 |
| 7.8% | $91 | $115 | $140 | $164 | $189 |
Current price: $70.29. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.