AltaGas Ltd. (ALA.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-18.2%

CA$45.09

vs CA$55.10 price

Levered DCF

CA$42.06

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.16

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.88×	17.17×	12.27×	16.46×	33.3×	10.76×	7.12×	-7.13×
P/B	1.41×	1.14×	1.02×	0.88×	1.1×	0.74×	0.76×	0.44×
P/S	1×	0.8×	0.61×	0.46×	0.72×	0.93×	0.99×	0.74×
EV / EBITDA	11.42×	12.64×	10.43×	11.34×	11.6×	10.34×	8.87×	-4,386.51×
Gross margin	24.1%	22.2%	17.5%	19.5%	23.1%	35.7%	33.8%	31.8%
Operating margin	9.3%	8.3%	5.8%	8.6%	8.7%	11.3%	2.7%	-12.6%
Net margin	6.1%	4.8%	5.2%	3.6%	2.7%	9.8%	15.1%	-10.4%
Current ratio	0.82×	0.81×	0.89×	1.36×	0.99×	0.96×	0.7×	0.98×
Debt / equity	1.18×	1.21×	1.28×	1.36×	1.25×	1.23×	1.04×	1.45×
Interest coverage	2.51×	2.26×	1.88×	3.74×	3.35×	2.34×	0.42×	-1.71×
Dividend yield	3.2%	3.7%	4.4%	5.1%	4.7%	6.4%	6.1%	17.4%
Payout ratio	51.8%	62.2%	51.0%	64.6%	125.8%	60.5%	40.1%	-124.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.6%	6.8%	8.7%	7.0%	4.1%	7.8%	11.6%	-6.2%
Return on invested capital	3.7%	3.5%	2.6%	4.6%	3.6%	2.7%	0.8%	-1.6%
Return on assets	2.9%	2.3%	2.9%	2.2%	1.3%	2.6%	4.2%	-1.9%
Free cash flow yield	-2.7%	1.5%	2.3%	-6.4%	-1.0%	-1.3%	-13.1%	-35.8%
Earnings yield	6.1%	6.0%	8.6%	8.0%	3.7%	10.6%	15.2%	-14.1%
Enterprise value	CA$23B	CA$20.4B	CA$17.6B	CA$16.7B	CA$16.3B	CA$13.8B	CA$12.9B	CA$13.2B
Net debt / EBITDA	5.18×	6.49×	5.78×	6.87×	6.16×	6.43×	5.11×	-3,355.13×
Cash conversion cycle (days)	-9	-0	17	30	16	4	5	16