Brookfield Renewable Partners L.P. (BEP) Stock Valuation — PE Analysis
Renewable Utilities · NYSE
Current Price
$34.32
PE Ratio (TTM)
54.2x
Intrinsic Value
$21.95
-56.4% margin of safety
COMPETITIVE MOAT
↑Scale and Diversification
BEP's vast portfolio of renewable assets across hydro, wind, and solar provides significant operational scale. Diversification across geographies and technologies mitigates risks from any single asset or region.
↑Long-Term Contracts
The company secures revenue through long-term power purchase agreements (PPAs). These contracts offer predictable cash flows and insulate BEP from short-term energy price volatility.
↑First-Mover Advantage
BEP has established a substantial operational footprint in renewable energy. This early market entry creates barriers for new competitors seeking to acquire prime development sites and secure PPAs.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a capital-intensive business, BEP is susceptible to rising interest rates. Higher borrowing costs can impact profitability and the attractiveness of its dividend yield.
↓Regulatory and Policy Changes
Government policies and regulations surrounding renewable energy can shift. Unfavorable changes in subsidies, tax credits, or environmental standards could negatively affect BEP's operations.
↓Geopolitical and Commodity Price Volatility
While BEP benefits from long-term contracts, broader geopolitical events can indirectly impact its business. Elevated oil prices, for instance, can influence overall energy market sentiment and investor perception.
Base case
BEP base case PE valuation
A base case PE valuation for BEP estimates a fair value of about $21.95 per share, against a current price of $34.32. The model assumes 0.0% annual earnings growth, a 50x target PE multiple, and a 10% discount rate.
Intrinsic Value
$21.95
Margin of safety
-56.4%
Expected annual return
-8.6%
Base case assumptions: 0.0% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the BEP PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Brookfield Renewable Partners L.P. respond.
Open PE Calculator for BEPCompany Overview
Brookfield Renewable Partners L.P. (BEP) oversees a substantial collection of facilities that produce clean energy, primarily situated across North America, Colombia, Brazil, various European countries, India, and China. This enterprise generates electricity using a diverse range of renewable technologies, such as hydroelectric power, wind farms, solar installations, distributed energy systems, pumped-hydro storage, cogeneration, and biomass. Their extensive portfolio collectively boasts an approximate installed capacity of 21,000 megawatts. Brookfield Renewable Partners Limited acts as the general partner for BEP. Founded in 1999 and headquartered in Hamilton, Bermuda, the company changed its name from Brookfield Renewable Energy Partners L.P. to its current title in May 2016.
Financial Metrics — BEP PE Stock Valuation Data
PE Ratio (TTM)
54.2x
PEG Ratio
0.28
Earnings Yield
1.84%
ROE (TTM)
2.9%
Revenue/Share (TTM)
$21.00
Dividend Yield
4.46%
Debt/Equity
8.73x
Frequently Asked Questions
What is the PE ratio of BEP?
The trailing twelve-month PE ratio of BEP reflects how much investors pay per dollar of Brookfield Renewable Partners L.P.'s earnings. This metric is most useful when compared to Renewable Utilities peers and the company's own historical range.
Is BEP overvalued based on PE ratio?
BEP's PE of 54.2x combined with a PEG ratio of 0.28 provides a growth-adjusted perspective. A PEG below 1.0 suggests BEP may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Renewable Utilities, a DCF analysis may be more appropriate.
How do I value BEP stock using PE ratio?
To value Brookfield Renewable Partners L.P. using PE: (1) Compare the current PE (54.2x) against the Renewable Utilities median to assess relative pricing, (2) check the PEG ratio (0.28) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of BEP?
BEP's PEG ratio is 0.28, calculated by dividing the PE ratio (54.2x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for BEP stock valuation?
PE ratio gives a quick relative read — how BEP is priced versus Renewable Utilities peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See BEP DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Utilities valuationsP/E and DCF value BEP with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.