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    Clearway Energy (CWEN) Could Be 29% Undervalued On Mixed Earnings And Revenue Outlook

    Simply Wall St·09/26/2026 21:24:42
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    Clearway Energy (CWEN) has come under pressure after a recent 3.09% share price drop, as traders weigh expectations for a sharp year-over-year decline in earnings per share alongside projected revenue growth.

    That 3.09% drop sits on top of a weaker recent pattern for Clearway Energy, with the 30-day share price return down 8.32% and the 90-day move down 19.23%, even as the latest 1-year total shareholder return of 9.77% and 3-year total shareholder return of 67.42% point to longer term holders still being ahead overall.

    Scan beyond Clearway Energy's recent setback and compare it with a hand-picked 30 resilient stocks with low risk scores that may better fit your tolerance for choppy earnings and mixed sentiment.

    Clearway Energy now trades well below recent highs after that sharp slide, even as longer term holders still sit on gains. Does it make more sense to step in here, or to wait for a deeper markdown before doing the valuation work?

    Most Popular Narrative: 29% Undervalued

    Against Clearway Energy's last close of $29.77, the most followed narrative frames a fair value of $42.08, which points to a sizeable valuation gap that hinges on how credible its growth projects and contracts really are.

    The 29 GW development pipeline and over 35 GWh of standalone and paired storage projects are seen as important long term growth drivers that can support higher cash flow over time if execution stays on track.

    Some bullish analysts view the stock as a useful way to gain exposure to power demand tied to large load users such as hyperscalers, which they associate with "positive underlying growth trends" across the broader power and utilities sector.

    See why 8 investors see Clearway Energy as 29% undervalued.

    Behind that $42.08 fair value sits a discount rate of 9.78%, revenue growth assumptions of 11.27% a year and a projected net margin of 5.08%. These figures feed into a model that treats Clearway Energy's contracted renewables and storage pipeline as the main driver of long term earnings power.

    Result: Fair Value of $42.08 (UNDERVALUED)

    Still, Clearway Energy's story can change quickly if data center demand underdelivers or if policy shifts slow project completions and squeeze future contracted cash flows.

    Find out about the key risks to this Clearway Energy narrative.

    Another View on Clearway Energy's Valuation

    The first narrative frames Clearway Energy as undervalued, yet the pricing on its earnings tells a different story. The stock trades on a P/E of 35.7x, compared with 14.9x for the global renewable energy group and 34x for peers, while the fair ratio sits lower at 28.7x. That gap implies investors are already paying up for future execution, so how comfortable are you with that premium if growth or margins slip?

    For a closer look at what those earnings multiples could mean over time, and how they might adjust if sentiment cools, See what the numbers say about this price — find out in our valuation breakdown..

    NYSE:CWEN P/E Ratio as at Sep 2026
    NYSE:CWEN P/E Ratio as at Sep 2026

    Next Steps

    Conflicted by Clearway Energy's mix of pressure and optimism today. Move quickly, review the full picture, and weigh the 3 key rewards and 3 important warning signs.

    Looking for more investment ideas beyond Clearway Energy?

    Do not stop with one ticker when plenty of other opportunities might fit your goals better. Put a little time into idea generation now so future you is not wishing you had.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.