Is Boralex an Opportunity After Recent 13% Price Drop and Clean Energy Project Updates?
December 2, 2025
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If you have ever wondered whether Boralex is priced right for opportunity or risk, you are not alone and you are in the right place.
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The stock price recently dipped, dropping 2.0% in the last week and 13.1% over the past month, with a year-to-date move of -15.5%. This suggests that the market’s perception is shifting.
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Recent activity around Boralex has centered on its ongoing renewable energy projects and new developments in the clean energy sector. These developments have brought both attention and volatility to the share price. These headlines highlight the company’s ambitions and provide important context for understanding its recent stock movements.
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According to our valuation scorecard, Boralex scores 4 out of 6 for being undervalued. This suggests there may be interesting value signals to consider. Let’s explore the usual valuation techniques and, later, look at an alternative way to judge if Boralex is truly a bargain.
Find out why Boralex’s -17.0% return over the last year is lagging behind its peers.
A Discounted Cash Flow (DCF) model estimates a company’s value by projecting its future cash flows and then discounting these amounts back to today’s value using an appropriate rate. This method helps investors assess whether the current share price reflects the company’s long-term profit-generating potential.
For Boralex, the current Free Cash Flow (FCF) stands at -CA$22.3 Million, reflecting recent investments and volatility in the sector. Analyst consensus provides FCF projections up to five years out, with a notable improvement expected. By 2029, Boralex’s FCF is projected to reach CA$638 Million. Projections beyond these analyst estimates, such as those up to 2035, are extrapolated to provide a longer-term picture of potential cash flow growth.
Based on Simply Wall St’s two-stage Free Cash Flow to Equity model, this analysis yields an intrinsic value per share of CA$122.80. Notably, this figure suggests Boralex is trading at an 80.1% discount to its estimated fair value. This means the market price is significantly lower than what the cash flow projections imply.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Boralex is undervalued by 80.1%. Track this in your watchlist or portfolio, or discover 928 more undervalued stocks based on cash flows.
For companies like Boralex in the renewable energy sector, the Price-to-Sales (PS) ratio is often considered a reliable valuation gauge. This is especially true when profitability is inconsistent or earnings are volatile, as is often the case with businesses investing heavily for future growth. The PS ratio allows investors to assess how much they are paying for each dollar of revenue, giving a clearer view of valuation when profits are not yet stable.
Growth expectations and risk play a big role in what constitutes a “normal” or “fair” PS ratio. Higher expected sales growth or strong market positioning can justify a higher multiple. Increased business risks or lower growth prospects would typically warrant a lower figure.
Currently, Boralex trades on a PS ratio of 3.0x. This compares to a renewable energy industry average of 2.3x and a peer average of 2.4x. Simply Wall St’s proprietary “Fair Ratio” model, which considers Boralex’s earnings growth, profit margin, industry status, market cap and risk profile, suggests a fair PS ratio of 3.7x for the company.
The Fair Ratio goes beyond simple industry comparisons by accounting for Boralex’s specific outlook and operating conditions. This approach provides a more tailored benchmark and, in this case, indicates that Boralex’s current valuation is actually below what would be justified by these factors.
Result: UNDERVALUED
PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple, dynamic method that connects your view of a company’s future, its story, to your own financial forecasts and a calculated fair value. Rather than relying solely on models and ratios, Narratives let you input your vision for Boralex (for example, what you expect for its revenue growth or profit margins), building a story behind the numbers and expressing exactly why you think Boralex is a buy, hold, or sell.
These Narratives form the backbone of discussion within Simply Wall St’s Community page, where millions of investors share their perspectives. Stories are linked directly to updates in fair value estimates and forecasts. Narratives make investment decisions more accessible and actionable; whenever new news or earnings are released, the fair value and risk conversation automatically update, ensuring your Narrative reflects the latest reality.
For example, one investor may believe Boralex’s steady Québec project pipeline and power production growth justify a bullish fair value of CA$45.00, while another, citing debt risks and volatile European markets, may see a more cautious fair value around CA$33.00. Whichever story you believe, Narratives help you decide. When the fair value you agree with is well above or below today’s market price, you have a strong signal for action.
Do you think there’s more to the story for Boralex? Head over to our Community to see what others are saying!
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.
Companies discussed in this article include BLX.TO.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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