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AltaGas Ltd (ALA) Fair Value & Analysis

Energy · CA · Market cap C$17.3B

AL AltaGas Ltd ALA · TO
PriceC$53.88
Fair ValueC$34.51
Upside-36.0%
Quality56/100
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Expensive Growth
Thin margins · 4.1% net margin
Moderate debt · negative free cash flow
2.33% dividend yield
Trails peers (4/14)
Narrow moat 34/100
Evidence: Medium Range C$28.73 – C$43.14 Share as image

Fair value as of: Jul 18, 2026

From 14 valuation models · updated 21 days ago

Share price +0.4% over the past month.

A solid business, but screening 36% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (C$43.14). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

C$57.18 C$19.12 Fair Value C$34.51 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range C$19.12 – C$57.18 · fair‑value band C$28.73 – C$43.14 · the C$53.88 price screens above the C$34.51 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

AltaGas Ltd (ALA) currently trades at C$53.88, while our model-based Fair Value estimate is C$34.51, implying the stock looks roughly 36.0% overvalued today. We read business quality at 56/100 (solid quality), in the Energy sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, AltaGas Ltd generated revenue of C$12.7B at a net margin of 4.1%. It earns a return on equity of 5.5%. Net debt stands at C$10.4B. The stock trades on a trailing P/E of 34.0. Fundamentals as of Jul 18, 2026

Our scenario range runs from C$28.73 (bear case) to C$43.14 (bull case); at C$53.88, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 47% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -35% fair-value upside, at -36%, ALA screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income C$24.24 C$26.29 C$33.60 76
ROIC Compounder C$3.66 C$7.76 72
Growth-Adj P/E C$33.97 C$48.53 C$63.09 68
All 14 models by family
Earnings-Based
Graham-Dodd C$16.76 C$84.50 C$116.67 54
Lynch FV C$22.91 C$32.74 C$42.56 50
PEG = 1.0 C$22.91 C$32.74 C$42.56 46
EPV C$3.66 C$7.76 59
Multiples
P/E Multiple C$36.98 C$49.30 C$61.63 63
P/S Multiple C$31.43 C$41.91 C$52.38 58
P/B Multiple C$31.43 C$41.91 C$52.38 55
EV/EBIT C$21.54 C$38.43 C$55.31 53
EV/EBITDA C$23.81 C$41.45 C$59.09 54
EV/Revenue C$5.03 C$19.67 C$34.30 43
Asset-Based
NCAV (Graham) C$14.31 C$19.17 C$28.61 50
Economic Profit
Residual Income C$24.24 C$26.29 C$33.60 76
ROIC Compounder C$3.66 C$7.76 72
Growth Earnings
Growth-Adj P/E C$33.97 C$48.53 C$63.09 68

Widest divergence: Growth Earnings (C$48.53) versus Economic Profit (C$3.66). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) C$12.7B
Net margin 4.1%
Return on equity 5.5%
Free cash flow −C$344M FY2025
P/E ratio 34.0
Operating margin 7.2%
More key figures
EPS (TTM) C$1.64
Dividend yield 2.3%
EPS growth (YoY) -64.1%
Net debt C$10.4B FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 42 · Market factors (momentum, volatility) 78

Profitability 31
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 31
Earnings quality: real cash, not paper profit
Fin. Strength 22
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 66
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

AltaGas Ltd. operates as an energy infrastructure company in North America. It operates through the Utilities and Midstream segments. The Utilities segment owns and operates franchised, cost-of-service, and rate-regulated natural gas distribution and storage utilities for residential and commercial customers.

Full company description

AltaGas Ltd. operates as an energy infrastructure company in North America. It operates through the Utilities and Midstream segments. The Utilities segment owns and operates franchised, cost-of-service, and rate-regulated natural gas distribution and storage utilities for residential and commercial customers. This segment also offers storage facilities and contracts for interstate natural gas transportation and storage services, as well as natural gas and electricity directly to residential, commercial, and industrial customers in Virginia, Maryland, Delaware, Pennsylvania, Ohio, New Jersey, and the District of Columbia. The Midstream segment is involved in the operation of two liquified petroleum gas export terminals; natural gas gathering, processing, and extraction; and fractionation and liquids handling; and natural gas and natural gas liquids marketing business, domestic logistics, trucking and rail terminals, and liquid and natural gas storage capability. In addition, the company operates gas-fired power generation and distribution assets with a generating capacity of 508 megawatts of power in California. AltaGas Ltd. was founded in 1994 and is headquartered in Calgary, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

AltaGas Ltd reported revenue of C$12.5B in FY2025 versus C$10.6B in FY2021, a compound +4.2%/yr. Reported net income was C$768M in FY2025, compounding +28.3%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
C$12.5B
Latest YoY
+0.8%
Avg. growth/yr (3Y)
−4.5%
Avg. growth/yr (5Y)
+17.3%
Avg. growth/yr (27Y)
+18.7%
Revenue +4.2%/yr
FY21 C$10.6B
FY22 C$14.4B
FY23 C$12.9B
FY24 C$12.4B
FY25 C$12.5B
Net income +28.3%/yr
FY21 C$283M
FY22 C$523M
FY23 C$673M
FY24 C$596M
FY25 C$768M

ALA screens 36% overvalued. Compare with Enbridge Inc →

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Cite: Fair Value Calculator (2026). "AltaGas Ltd Fair Value". https://www.fairvalue-calculator.com/stock/ALA

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Oil & Gas Midstream · 86 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside −36% · Below median
Return on equity (TTM) 5% · Below median
Return on assets 3% · Bottom 25%
Net margin (TTM) 4% · Below median
Operating margin (TTM) 7% · Bottom 25%
Revenue growth 0% · Below median
Dividend yield (TTM) 2.3% · Below median
Debt / equity 1.03× · Higher than median

Valuation Multiples vs Oil & Gas Midstream median · lower = cheaper

P/E (TTM) 33.8× · Pricier than 75% of peers
P/B 1.39× · Cheaper than median
P/S (TTM) 0.98× · Cheaper than median
EV/EBITDA 12.9× · Pricier than 75% of peers
PEG 1.92× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 0 · sector 42
PAST 22 · sector 41
HEALTH 49 · sector 55
DIVIDEND 47 · sector 99

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Midstream stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Enbridge Inc ENB $56.46 $47.20 -16%
The Williams Companies, Inc WMB $73.38 $12.03 -84%
Enterprise Products Partners L.P. EPD $38.31 $24.74 -35%
TC Energy Corporation TRP C$97.79 C$42.00 -57%
Kinder Morgan, Inc KMI $32.54 $11.12 -66%
Energy Transfer LP, ET $19.91 $17.69 -11%
ONEOK, Inc OKE $93.52 $64.05 -32%
Targa Resources Corp TRGP $273.35 $79.61 -71%
MPLX LP owns and MPLX $57.17 $37.05 -35%
Cheniere Energy, Inc LNG $255.83 $211.18 -17%

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Frequently asked questions

Is AltaGas Ltd (ALA) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of C$34.51 versus a price of C$53.88, about −36% (overvalued).
What is the fair value of ALA?
Our model-based fair value for AltaGas Ltd is C$34.51 (as of Jul 18, 2026), built from audited fundamentals. The current price is C$53.88.
What is the quality score of ALA?
AltaGas Ltd has a Quality Score of 56/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of AltaGas Ltd (ALA)?
AltaGas Ltd reported trailing-twelve-month revenue of about C$12.7B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of ALA?
The net profit margin of AltaGas Ltd is about 4.1%, meaning it keeps roughly 4.1% of revenue as net income. Based on the latest reported figures.
Does AltaGas Ltd pay a dividend?
AltaGas Ltd currently shows a dividend yield of about 2.31% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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