Otter Tail stock: fair value
OTTRThe fair value of Otter Tail under our model is $48.00, the price is 57% above.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Significantly overvaluedIn our model the price counts as cheap below $40.00 and expensive above $59.99 (uncertainty low, based on the price swings of the past year).
Calculated with a cost of equity of 8.8%. At 9.8% the fair value would be $39.83, at 7.8% it would be $60.26.
Where the number comes from
From the cash-flow model alone; the profit includes one-off items, so there is no industry value.
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 3.8%. Discounted at 8.8% (floor: government bond yield 3.8% plus 5 percentage points, since beta 0.8 times the risk premium would give less); no analyst estimates were available.
Calculate with your own assumptionsThe calculation step by step
With these figures the cash flow model arrives at $48.00 per share: free cash flow for the next ten years, each year discounted to today at 8.8%, plus the terminal value for the years after. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Year | Free cash flow | Source | Discount factor | Present value (discounted at 8.8%) |
|---|---|---|---|---|
| 2026 | $84.7M | extrapolated at 13.4% | 0.9189 | $77.83M |
| 2027 | $93.61M | extrapolated at 10.5% | 0.8443 | $79.04M |
| 2028 | $101.58M | extrapolated at 8.5% | 0.7758 | $78.81M |
| 2029 | $108.8M | extrapolated at 7.1% | 0.7129 | $77.56M |
| 2030 | $115.47M | extrapolated at 6.1% | 0.6550 | $75.63M |
| 2031 | $121.74M | extrapolated at 5.4% | 0.6019 | $73.27M |
| 2032 | $127.77M | extrapolated at 5.0% | 0.5530 | $70.67M |
| 2033 | $133.67M | extrapolated at 4.6% | 0.5082 | $67.93M |
| 2034 | $139.53M | extrapolated at 4.4% | 0.4669 | $65.15M |
| 2035 | $145.41M | extrapolated at 4.2% | 0.4291 | $62.39M |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $728.28M |
| Terminal value: cash flow 2035 × (1 + 3.8%) / (8.8% − 3.8%) | $3.02B |
| Present value of terminal value (× 0.4291) | $1.3B |
| Equity value (sum plus present value of terminal value) | $2.02B |
| Shares (diluted) | 42.17M |
| Value per share (equity value divided by shares) | $48.00 |
| Fair value (from the cash flow model alone) | $48.00 |
The model uses free cash flow after interest, which belongs to shareholders, discounted at the cost of equity. Net debt is therefore not deducted again.
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2025, period end 31 Dec 2025
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Neutral, published since 7 Nov 2026 (in the score history since 31 Jul 2026)
- Valuation signal Overvalued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.