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DCF valuation

What is Talen Energy Corp worth?

With the base-case assumptions below, a discounted cash flow model on Talen Energy Corp's reported free cash flow gives -$66.42 per share. The share price was $304.42 on September 25, 2026, 558% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$606M
Average free cash flow, last 5 years
$219M
Cash
$231M
balance sheet of June 30, 2026
Debt
$9.57B
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
45,692,000
Revenue growth per year, last 12 years
-4.5%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-9.5%-3.5%2.0%10.0%-$115.80-138%
Base-4.5%-1.0%2.5%9.0%-$66.42-122%
Bull0.5%2.0%3.0%8.0%$31.64-90%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%-$32.75-$22.85-$10.74$4.40$23.87
8.0%-$57.60-$51.17-$43.58-$34.46-$23.33
9.0%-$75.89-$71.49-$66.42-$60.51-$53.52
10.0%-$89.93-$86.81-$83.27-$79.22-$74.55
11.0%-$101.07-$98.78-$96.22-$93.34-$90.08

Where the presets come from

Base: years 1 to 5 grow at Talen Energy Corp's revenue growth rate over the last 12 fiscal years (-4.5% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Talen Energy Corp company page