Atmos Energy Corporation

OVERVALUEDATO · NYSE · Utilities
ATO·NYSE·Utilities
OVERVALUED
Atmos Energy Corporation
48.1%downside
MARKET PRICE
$187.72
FAIR PRICE
$97.38
MARGIN
$90.34
UNDERVALUEDFAIROVERVALUED
P/E RATIO
24.3x
DIV. YIELD
2.00%
ROE
7.3%
MARKET CAP
$31B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

48.1%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$187.72

FAIR PRICE

$97.38

MARGIN

$90.34

UNDERVALUEDFAIROVERVALUED

P/E Ratio

24.3x

What is P/E? →

Div. Yield

2.00%

ROE

7.3%

Average

Market Cap

$31B

Large-cap

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FPI RATING

6.8/ 10

Low debt levels and consistent growth trajectory, but below-average fundamental quality and expensive valuation relative to fundamentals.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$77.90CONSERVATIVE ENTRY
$97.38FAIR PRICE
$187.72MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$77.90

Fair price × 0.80

DISTANCE

58.5%

Price to entry level

At the current price of $187.72, ATO trades 58.5% above the conservative entry level of $77.90. This entry level represents a 20% margin of safety below the calculated fair price of $97.38 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate ATO's fair price

Atmos Energy Corporation's fair price of $97.38 is derived from a blended model that combines DCF analysis (50%), relative valuation against Utilities peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $187.72, ATO trades 48.1% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting ATO's risk profile.

RELATIVE · 30%

Comparing ATO's valuation multiples against Utilities peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for ATO, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate ATO's fair value with your own inputs.

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FAQ

What is the fair price of ATO?+

Based on our blended model combining DCF analysis (50%), relative valuation against Utilities peers (30%), and analyst consensus (20%), the fair price for Atmos Energy Corporation is $97.38. At the current market price of $187.72, ATO trades 48.1% above its calculated fair value.

Is ATO overvalued or undervalued?+

Atmos Energy Corporation is currently overvalued based on our valuation model. The stock trades at $187.72, which is 48.1% above the fair price of $97.38. The P/E ratio of 24.3x is a key metric in the valuation.

What is the margin of safety for ATO?+

With a 20% margin of safety applied to the fair price of $97.38, the conservative entry level for ATO is $77.90. At the current market price of $187.72, the stock trades 58.5% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is ATO's fair price updated?+

We update fair price calculations for ATO daily after market close. The current fair price of $97.38 incorporates the latest market data and sector multiples.

What factors affect ATO's fair price calculation?+

ATO's fair price of $97.38 is derived from DCF analysis (50% weight), relative valuation against Utilities peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 24.3x, ROE of 7.3%, and dividend yield of 2.00%.

Is ATO a good buy right now?+

At $187.72, ATO trades 48.1% above our fair value estimate of $97.38. The stock is currently overvalued. ROE stands at 7.3% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does ATO pay dividends?+

ATO has a dividend yield of 2.00%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.