--- title: "Otter Tail (OTTR) Valuation Check After Rate Settlement Approval And Earnings Slowdown Forecast" type: "News" locale: "zh-CN" url: "https://longbridge.com/zh-CN/news/278786181.md" description: "Otter Tail (OTTR) received approval for a rate settlement from the South Dakota Public Utilities Commission, ensuring no base rate hikes until late 2029. Despite a recent share price dip, Otter Tail has shown strong long-term returns. Currently trading at a P/E of 13.1x, it appears cheaper than the broader market but slightly above its estimated fair value. However, forecasts indicate a potential 10.1% annual earnings decline over the next three years, raising concerns about its valuation. A DCF analysis suggests the stock may be overvalued at $86.36 compared to an estimated value of $68.11." datetime: "2026-03-11T22:32:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278786181.md) - [en](https://longbridge.com/en/news/278786181.md) - [zh-HK](https://longbridge.com/zh-HK/news/278786181.md) --- > 支持的语言: [English](https://longbridge.com/en/news/278786181.md) | [繁體中文](https://longbridge.com/zh-HK/news/278786181.md) # Otter Tail (OTTR) Valuation Check After Rate Settlement Approval And Earnings Slowdown Forecast The South Dakota Public Utilities Commission’s approval of Otter Tail (OTTR) subsidiary Otter Tail Power’s rate settlement, which includes a moratorium on further base rate hikes until late 2029, gives investors a clearer view of future regulated revenue. See our latest analysis for Otter Tail. Against this regulatory backdrop, Otter Tail’s share price has eased in the very short term, with a 7 day share price return of 3.89% and a 30 day share price return of 0.54%. However, its 1 year total shareholder return of 9.37% and 5 year total shareholder return of 114.87% point to momentum that has built over time rather than faded. If this kind of steady utility story appeals to you, it could also be a good moment to look at power grid related names using our 24 power grid technology and infrastructure stocks as a starting point. With the rate outlook clearer and the share price sitting close to analyst targets while long term returns remain strong, is Otter Tail quietly cheap right now, or has the market already priced in whatever growth lies ahead? ## Preferred P/E of 13.1x: Is it justified? Otter Tail currently trades at a P/E of 13.1x, which screens as cheaper than the broader US market and its utility peers, even though the shares sit slightly above the average analyst price target of $83 with a last close of $85.80. The P/E multiple simply compares the company’s share price to its earnings per share, so you are effectively paying 13.1 times recent earnings for each share of Otter Tail. For an electric utility with additional manufacturing and plastics operations, this is a common way investors shorthand expectations about earnings durability and profit trends. On one hand, Otter Tail’s P/E of 13.1x sits below the US market level of 19x and below the US Electric Utilities industry average of 21.8x. This suggests the shares are priced more conservatively than many peers. On the other hand, that 13.1x is slightly above an estimated fair P/E of 12.6x. This is a level the market could also gravitate toward if expectations cool, especially with earnings forecast to decline by an average of 10.1% per year over the next 3 years. Explore the SWS fair ratio for Otter Tail **Result: Price-to-Earnings of 13.1x (ABOUT RIGHT)** However, there are a couple of watchpoints, including forecasts for 10.1% average annual earnings declines and the recent share price premium to the US$83 analyst target. Find out about the key risks to this Otter Tail narrative. ## Another View: Cash Flows Paint A Tougher Picture While the P/E of 13.1x looks cheaper than the US market and utilities peers, our DCF model points the other way. Otter Tail is trading at $86.36 versus an estimated value of $68.11, which suggests the shares are expensive on a cash flow basis. So which signal should matter more to you? Look into how the SWS DCF model arrives at its fair value. OTTR Discounted Cash Flow as at Mar 2026 Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Otter Tail for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 48 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. ## Next Steps If this mix of positives and watchpoints feels finely balanced, it makes sense to move quickly and check the numbers for yourself, starting with 1 key reward and 2 important warning signs. ## Looking for more investment ideas? If Otter Tail is on your radar, do not stop there. The market is full of other potential opportunities worth putting on your watchlist today. - Spot fresh value by scanning our 48 high quality undervalued stocks, built to surface companies that pair quality fundamentals with prices that may not fully reflect them yet. - Prioritise resilience by checking the 69 resilient stocks with low risk scores, which filters for businesses with risk scores that may suit a more defensive section of your portfolio. - Hunt for future standouts through our screener containing 23 high quality undiscovered gems, highlighting lesser known names that still show strong underlying fundamentals. _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._ ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. Explore Now for Free ### 相关股票 - [Otter Tail (OTTR.US)](https://longbridge.com/zh-CN/quote/OTTR.US.md) - [ISHRS S&P Glb Utilities (JXI.US)](https://longbridge.com/zh-CN/quote/JXI.US.md) - [Select Sect Spdr Util (XLU.US)](https://longbridge.com/zh-CN/quote/XLU.US.md) ## 相关资讯与研究 - [Otter Tail Power Company Completes Rate Review in South Dakota | OTTR Stock News](https://longbridge.com/zh-CN/news/278606960.md) - [Duke Energy Corporation $DUK Shares Purchased by Moseley Investment Management Inc.](https://longbridge.com/zh-CN/news/281707323.md) - [Portofino Rebuilds South of Otter Land Position Through New Option Deal](https://longbridge.com/zh-CN/news/281277852.md) - [Raab & Moskowitz Asset Management LLC Sells 14,497 Shares of Public Service Enterprise Group Incorporated $PEG](https://longbridge.com/zh-CN/news/281682925.md) - [Did Otter Tail’s (OTTR) Expanded US$2.05 Billion Plan and Balanced Earnings Mix Just Redefine Its Story?](https://longbridge.com/zh-CN/news/280831903.md)