Alliant Energy (LNT) drew investor attention after reaffirming its 2026 earnings guidance and indicating results are currently tracking in the upper half of its ongoing EPS range, alongside releasing second quarter earnings.

Over the past year, Alliant Energy has combined a 7.03% year to date share price gain with a 10.06% 1 year total shareholder return. However, the recent 30 day share price decline of 8.33% suggests some of the optimism around reaffirmed 2026 earnings guidance and steady quarterly results is cooling in the short term.

If Alliant Energy's grid focused story has your attention, it may be a good moment to look at other power infrastructure opportunities through the 37 power grid technology and infrastructure stocks

After a sharp pullback against reaffirmed 2026 guidance and a visible gap to analyst targets, the key question is where fair value for Alliant Energy sits across that range of estimates and the current share price.

Most Popular Narrative: 11.3% Undervalued

At a last close of $70.20 against a narrative fair value of $79.13, Alliant Energy is framed as undervalued based on long term earnings and revenue expectations.

The accelerating construction and onboarding of large-scale data centers in Alliant's Midwest service areas highlight a strong, sustained uptick in electricity demand, directly linked to population and economic growth in the region, which is expected to drive significant increases in revenue and top-line growth over the next several years.

There is a full set of building blocks behind that $79.13 figure. Revenue pacing, margin expansion, and a future earnings multiple all work together. Curious which assumptions do the heavy lifting and how they connect to Alliant Energy's contracted data center pipeline and capital plan.

Result: Fair Value of $79.13 (UNDERVALUED)

However, Alliant Energy's story could change quickly if large data center projects are delayed or if regulators in Iowa or Wisconsin shift toward less supportive rate frameworks.

Another View: SWS DCF Model Points The Other Way

There is a clear split between the Alliant Energy narrative fair value of $79.13 and the SWS DCF model. On the DCF view, Alliant Energy's current share price of $70.20 sits above an estimated cash flow value of $66.87, which frames the stock as overvalued rather than undervalued.

This gap is not huge, but it does suggest less margin for error if cash flows track closer to the DCF path than to the narrative earnings path. It puts the focus on your own conviction about load growth, regulation, and returns on new projects. Which set of assumptions feels closer to how Alliant Energy will actually perform?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Alliant Energy 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 51 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

The mix of optimism and caution around Alliant Energy means opinions will likely differ. Act quickly, review the data, and weigh both sides by checking the 1 key reward and 2 important warning signs

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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.