Otter Tail (OTTR) DCF: History & Chart

Otter Tail Corporation(OTTR)

Conglomerates · Fergus Falls, MN

$89.20+0.78 (+0.88%)

Delayed quote: Oct 6, 2026, 4:00 PM EDT

About Otter Tail Corporation

Otter Tail Corporation, an entity founded in 1907 and based in Fergus Falls, Minnesota, is a diversified enterprise conducting business in the United States across three primary sectors: an electric utility, manufacturing operations, and the production of plastic pipes. The company adopted its current name in 2001, having previously been known as Otter Tail Power Company. The Electric segment is responsible for generating, transmitting, distributing, and selling electricity. It serves approximately 133,000 residential, industrial, and commercial customers across Minnesota, North Dakota, and South Dakota. This segment draws its power from a mix of sources including coal, wind, hydroelectric, and natural gas, and actively participates in the Midcontinent Independent System Operator, Inc. (MISO) markets. Through its Manufacturing segment, the company offers services such as contract machining, metal parts stamping, fabrication, and painting. It also produces specialized plastic thermoformed products, including containers for horticultural purposes, packaging solutions for the life sciences and industrial sectors, and components for material handling. These products cater to a wide array of industries, such as recreational vehicles, agriculture, construction, lawn and garden, and industrial and energy equipment. Additionally, this segment manufactures custom packaging like clamshells, blister packs, and returnable trays, designed to transport and store unusually shaped or delicate parts for clients in the horticulture, medical, industrial, recreation, and electronics fields. Finally, the Plastics segment focuses on manufacturing polyvinyl chloride (PVC) pipes. These pipes are essential for various water management applications, including municipal water supply, rural water systems, wastewater treatment, storm drainage, and water reclamation projects. The products from this segment are sold to wholesalers and distributors through a combination of independent sales representatives, internal sales personnel, and dedicated customer service teams.

Fergus Falls, MN

2,198 employees

www.ottertail.com

Industrials / Conglomerates

Sector: Industrials
Industry: Conglomerates
CEO: Charles S. MacFarlane

View full financials

Otter Tail Corporation (OTTR) DCF Valuation

Price is ABOVE the estimated range

$26.52

$67.87

Model scenario range

$89.20

Today's price

TGM's two-stage DCF values Otter Tail Corporation (OTTR) between $26.52 and $67.87 depending on assumptions, with a base case of $42.43. Growth is taken from the company's own record (5-year revenue CAGR), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.

What would today's price require?

Growth the price assumes+19.4%/yr

Actual revenue growth, last 5 years+5.4%/yr

$89.20 is justified only if free cash flow grows about +19.4% a year (fading to 2.5% long-run) at a 7.5% required return — faster than the company has actually grown.

Scenario	FCF growth (fading to 2.5%)	Discount	Value / share
Conservative	2.4%/yr	8.5%	$26.52
Base case	5.4%/yr	7.5%	$42.43
Optimistic	8.4%/yr	6.5%	$67.87
Third-party model estimate (FMP)	independent reference · retrieved Oct 6, 2026 · assumptions not provided		$90.63

The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.

Price|PE Ratio|FCF Yield|All Metrics

Current Price

$89.20

Market-Implied Growth

+19.4%/yr

vs +5.4% 5Y actual

Model Scenario Range

$26.52 – $67.87

model output — not a price target

OTTR DCF Fair Value Calculator

Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for OTTR (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.

FCF Growth Rate5.4%/yr

Historical FCF CAGR: N/A

Discount Rate (WACC)7.5%

Terminal Growth2.5%

Projection Years10yr

Base inputs: FCF $107.6M · 0.04B shares · net debt $717.6M

Estimated Fair Value

$42.43

-52.4% vs $89.20

Current price$89.20

Third-party model estimate (FMP)$90.63

Sensitivity — fair value by discount rate × terminal growth

How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.4%/yr FCF growth and 10-year horizon fixed. Green = above today's $89.20; red = below. Your current case is outlined.

WACC ↓ / Terminal →	1.50%	2.00%	2.50%	3.00%	3.50%
5.5%	$60.20	$69.84	$82.69	$101	$128
6.5%	$44.51	$50.30	$57.53	$66.82	$79.19
7.5%	$34.05	$37.87	$42.43	$48.01	$54.98
8.5%	$26.59	$29.27	$32.38	$36.06	$40.46
9.5%	$21.01	$22.97	$25.20	$27.78	$30.78