Emera Valuation

Is EMA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EMA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EMA (CA$47.59) is trading below our estimate of fair value (CA$236.91)

Significantly Below Fair Value: EMA is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for EMA?

Other financial metrics that can be useful for relative valuation.

EMA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.5x
Enterprise Value/EBITDA11.9x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

How does EMA's PE Ratio compare to its peers?

The above table shows the PE ratio for EMA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
FTS Fortis
17.5x6.5%CA$26.3b
H Hydro One
21.9x6.3%CA$23.7b
CUP.U Caribbean Utilities Company
13.9x4.2%US$522.6m
ALA AltaGas
13.6x5.0%CA$8.7b
EMA Emera
13.9x5.2%CA$13.6b

Price-To-Earnings vs Peers: EMA is good value based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (16.7x).


Price to Earnings Ratio vs Industry

How does EMA's PE Ratio compare vs other companies in the North American Electric Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: EMA is good value based on its Price-To-Earnings Ratio (13.9x) compared to the North American Electric Utilities industry average (17.8x).


Price to Earnings Ratio vs Fair Ratio

What is EMA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EMA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.9x
Fair PE Ratio20.7x

Price-To-Earnings vs Fair Ratio: EMA is good value based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (20.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EMA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$47.59
CA$52.86
+11.1%
8.1%CA$60.00CA$44.00n/a14
Mar ’25CA$47.90
CA$52.79
+10.2%
8.7%CA$60.00CA$44.00n/a14
Feb ’25CA$48.17
CA$53.93
+12.0%
9.7%CA$62.00CA$45.00n/a14
Jan ’25CA$50.30
CA$54.75
+8.8%
8.9%CA$62.00CA$45.00n/a14
Dec ’24CA$48.37
CA$54.75
+13.2%
8.9%CA$62.00CA$45.00n/a14
Nov ’24CA$46.64
CA$55.93
+19.9%
8.9%CA$64.00CA$48.00n/a14
Oct ’24CA$47.42
CA$57.57
+21.4%
7.1%CA$64.00CA$48.00n/a14
Sep ’24CA$51.27
CA$58.40
+13.9%
7.5%CA$66.00CA$48.00n/a15
Aug ’24CA$52.79
CA$59.00
+11.8%
7.9%CA$68.00CA$48.00n/a15
Jul ’24CA$54.56
CA$59.07
+8.3%
8.5%CA$68.00CA$46.00n/a15
Jun ’24CA$55.92
CA$59.75
+6.8%
8.3%CA$68.00CA$46.00n/a16
May ’24CA$57.66
CA$58.94
+2.2%
8.7%CA$68.00CA$46.00n/a16
Apr ’24CA$55.52
CA$58.50
+5.4%
8.6%CA$68.00CA$46.00n/a16
Mar ’24CA$53.30
CA$58.63
+10.0%
8.8%CA$68.00CA$46.00CA$47.9016
Feb ’24CA$53.16
CA$58.38
+9.8%
10.2%CA$68.00CA$42.00CA$48.1716
Jan ’24CA$51.75
CA$58.13
+12.3%
10.6%CA$68.00CA$42.00CA$50.3016
Dec ’23CA$52.71
CA$57.38
+8.9%
10.5%CA$68.00CA$42.00CA$48.3716
Nov ’23CA$50.55
CA$58.80
+16.3%
10.0%CA$72.00CA$48.75CA$46.6416
Oct ’23CA$55.89
CA$65.13
+16.5%
8.0%CA$74.00CA$52.00CA$47.4216
Sep ’23CA$61.46
CA$65.13
+6.0%
8.2%CA$74.00CA$52.00CA$51.2716
Aug ’23CA$60.71
CA$64.20
+5.8%
8.2%CA$72.00CA$50.25CA$52.7916
Jul ’23CA$60.30
CA$64.60
+7.1%
7.7%CA$72.00CA$50.25CA$54.5617
Jun ’23CA$62.83
CA$65.19
+3.8%
8.4%CA$75.00CA$50.25CA$55.9217
May ’23CA$62.03
CA$64.62
+4.2%
9.2%CA$75.00CA$46.50CA$57.6617
Apr ’23CA$62.92
CA$62.26
-1.0%
8.1%CA$70.00CA$46.50CA$55.5217
Mar ’23CA$59.28
CA$61.91
+4.4%
7.9%CA$70.00CA$46.50CA$53.3017

Analyst Forecast: Target price is less than 20% higher than the current share price.


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