Fortis Inc.

TSX:FTS Stock Report

Market Cap: CA$31.1b

Fortis Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 FTS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FTS (CA$62.58) is trading below our estimate of fair value (CA$68.46)

Significantly Below Fair Value: FTS is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As FTS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FTS. This is calculated by dividing FTS's market cap by their current earnings.
What is FTS's PE Ratio?
PE Ratio19.6x
EarningsCA$1.59b
Market CapCA$31.08b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FTS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.1x
H Hydro One
24x6.8%CA$27.1b
EMA Emera
24.2x14.2%CA$15.2b
CUP.U Caribbean Utilities Company
14.8x8.6%US$573.5m
ALA AltaGas
21.5x14.2%CA$10.3b
FTS Fortis
19.6x6.6%CA$31.1b

Price-To-Earnings vs Peers: FTS is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (21.1x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FTS 19.6xIndustry Avg. 21.0xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FTS is good value based on its Price-To-Earnings Ratio (19.6x) compared to the North American Electric Utilities industry average (21x).

Price to Earnings Ratio vs Fair Ratio

What is FTS'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.

FTS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.6x
Fair PE Ratio22.8x

Price-To-Earnings vs Fair Ratio: FTS is good value based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).

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 FTS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$62.58
CA$60.75
-2.9%
8.6%CA$65.00CA$43.00n/a14
Nov ’25CA$59.74
CA$60.00
+0.4%
7.1%CA$65.00CA$46.00n/a14
Oct ’25CA$61.57
CA$58.93
-4.3%
9.2%CA$63.00CA$40.00n/a14
Sep ’25CA$59.30
CA$58.58
-1.2%
9.9%CA$63.00CA$40.00n/a12
Aug ’25CA$57.90
CA$57.00
-1.6%
10.0%CA$62.00CA$40.00n/a12
Jul ’25CA$53.17
CA$55.83
+5.0%
10.2%CA$61.00CA$38.00n/a13
Jun ’25CA$54.51
CA$56.20
+3.1%
10.0%CA$61.00CA$38.00n/a14
May ’25CA$54.36
CA$55.99
+3.0%
9.9%CA$61.00CA$38.00n/a14
Apr ’25CA$53.39
CA$55.77
+4.5%
10.6%CA$62.00CA$38.00n/a16
Mar ’25CA$52.28
CA$55.75
+6.6%
11.0%CA$62.00CA$38.00n/a16
Feb ’25CA$54.17
CA$56.40
+4.1%
11.2%CA$64.00CA$39.00n/a16
Jan ’25CA$54.51
CA$56.22
+3.1%
10.6%CA$64.00CA$40.00n/a16
Dec ’24CA$54.84
CA$55.97
+2.1%
11.4%CA$64.00CA$40.00n/a15
Nov ’24CA$56.02
CA$56.03
+0.02%
11.3%CA$64.00CA$40.00CA$59.7415
Oct ’24CA$51.59
CA$58.25
+12.9%
7.0%CA$64.00CA$49.00CA$61.5714
Sep ’24CA$53.40
CA$59.17
+10.8%
6.7%CA$65.00CA$51.00CA$59.3015
Aug ’24CA$55.55
CA$60.03
+8.1%
6.2%CA$65.00CA$53.00CA$57.9015
Jul ’24CA$57.09
CA$60.07
+5.2%
6.6%CA$65.00CA$52.00CA$53.1715
Jun ’24CA$56.79
CA$59.35
+4.5%
8.2%CA$65.00CA$49.00CA$54.5117
May ’24CA$59.52
CA$58.06
-2.5%
6.6%CA$65.00CA$49.00CA$54.3617
Apr ’24CA$57.45
CA$57.71
+0.4%
6.9%CA$65.00CA$49.00CA$53.3917
Mar ’24CA$53.48
CA$57.65
+7.8%
6.8%CA$65.00CA$49.00CA$52.2817
Feb ’24CA$55.21
CA$57.18
+3.6%
7.1%CA$65.00CA$49.00CA$54.1717
Jan ’24CA$54.18
CA$56.53
+4.3%
7.3%CA$65.00CA$49.00CA$54.5117
Dec ’23CA$54.14
CA$56.00
+3.4%
7.8%CA$65.00CA$49.00CA$54.8417
Nov ’23CA$52.74
CA$56.53
+7.2%
8.0%CA$65.00CA$49.00CA$56.0217

Analyst Forecast: Target price is lower than the current share price.

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