Fortis Inc.

TSX:FTS Stock Report

Market Cap: CA$27.5b

Fortis Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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$55.39) is trading below our estimate of fair value (CA$69.17)

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?

Other financial metrics that can be useful for relative valuation.

FTS 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/Revenue5.4x
Enterprise Value/EBITDA12.3x
PEG Ratio2.7x

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 Average16.8x
H Hydro One
22x6.4%CA$24.2b
EMA Emera
22.8x11.8%CA$14.3b
CUP.U Caribbean Utilities Company
13.8x4.8%US$533.2m
BEPC Brookfield Renewable
8.8x-33.6%CA$16.2b
FTS Fortis
17.9x6.6%CA$27.5b

Price-To-Earnings vs Peers: FTS is expensive based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (16.8x).

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
Industry Avg.n/a7.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.9%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: FTS is expensive based on its Price-To-Earnings Ratio (17.9x) compared to the North American Electric Utilities industry average (17.8x).

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 Ratio17.9x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: FTS is good value based on its Price-To-Earnings Ratio (17.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

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$55.39
CA$56.20
+1.5%
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$40.00n/a15
Oct ’24CA$51.59
CA$58.25
+12.9%
7.0%CA$64.00CA$49.00n/a14
Sep ’24CA$53.40
CA$59.17
+10.8%
6.7%CA$65.00CA$51.00n/a15
Aug ’24CA$55.55
CA$60.03
+8.1%
6.2%CA$65.00CA$53.00n/a15
Jul ’24CA$57.09
CA$60.07
+5.2%
6.6%CA$65.00CA$52.00n/a15
Jun ’24CA$56.79
CA$59.35
+4.5%
8.2%CA$65.00CA$49.00n/a17
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
Oct ’23CA$52.48
CA$60.32
+14.9%
7.3%CA$65.00CA$49.00CA$51.5917
Sep ’23CA$58.34
CA$60.56
+3.8%
6.9%CA$65.00CA$49.00CA$53.4017
Aug ’23CA$60.49
CA$60.09
-0.7%
7.1%CA$65.00CA$49.00CA$55.5517
Jul ’23CA$60.85
CA$60.44
-0.7%
7.4%CA$66.00CA$49.00CA$57.0917
Jun ’23CA$62.98
CA$60.74
-3.6%
7.2%CA$66.00CA$49.00CA$56.7917
May ’23CA$62.51
CA$60.38
-3.4%
7.3%CA$66.00CA$49.00CA$59.5217

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlansLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & Enterprise
Financial Services GuideTerms and ConditionsPrivacy PolicyLogos provided by Clearbit
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.