Hydro One Limited

TSX:H Stock Report

Market Cap: CA$26.2b

Hydro One Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: H (CA$43.57) is trading above our estimate of fair value (CA$40.94)

Significantly Below Fair Value: H is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for H. This is calculated by dividing H's market cap by their current earnings.
What is H's PE Ratio?
PE Ratio23x
EarningsCA$1.14b
Market CapCA$26.21b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for H vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.7x
FTS Fortis
18.5x6.5%CA$29.5b
EMA Emera
25.1x13.1%CA$15.8b
CUP.U Caribbean Utilities Company
15.2x8.6%US$587.8m
ALA AltaGas
19.8x14.1%CA$9.6b
H Hydro One
23x6.8%CA$26.2b

Price-To-Earnings vs Peers: H is expensive based on its Price-To-Earnings Ratio (23x) compared to the peer average (19.7x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
H 23.0xIndustry Avg. 20.2xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: H is expensive based on its Price-To-Earnings Ratio (23x) compared to the North American Electric Utilities industry average (20.2x).

Price to Earnings Ratio vs Fair Ratio

What is H'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.

H PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23x
Fair PE Ratio22.7x

Price-To-Earnings vs Fair Ratio: H is expensive based on its Price-To-Earnings Ratio (23x) compared to the estimated Fair Price-To-Earnings Ratio (22.7x).

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 H forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$43.57
CA$44.33
+1.8%
5.6%CA$47.00CA$37.00n/a12
Dec ’25CA$45.79
CA$44.25
-3.4%
5.5%CA$47.00CA$37.00n/a12
Nov ’25CA$44.72
CA$44.17
-1.2%
5.3%CA$46.00CA$37.00n/a12
Oct ’25CA$46.80
CA$43.73
-6.6%
5.7%CA$46.00CA$37.00n/a11
Sep ’25CA$45.81
CA$42.82
-6.5%
5.7%CA$46.00CA$37.00n/a11
Aug ’25CA$43.05
CA$40.27
-6.5%
5.2%CA$42.00CA$35.00n/a11
Jul ’25CA$39.85
CA$40.05
+0.5%
5.0%CA$42.00CA$35.00n/a11
Jun ’25CA$39.26
CA$39.95
+1.8%
5.1%CA$42.00CA$35.00n/a11
May ’25CA$38.63
CA$39.75
+2.9%
5.0%CA$42.00CA$35.00n/a12
Apr ’25CA$39.13
CA$40.08
+2.4%
4.6%CA$42.00CA$35.00n/a13
Mar ’25CA$40.64
CA$40.08
-1.4%
4.6%CA$42.00CA$35.00n/a13
Feb ’25CA$40.14
CA$39.35
-2.0%
6.0%CA$42.00CA$34.00n/a13
Jan ’25CA$39.70
CA$37.96
-4.4%
6.3%CA$42.00CA$34.00n/a13
Dec ’24CA$38.05
CA$37.96
-0.2%
6.3%CA$42.00CA$34.00CA$45.7913
Nov ’24CA$37.22
CA$37.73
+1.4%
6.7%CA$42.00CA$34.00CA$44.7213
Oct ’24CA$34.58
CA$38.42
+11.1%
6.4%CA$42.00CA$34.00CA$46.8013
Sep ’24CA$36.09
CA$38.75
+7.4%
5.7%CA$42.00CA$34.00CA$45.8114
Aug ’24CA$36.88
CA$38.73
+5.0%
6.7%CA$42.00CA$33.00CA$43.0513
Jul ’24CA$37.85
CA$39.12
+3.3%
7.8%CA$45.00CA$33.00CA$39.8513
Jun ’24CA$38.25
CA$38.77
+1.4%
7.8%CA$45.00CA$33.00CA$39.2615
May ’24CA$39.75
CA$38.17
-4.0%
8.7%CA$45.00CA$31.00CA$38.6315
Apr ’24CA$38.48
CA$37.77
-1.9%
7.5%CA$43.00CA$31.00CA$39.1315
Mar ’24CA$35.29
CA$37.70
+6.8%
7.2%CA$42.00CA$31.00CA$40.6415
Feb ’24CA$35.90
CA$37.33
+4.0%
7.8%CA$42.00CA$31.00CA$40.1415
Jan ’24CA$36.27
CA$36.04
-0.6%
8.8%CA$42.00CA$30.00CA$39.7014
Dec ’23CA$37.49
CA$35.17
-6.2%
5.7%CA$38.00CA$30.00CA$38.0515

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 23:32
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Hydro One Limited is covered by 23 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harshit GuptaAccountability Research Corporation
Ross Allen FowlerBarclays
Benjamin PhamBMO Capital Markets Equity Research