Hydro One Limited

TSX:H Stock Report

Market Cap: CA$28.6b

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$47.94) is trading above our estimate of fair value (CA$40.46)

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?

Other financial metrics that can be useful for relative valuation.

H 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/Revenue5.6x
Enterprise Value/EBITDA16.3x
PEG Ratio3.9x

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 Average17.6x
FTS Fortis
19.6x6.6%CA$30.6b
EMA Emera
21.4x10.5%CA$15.5b
CUP.U Caribbean Utilities Company
13.9x7.0%US$551.4m
BEPC Brookfield Renewable
15.3x-23.1%CA$15.3b
H Hydro One
25.6x6.6%CA$28.6b

Price-To-Earnings vs Peers: H is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the peer average (17.6x).

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
Industry Avg.n/a8.7%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.7%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: H is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the North American Electric Utilities industry average (20.1x).

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 Ratio25.6x
Fair PE Ratio24.4x

Price-To-Earnings vs Fair Ratio: H is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

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$47.94
CA$43.00
-10.3%
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$34.00n/a13
Nov ’24CA$37.22
CA$37.73
+1.4%
6.7%CA$42.00CA$34.00n/a13
Oct ’24CA$34.58
CA$38.42
+11.1%
6.4%CA$42.00CA$34.00n/a13
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
Nov ’23CA$34.00
CA$35.23
+3.6%
6.5%CA$39.00CA$30.00CA$37.2215
Oct ’23CA$33.78
CA$36.57
+8.2%
6.6%CA$41.00CA$30.00CA$34.5815
Sep ’23CA$35.44
CA$36.63
+3.4%
6.7%CA$41.00CA$30.00CA$36.0915

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

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