Black Hills Corporation

DB:BHI Stock Report

Market Cap: €4.4b

Black Hills Valuation

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

Below Fair Value: BHI (€61.42) is trading below our estimate of fair value (€89.85)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BHI. This is calculated by dividing BHI's market cap by their current earnings.
What is BHI's PE Ratio?
PE Ratio18.1x
EarningsUS$254.70m
Market CapUS$4.60b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BHI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.4x
MNV6 Mainova
33.7xn/a€1.9b
MVV1 MVV Energie
12.3xn/a€2.0b
WWG Gelsenwasser
14.2xn/a€1.8b
EOAN E.ON
17.5x8.9%€31.4b
BHI Black Hills
18.1x9.8%€4.6b

Price-To-Earnings vs Peers: BHI is good value based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (19.4x).

Price to Earnings Ratio vs Industry

How does BHI's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BHI 18.1xIndustry Avg. 17.5xNo. of Companies7PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BHI is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the Global Integrated Utilities industry average (17.5x).

Price to Earnings Ratio vs Fair Ratio

What is BHI'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.

BHI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.1x
Fair PE Ratio19.8x

Price-To-Earnings vs Fair Ratio: BHI is good value based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).

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 BHI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€61.42
€59.91
-2.5%
9.4%€71.33€53.50n/a6
Nov ’25€54.22
€59.17
+9.1%
9.8%€71.19€52.70n/a6
Oct ’25€54.66
€57.67
+5.5%
10.0%€69.57€51.50n/a6
Sep ’25€52.72
€58.10
+10.2%
10.2%€69.04€51.11n/a5
Aug ’25€54.40
€56.40
+3.7%
13.4%€70.96€49.77n/a5
Jul ’25€50.48
€56.01
+11.0%
14.5%€71.41€49.15n/a5
Jun ’25€50.56
€56.01
+10.8%
14.5%€71.41€49.15n/a5
May ’25€51.18
€55.76
+9.0%
15.0%€72.29€49.76n/a5
Apr ’25€49.80
€54.08
+8.6%
16.5%€71.06€45.22n/a5
Mar ’25€48.00
€54.08
+12.7%
15.2%€71.39€45.43n/a6
Feb ’25€48.00
€54.06
+12.6%
15.2%€70.76€45.03n/a6
Jan ’25€49.00
€53.15
+8.5%
15.8%€70.36€44.78n/a6
Dec ’24€47.20
€53.15
+12.6%
15.8%€70.36€44.78n/a6
Nov ’24€46.00
€57.75
+25.6%
13.1%€72.90€50.18€54.226
Oct ’24€47.80
€58.86
+23.1%
11.5%€72.33€49.78€54.666
Sep ’24€50.50
€59.07
+17.0%
10.4%€69.97€50.89€52.726
Aug ’24€54.50
€59.03
+8.3%
10.1%€69.22€50.34€54.406
Jul ’24€55.50
€60.38
+8.8%
8.6%€70.09€54.62€50.486
Jun ’24€57.00
€60.31
+5.8%
8.0%€69.91€54.47€50.567
May ’24€59.50
€62.07
+4.3%
8.1%€72.10€56.18€51.187
Apr ’24€57.64
€62.07
+7.7%
8.1%€72.10€56.18€49.807
Mar ’24€57.88
€62.07
+7.2%
8.1%€72.10€56.18€48.007
Feb ’24€66.46
€71.88
+8.2%
6.1%€77.27€65.31€48.007
Jan ’24€66.64
€70.47
+5.7%
6.9%€78.62€61.78€49.007
Dec ’23€68.42
€74.35
+8.7%
8.3%€83.91€64.93€47.207
Nov ’23€65.80
€76.48
+16.2%
8.0%€85.17€66.92€46.007

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

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