Enbridge Valuation

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

Below Fair Value: ENB ($35.94) is trading below our estimate of fair value ($63.36)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ENB 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/Revenue4.3x
Enterprise Value/EBITDA13.7x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ENB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.3x
WMB Williams Companies
14.2x-0.5%US$46.6b
EPD Enterprise Products Partners
11.5x3.7%US$62.6b
MPLX MPLX
10.8x1.7%US$41.0b
KMI Kinder Morgan
16.8x6.6%US$40.1b
ENB Enbridge
17.8x9.7%US$102.5b

Price-To-Earnings vs Peers: ENB is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (13.3x).


Price to Earnings Ratio vs Industry

How does ENB's PE Ratio compare vs other companies in the US Oil and Gas Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-0.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-0.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ENB is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the US Oil and Gas industry average (9x).


Price to Earnings Ratio vs Fair Ratio

What is ENB'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.

ENB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.8x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: ENB is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).


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 ENB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$35.94
US$38.43
+6.9%
11.2%US$44.33US$25.86n/a21
Mar ’25US$34.80
US$39.07
+12.3%
10.5%US$44.42US$25.17n/a22
Feb ’25US$35.86
US$39.55
+10.3%
10.7%US$46.27US$26.12n/a21
Jan ’25US$36.02
US$37.81
+5.0%
12.9%US$44.89US$25.02n/a19
Dec ’24US$35.18
US$37.95
+7.9%
12.6%US$44.27US$25.19n/a19
Nov ’24US$32.40
US$37.50
+15.8%
11.2%US$43.27US$29.14n/a19
Oct ’24US$33.19
US$40.52
+22.1%
9.6%US$47.38US$29.92n/a18
Sep ’24US$35.51
US$41.67
+17.4%
5.7%US$46.31US$38.23n/a19
Aug ’24US$36.36
US$43.78
+20.4%
6.4%US$49.11US$39.29n/a19
Jul ’24US$37.15
US$44.26
+19.1%
6.4%US$49.24US$39.39n/a19
Jun ’24US$36.22
US$42.81
+18.2%
5.9%US$47.81US$38.25n/a20
May ’24US$39.56
US$42.92
+8.5%
6.1%US$48.01US$38.41n/a20
Apr ’24US$38.15
US$42.15
+10.5%
6.4%US$47.24US$37.79n/a20
Mar ’24US$38.01
US$42.66
+12.2%
6.4%US$47.80US$38.24US$34.8021
Feb ’24US$40.72
US$43.63
+7.1%
6.8%US$48.85US$39.08US$35.8621
Jan ’24US$39.10
US$42.54
+8.8%
6.6%US$47.60US$38.08US$36.0221
Dec ’23US$40.96
US$43.25
+5.6%
6.5%US$48.39US$38.71US$35.1821
Nov ’23US$38.92
US$42.77
+9.9%
6.8%US$47.78US$38.96US$32.4021
Oct ’23US$37.10
US$43.48
+17.2%
6.1%US$48.51US$38.37US$33.1921
Sep ’23US$41.01
US$46.79
+14.1%
6.1%US$52.17US$41.27US$35.5121
Aug ’23US$44.53
US$46.70
+4.9%
6.4%US$52.32US$41.39US$36.3620
Jul ’23US$42.66
US$46.60
+9.2%
6.3%US$51.96US$41.10US$37.1521
Jun ’23US$45.95
US$46.84
+1.9%
6.4%US$52.28US$41.36US$36.2221
May ’23US$43.64
US$46.13
+5.7%
6.3%US$52.34US$41.41US$39.5621
Apr ’23US$46.40
US$45.45
-2.1%
4.5%US$48.75US$42.35US$38.1523
Mar ’23US$43.38
US$44.22
+1.9%
4.2%US$47.12US$41.62US$38.0123

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


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