NiSource Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: NI ($28.04) is trading below our estimate of fair value ($31.95)

Significantly Below Fair Value: NI 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 NI?

Other financial metrics that can be useful for relative valuation.

NI 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/Revenue5.2x
Enterprise Value/EBITDA12.5x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.9x
CMS CMS Energy
19.1x7.8%US$18.2b
BIP Brookfield Infrastructure Partners
83.2x45.8%US$13.8b
CNP CenterPoint Energy
20.9x9.7%US$18.8b
AEE Ameren
16.6x8.4%US$19.1b
NI NiSource
18.3x11.3%US$12.6b

Price-To-Earnings vs Peers: NI is good value based on its Price-To-Earnings Ratio (18.3x) compared to the peer average (34.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NI is expensive based on its Price-To-Earnings Ratio (18.3x) compared to the Global Integrated Utilities industry average (16.8x).


Price to Earnings Ratio vs Fair Ratio

What is NI'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.

NI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.3x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: NI is good value based on its Price-To-Earnings Ratio (18.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).


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 NI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$28.04
US$31.54
+12.5%
3.8%US$34.00US$30.00n/a10
May ’25US$28.10
US$30.05
+6.9%
4.9%US$33.00US$27.00n/a11
Apr ’25US$27.48
US$29.67
+8.0%
5.0%US$33.00US$27.00n/a12
Mar ’25US$26.13
US$29.58
+13.2%
5.1%US$33.00US$27.00n/a12
Feb ’25US$26.35
US$29.42
+11.6%
4.9%US$33.00US$27.00n/a12
Jan ’25US$26.55
US$29.00
+9.2%
5.5%US$33.00US$27.00n/a11
Dec ’24US$26.20
US$28.91
+10.3%
5.4%US$33.00US$27.00n/a11
Nov ’24US$25.40
US$29.10
+14.6%
7.4%US$33.00US$25.00n/a10
Oct ’24US$24.68
US$31.00
+25.6%
3.7%US$33.00US$30.00n/a9
Sep ’24US$26.56
US$31.11
+17.1%
3.5%US$33.00US$30.00n/a9
Aug ’24US$27.48
US$31.11
+13.2%
3.5%US$33.00US$30.00n/a9
Jul ’24US$27.35
US$31.00
+13.3%
3.7%US$33.00US$30.00n/a9
Jun ’24US$26.67
US$31.33
+17.5%
2.6%US$33.00US$30.00n/a9
May ’24US$28.51
US$31.11
+9.1%
2.4%US$32.00US$30.00US$28.109
Apr ’24US$27.96
US$31.00
+10.9%
2.6%US$32.00US$30.00US$27.489
Mar ’24US$26.83
US$31.00
+15.5%
2.5%US$32.00US$30.00US$26.1310
Feb ’24US$27.86
US$30.60
+9.8%
3.6%US$32.00US$28.00US$26.3510
Jan ’24US$27.42
US$29.70
+8.3%
6.0%US$32.00US$27.00US$26.5510
Dec ’23US$27.75
US$29.10
+4.9%
6.0%US$32.00US$27.00US$26.2010
Nov ’23US$25.83
US$30.64
+18.6%
7.0%US$34.00US$27.00US$25.4011
Oct ’23US$25.19
US$32.42
+28.7%
4.1%US$34.00US$30.00US$24.6812
Sep ’23US$29.73
US$32.17
+8.2%
4.0%US$34.00US$30.00US$26.5612
Aug ’23US$30.34
US$31.75
+4.6%
3.4%US$34.00US$30.00US$27.4812
Jul ’23US$30.05
US$32.42
+7.9%
4.6%US$35.00US$30.00US$27.3512
Jun ’23US$31.34
US$32.42
+3.4%
4.6%US$35.00US$30.00US$26.6712
May ’23US$29.12
US$32.67
+12.2%
7.8%US$36.00US$28.00US$28.5112

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


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