BKH Valuation

Black Hills Corp

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57.110

+0.58(1.026%)1D

Overview
Forecast
Valuation
Earnings

BKH Relative Valuation

BKH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BKH is overvalued; if below, it's undervalued.

Historical Valuation

Black Hills Corp (BKH) is now in the Undervalued zone, suggesting that its current forward PE ratio of 12.70 is considered Undervalued compared with the five-year average of 15.90. The fair price of Black Hills Corp (BKH) is between 66.00 to 79.72 according to relative valuation methord. Compared to the current price of 56.53 USD , Black Hills Corp is Undervalued By 14.35%.

Relative Value

Fair Zone

66.00-79.72

Current Price：56.53

14.35%

Undervalued

12.86

Trailing

Forward

7.56

EV/EBITDA

Black Hills Corp. (BKH) has a current EV/EBITDA of 7.56. The 5-year average EV/EBITDA is 11.14. The thresholds are as follows: Strongly Undervalued below 8.38, Undervalued between 8.38 and 9.76, Fairly Valued between 12.52 and 9.76, Overvalued between 12.52 and 13.89, and Strongly Overvalued above 13.89. The current Forward EV/EBITDA of 7.56 falls within the Strongly Undervalued range.

10.87

EV/EBIT

Black Hills Corp. (BKH) has a current EV/EBIT of 10.87. The 5-year average EV/EBIT is 16.34. The thresholds are as follows: Strongly Undervalued below 12.17, Undervalued between 12.17 and 14.25, Fairly Valued between 18.43 and 14.25, Overvalued between 18.43 and 20.51, and Strongly Overvalued above 20.51. The current Forward EV/EBIT of 10.87 falls within the Strongly Undervalued range.

1.58

Black Hills Corp. (BKH) has a current PS of 1.58. The 5-year average PS is 1.89. The thresholds are as follows: Strongly Undervalued below 1.26, Undervalued between 1.26 and 1.57, Fairly Valued between 2.20 and 1.57, Overvalued between 2.20 and 2.52, and Strongly Overvalued above 2.52. The current Forward PS of 1.58 falls within the Historic Trend Line -Fairly Valued range.

6.00

P/OCF

Black Hills Corp. (BKH) has a current P/OCF of 6.00. The 5-year average P/OCF is 9.66. The thresholds are as follows: Strongly Undervalued below -26.32, Undervalued between -26.32 and -8.33, Fairly Valued between 27.66 and -8.33, Overvalued between 27.66 and 45.65, and Strongly Overvalued above 45.65. The current Forward P/OCF of 6.00 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Black Hills Corp. (BKH) has a current P/FCF of 0.00. The 5-year average P/FCF is 223.82. The thresholds are as follows: Strongly Undervalued below -1715.73, Undervalued between -1715.73 and -745.95, Fairly Valued between 1193.60 and -745.95, Overvalued between 1193.60 and 2163.38, and Strongly Overvalued above 2163.38. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Black Hills Corp (BKH) has a current Price-to-Book (P/B) ratio of 1.11. Compared to its 3-year average P/B ratio of 1.27 , the current P/B ratio is approximately -12.32% higher. Relative to its 5-year average P/B ratio of 1.39, the current P/B ratio is about -20.07% higher. Black Hills Corp (BKH) has a Forward Free Cash Flow (FCF) yield of approximately -0.18%. Compared to its 3-year average FCF yield of 3.00%, the current FCF yield is approximately -105.91% lower. Relative to its 5-year average FCF yield of -2.75% , the current FCF yield is about -93.54% lower.

1.13

P/B

Median3y

1.27

Median5y

1.39

-0.18

FCF Yield

Median3y

3.00

Median5y

-2.75

Competitors Valuation Multiple

The average P/S ratio for BKH's competitors is 2.03, providing a benchmark for relative valuation. Black Hills Corp Corp (BKH) exhibits a P/S ratio of 1.58, which is -22.11% above the industry average. Given its robust revenue growth of 10.85%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

New Jersey Resources Corp

MDU Resources Group Inc

Chesapeake Utilities Corp

3.25

21.55%

2.81B

Performance Decomposition

Market capitalization of BKH decreased by 3.29% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 726.40M to 805.20M.

The secondary factor is the Margin Expansion, contributed -6.51%to the performance.

Overall, the performance of BKH in the past 1 year is driven by Revenue Growth. Which is more sustainable.

10.85%

726.40M → 805.20M

Revenue Growth

-6.51%

18.12 → 16.94

Margin Expansion

-7.63%

15.48 → 14.30

P/E Change

-3.29%