FTS Valuation

Fortis Inc

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49.740

+0.16(0.323%)1D

Overview
Forecast
Valuation
Earnings

FTS Relative Valuation

FTS'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, FTS is overvalued; if below, it's undervalued.

Historical Valuation

Fortis Inc (FTS) is now in the Overvalued zone, suggesting that its current forward PE ratio of 20.10 is considered Overvalued compared with the five-year average of 18.88. The fair price of Fortis Inc (FTS) is between 43.41 to 49.50 according to relative valuation methord. Compared to the current price of 49.74 USD , Fortis Inc is Overvalued By 0.49%.

Relative Value

Fair Zone

43.41-49.50

Current Price：49.74

0.49%

Overvalued

20.10

Trailing

Forward

11.91

EV/EBITDA

Fortis Inc. (FTS) has a current EV/EBITDA of 11.91. The 5-year average EV/EBITDA is 12.38. The thresholds are as follows: Strongly Undervalued below 10.37, Undervalued between 10.37 and 11.37, Fairly Valued between 13.39 and 11.37, Overvalued between 13.39 and 14.40, and Strongly Overvalued above 14.40. The current Forward EV/EBITDA of 11.91 falls within the Historic Trend Line -Fairly Valued range.

19.37

EV/EBIT

Fortis Inc. (FTS) has a current EV/EBIT of 19.37. The 5-year average EV/EBIT is 18.81. The thresholds are as follows: Strongly Undervalued below 16.85, Undervalued between 16.85 and 17.83, Fairly Valued between 19.80 and 17.83, Overvalued between 19.80 and 20.78, and Strongly Overvalued above 20.78. The current Forward EV/EBIT of 19.37 falls within the Historic Trend Line -Fairly Valued range.

2.67

Fortis Inc. (FTS) has a current PS of 2.67. The 5-year average PS is 2.51. The thresholds are as follows: Strongly Undervalued below 2.03, Undervalued between 2.03 and 2.27, Fairly Valued between 2.75 and 2.27, Overvalued between 2.75 and 2.98, and Strongly Overvalued above 2.98. The current Forward PS of 2.67 falls within the Historic Trend Line -Fairly Valued range.

8.05

P/OCF

Fortis Inc. (FTS) has a current P/OCF of 8.05. The 5-year average P/OCF is 7.78. The thresholds are as follows: Strongly Undervalued below 6.65, Undervalued between 6.65 and 7.21, Fairly Valued between 8.34 and 7.21, Overvalued between 8.34 and 8.91, and Strongly Overvalued above 8.91. The current Forward P/OCF of 8.05 falls within the Historic Trend Line -Fairly Valued range.

706.89

P/FCF

Fortis Inc. (FTS) has a current P/FCF of 706.89. The 5-year average P/FCF is -13.05. The thresholds are as follows: Strongly Undervalued below -588.61, Undervalued between -588.61 and -300.83, Fairly Valued between 274.74 and -300.83, Overvalued between 274.74 and 562.52, and Strongly Overvalued above 562.52. The current Forward P/FCF of 706.89 falls within the Strongly Overvalued range.

Fortis Inc (FTS) has a current Price-to-Book (P/B) ratio of 1.56. Compared to its 3-year average P/B ratio of 1.39 , the current P/B ratio is approximately 12.59% higher. Relative to its 5-year average P/B ratio of 1.44, the current P/B ratio is about 8.29% higher. Fortis Inc (FTS) has a Forward Free Cash Flow (FCF) yield of approximately -4.44%. Compared to its 3-year average FCF yield of -2.39%, the current FCF yield is approximately 85.50% lower. Relative to its 5-year average FCF yield of -2.46% , the current FCF yield is about 80.24% lower.

1.56

P/B

Median3y

1.39

Median5y

1.44

-4.44

FCF Yield

Median3y

-2.39

Median5y

-2.46

Competitors Valuation Multiple

The average P/S ratio for FTS's competitors is 2.03, providing a benchmark for relative valuation. Fortis Inc Corp (FTS) exhibits a P/S ratio of 2.67, which is 31.56% above the industry average. Given its robust revenue growth of 5.43%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Companhia Paranaense de Energia

Consolidated Edison Inc

Energy of Minas Gerais Co

1.01

5.21%

5.81B

Performance Decomposition

Market capitalization of FTS increased by 10.56% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 14.49 to 15.77.

The secondary factor is the Revenue Growth, contributed 5.43%to the performance.

Overall, the performance of FTS in the past 1 year is driven by Margin Expansion. Which is more sustainable.

5.43%

2.67B → 2.82B

Revenue Growth

8.83%

14.49 → 15.77

Margin Expansion

-3.70%

20.87 → 20.10

P/E Change

10.56%