EMRAF
Emera Incorporated
$45.13
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 28.1% above fair value
You pay
$45.13
Bear
$30.83
Fair
$35.24
Bull
$39.64
Bear
$30.83
-31.7%
$1.96 × 16x P/E
Fair
$35.24
-21.9%
$1.96 × 18x P/E
Bull
$39.64
-12.2%
$1.96 × 20x P/E
Key Value Driver
Normalized P/E multiple (18x base case)
Implied Market Multiple
23.0x
Summary
Applying a 18x P/E to adjusted EPS of $1.96, the base-case value is $35.24 per share.
Warnings
Financial statements were converted from CAD into USD using USDCAD at 0.7106 USD per CAD.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples