EMRAF
Emera Incorporated
$45.13
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 27.0% above fair value
You pay
$45.13
Bear
$31.10
Fair
$35.54
Bull
$39.98
Bear
$31.10
-31.1%
$1.98 × 16x P/E
Fair
$35.54
-21.3%
$1.98 × 18x P/E
Bull
$39.98
-11.4%
$1.98 × 20x P/E
Key Value Driver
Normalized P/E multiple (18x base case)
Implied Market Multiple
22.8x
Summary
Applying a 18x P/E to adjusted EPS of $1.98, the base-case value is $35.54 per share.
Warnings
Financial statements were converted from CAD into USD using USDCAD at 0.7239 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