ENB
Enbridge Inc.
$48.01
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 21.5% above fair value
You pay
$48.01
Bear
$31.61
Fair
$39.51
Bull
$47.41
Bear
$31.61
-34.2%
$2.31 × 14x P/E
Fair
$39.51
-17.7%
$2.31 × 17x P/E
Bull
$47.41
-1.2%
$2.31 × 20x P/E
Adjust Assumptions
17.1x
2.31$
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
20.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (25 analysts)
$61.63
Divergence from AlphaVal
36%
Summary
Applying a 17x P/E to adjusted EPS of $2.31, the base-case value is $39.51 per share. DDM cross-check: $40.19.
Warnings
The company pays out 120% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Wall Street's average price target is $61.63 (from 25 analysts). Our estimate is 36% below the consensus -- consider that gap carefully.
Financial statements were converted from CAD into USD using USDCAD at 0.7140 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