ENB
Enbridge Inc.
$58.04
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 33.1% above fair value
You pay
$58.04
Bear
$34.89
Fair
$43.61
Bull
$52.33
Bear
$34.89
-39.9%
$2.49 × 14x P/E
Fair
$43.61
-24.9%
$2.49 × 17x P/E
Bull
$52.33
-9.8%
$2.49 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
23.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $46.86 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $43.61 per share.
Warnings
The company pays out 118% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
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