ENB
Enbridge Inc.
$56.24
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 31.0% above fair value
You pay
$56.24
Bear
$34.33
Fair
$42.92
Bull
$51.50
Bear
$34.33
-39.0%
$2.44 × 14x P/E
Fair
$42.92
-23.7%
$2.44 × 17x P/E
Bull
$51.50
-8.4%
$2.44 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
23.1x
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 $42.92 per share.
Warnings
The company pays out 121% 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 0.7082 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