Is EMRAF undervalued?

AlphaMadera's AlphaVal page classifies Emera Incorporated as a Stable Earnings Power business and values it using P/Adj-EPS × Normalized Multiple, then compares the result to the current market price to flag EMRAF as undervalued, fairly valued, or overvalued.

What is Emera Incorporated's fair value?

Fair value for EMRAF comes from a P/Adj-EPS × Normalized Multiple model -- the approach AlphaVal selected for this company's Stable Earnings Power classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value EMRAF?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. EMRAF was classified as Stable Earnings Power and is valued using P/Adj-EPS × Normalized Multiple, built from EMRAF's most recent reported fundamentals.

EMRAF - Emera Incorporated

Price: -- --

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 85% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Mild

Trading 11.3% above fair value

Current Price $45.13

Bear Case $35.50 21.3% downside ($35.50 - $45.13) / $45.13 = -21.3% $2.54 × 14x P/E

Fair Value $40.57 10.1% downside ($40.57 - $45.13) / $45.13 = -10.1% $2.54 × 16x P/E

Bull Case $45.64 1.1% upside ($45.64 - $45.13) / $45.13 = 1.1% $2.54 × 18x P/E

Adjust Assumptions

P/E Multiple

16.0x

Adjusted EPS

2.54$

Key Value Driver

Normalized P/E multiple (16x base case)

Terminal Value % of EV

Implied Market Multiple 17.8x

Market is pricing in (growth)

Plain-Language Summary

Applying a 16x P/E to adjusted EPS of $2.54, the base-case value is $40.57 per share. DDM cross-check: $30.66.

Warnings

⚠ The company pays out 84% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.

ℹ Dividend-based valuation: $30.66 (below our primary estimate by 24%). Large gaps may signal the dividend doesn't reflect full earning power.

ℹ Financial statements were converted from CAD into USD using USDCAD at 0.7102 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