Is HRNNF undervalued?

AlphaMadera's AlphaVal page classifies Hydro One Limited 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 HRNNF as undervalued, fairly valued, or overvalued.

What is Hydro One Limited's fair value?

Fair value for HRNNF 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 HRNNF?

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

HRNNF - Hydro One Limited

Price: -- -- | CONSENSUS: Hold DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 85% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Strong

Trading 47.6% above fair value

Current Price $37.23

Bear Case $22.07 40.7% downside ($22.07 - $37.23) / $37.23 = -40.7% $1.58 × 14x P/E

Fair Value $25.23 32.2% downside ($25.23 - $37.23) / $37.23 = -32.2% $1.58 × 16x P/E

Bull Case $28.38 23.8% downside ($28.38 - $37.23) / $37.23 = -23.8% $1.58 × 18x P/E

Adjust Assumptions

P/E Multiple

16.0x

Adjusted EPS

1.58$

Key Value Driver

Normalized P/E multiple (16x base case)

Terminal Value % of EV

Implied Market Multiple 23.6x

Market is pricing in (growth)

Plain-Language Summary

Applying a 16x P/E to adjusted EPS of $1.58, the base-case value is $25.23 per share. DDM cross-check: $20.86.

Warnings

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