Published on 18 Jun 2024 on Simply Wall St. · via Yahoo Finance
An Intrinsic Calculation For Fortis Inc. (TSE:FTS) Suggests It's 22% Undervalued
Key Insights
The projected fair value for Fortis is CA$69.17 based on Dividend Discount ModelCurrent share price of CA$54.03 suggests Fortis is potentially 22% undervaluedOur fair value estimate is 23% higher than Fortis' analyst price target of CA$56.20
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Fortis Inc. (TSE:FTS) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.