Black Hills Corporation (BKH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-185.9%

-$70.93

vs $82.59 price

Levered DCF

-$114.92

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.01

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	17.4×	14.97×	13.8×	17.67×	18.87×	16.84×	23.87×	13.22×
P/B	1.33×	1.17×	1.12×	1.52×	1.6×	1.5×	2.02×	1.57×
P/S	2.19×	1.92×	1.55×	1.79×	2.29×	2.26×	2.75×	1.95×
EV / EBITDA	11.59×	10.76×	10.74×	12.98×	13.88×	11.78×	13.95×	11.01×
Gross margin	38.5%	39.5%	34.2%	30.3%	36.2%	41.8%	38.5%	36.9%
Operating margin	23.3%	23.6%	20.3%	17.8%	21.0%	25.2%	23.4%	22.6%
Net margin	12.6%	12.8%	11.2%	10.1%	12.1%	13.4%	11.5%	14.7%
Current ratio	1.35×	0.97×	0.7×	0.64×	0.9×	0.71×	0.58×	0.78×
Debt / equity	1.23×	1.25×	1.37×	1.56×	1.63×	1.47×	1.48×	1.44×
Interest coverage	2.6×	2.58×	2.63×	2.8×	2.66×	2.96×	2.92×	2.8×
Dividend yield	3.9%	4.5%	4.7%	3.4%	3.3%	3.5%	2.6%	3.1%
Payout ratio	67.9%	66.8%	64.1%	60.6%	61.3%	59.5%	62.5%	41.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.6%	7.8%	8.2%	8.6%	8.5%	8.9%	8.4%	11.8%
Return on invested capital	4.6%	4.7%	4.8%	4.6%	4.6%	4.9%	5.0%	6.1%
Return on assets	2.7%	2.7%	2.7%	2.7%	2.6%	2.8%	2.6%	3.7%
Free cash flow yield	-2.9%	-0.6%	10.8%	-0.4%	-16.6%	-5.9%	-6.6%	0.9%
Earnings yield	5.8%	6.7%	7.3%	5.7%	5.3%	5.9%	4.2%	7.6%
Enterprise value	$9.6B	$8.5B	$7.9B	$9.2B	$9B	$7.6B	$8.2B	$6.5B
Net debt / EBITDA	5.46×	5.56×	5.84×	6.55×	7×	5.84×	5.89×	5.26×
Cash conversion cycle (days)	29	42	52	54	44	37	31	28