Fortis Inc. (FTS.TO) 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

-123.3%

-CA$19.33

vs CA$82.95 price

Levered DCF

-CA$85.74

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.87

Distress zone

Rating

B-

Overall 2 / 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	20.99×	18.44×	17.65×	19.49×	23.38×	20×	14.22×	16.55×
P/B	1.51×	1.24×	1.24×	1.23×	1.49×	1.29×	1.27×	1.17×
P/S	2.95×	2.57×	2.31×	2.35×	3.04×	2.71×	2.68×	2.3×
EV / EBITDA	11.93×	11.91×	11.39×	12.17×	13.57×	12.3×	12.14×	12.14×
Gross margin	72.3%	45.4%	42.2%	39.9%	42.1%	44.1%	43.4%	43.0%
Operating margin	28.7%	28.6%	26.8%	24.8%	26.1%	28.1%	34.6%	28.2%
Net margin	14.8%	14.6%	13.7%	12.6%	13.7%	14.3%	19.6%	13.9%
Current ratio	0.51×	0.63×	0.67×	0.65×	0.57×	0.63×	0.62×	0.77×
Debt / equity	1.46×	1.42×	1.4×	1.38×	1.35×	1.33×	1.25×	1.5×
Interest coverage	2.36×	2.34×	2.36×	2.49×	2.46×	2.41×	2.94×	2.43×
Dividend yield	2.4%	2.8%	2.9%	2.8%	2.3%	3.5%	2.4%	2.7%
Payout ratio	48.5%	48.7%	48.8%	52.9%	51.9%	66.8%	32.6%	45.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.6%	7.1%	7.3%	6.6%	6.7%	6.8%	9.3%	7.1%
Return on invested capital	4.1%	3.9%	4.0%	3.7%	3.8%	4.0%	5.1%	4.1%
Return on assets	2.4%	2.2%	2.3%	2.1%	2.2%	2.2%	3.1%	2.1%
Free cash flow yield	-6.0%	-4.5%	-2.3%	-3.1%	-1.7%	-5.5%	-4.5%	-3.2%
Earnings yield	5.0%	5.7%	5.9%	5.4%	4.5%	5.3%	7.3%	6.0%
Enterprise value	CA$70.2B	CA$63B	CA$56B	CA$54.8B	CA$54.6B	CA$48.8B	CA$46.4B	CA$43.8B
Net debt / EBITDA	5.83×	6.33×	5.98×	6.41×	6.42×	6.2×	5.98×	6.78×
Cash conversion cycle (days)	-9	28	28	46	30	14	4	8