Hydro One Stock Current Valuation
| H Stock | CAD 48.99 0.05 0.10% |
Valuation analysis of Hydro One helps investors to measure Hydro One's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of the 22nd of March 2025, Enterprise Value Over EBITDA is likely to drop to 8.77. In addition to that, Enterprise Value Multiple is likely to drop to 8.77. Fundamental drivers impacting Hydro One's valuation include:
Undervalued
Today
Please note that Hydro One's price fluctuation is very steady at this time. Calculation of the real value of Hydro One is based on 3 months time horizon. Increasing Hydro One's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Hydro One is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hydro Stock. However, Hydro One's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 48.99 | Real 56.01 | Hype 49.17 | Naive 49.12 |
The intrinsic value of Hydro One's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Hydro One's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Hydro One helps investors to forecast how Hydro stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Hydro One more accurately as focusing exclusively on Hydro One's fundamentals will not take into account other important factors: Hydro One Company Current Valuation Analysis
Hydro One's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Hydro One Current Valuation | 46.41 B |
Most of Hydro One's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Hydro One is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Hydro Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Hydro One is extremely important. It helps to project a fair market value of Hydro Stock properly, considering its historical fundamentals such as Current Valuation. Since Hydro One's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Hydro One's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Hydro One's interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Hydro One has a Current Valuation of 46.41 B. This is 340.43% higher than that of the Electric Utilities sector and 38.21% higher than that of the Utilities industry. The current valuation for all Canada stocks is 179.2% lower than that of the firm.
Hydro Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Hydro One's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Hydro One could also be used in its relative valuation, which is a method of valuing Hydro One by comparing valuation metrics of similar companies.Hydro One is currently under evaluation in current valuation category among its peers.
Hydro One Current Valuation Drivers
We derive many important indicators used in calculating different scores of Hydro One from analyzing Hydro One's financial statements. These drivers represent accounts that assess Hydro One's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Hydro One's important valuation drivers and their relationship over time.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Market Cap | 17.1B | 19.7B | 21.7B | 23.6B | 26.5B | 27.9B | |
| Enterprise Value | 30.8B | 33.9B | 36.4B | 39.3B | 43.6B | 23.2B |
Hydro One ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Hydro One's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Hydro One's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Hydro Fundamentals
| Return On Equity | 0.0973 | ||||
| Return On Asset | 0.0354 | ||||
| Profit Margin | 0.14 % | ||||
| Operating Margin | 0.18 % | ||||
| Current Valuation | 46.41 B | ||||
| Shares Outstanding | 599.44 M | ||||
| Shares Owned By Insiders | 47.12 % | ||||
| Shares Owned By Institutions | 21.84 % | ||||
| Number Of Shares Shorted | 3.8 M | ||||
| Price To Earning | 15.93 X | ||||
| Price To Book | 2.43 X | ||||
| Price To Sales | 3.46 X | ||||
| Revenue | 8.48 B | ||||
| Gross Profit | 3.03 B | ||||
| EBITDA | 2.88 B | ||||
| Net Income | 1.16 B | ||||
| Cash And Equivalents | 530 M | ||||
| Cash Per Share | 0.06 X | ||||
| Total Debt | 1.35 B | ||||
| Debt To Equity | 130.00 % | ||||
| Current Ratio | 0.41 X | ||||
| Book Value Per Share | 20.17 X | ||||
| Cash Flow From Operations | 2.53 B | ||||
| Short Ratio | 3.96 X | ||||
| Earnings Per Share | 1.92 X | ||||
| Price To Earnings To Growth | 3.14 X | ||||
| Target Price | 45.19 | ||||
| Number Of Employees | 7.26 K | ||||
| Beta | 0.35 | ||||
| Market Capitalization | 29.4 B | ||||
| Total Asset | 36.68 B | ||||
| Retained Earnings | 6.36 B | ||||
| Working Capital | (1.38 B) | ||||
| Annual Yield | 0.03 % | ||||
| Net Asset | 36.68 B | ||||
| Last Dividend Paid | 1.24 |
About Hydro One Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Hydro One's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Hydro One using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Hydro One based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Hydro One
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hydro One position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hydro One will appreciate offsetting losses from the drop in the long position's value.Moving against Hydro Stock
The ability to find closely correlated positions to Hydro One could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hydro One when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hydro One - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hydro One to buy it.
The correlation of Hydro One is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hydro One moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hydro One moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hydro One can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Hydro Stock
Hydro One financial ratios help investors to determine whether Hydro Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Hydro with respect to the benefits of owning Hydro One security.