Hydro One Valuation
| H Stock | CAD 54.55 0.71 1.32% |
At this time, the firm appears to be overvalued. Hydro One retains a regular Real Value of C$51.69 per share. The prevalent price of the firm is C$54.55. Our model calculates the value of Hydro One from evaluating the firm fundamentals such as Return On Asset of 0.0368, current valuation of 50.6 B, and Return On Equity of 0.11 as well as inspecting its technical indicators and probability of bankruptcy.
Overvalued
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 54.55 | Real 51.69 | Hype 54.55 | Naive 55.23 |
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: About Hydro One Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Hydro One. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hydro One based exclusively on its fundamental and basic technical indicators. By analyzing Hydro One's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Hydro One's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Hydro One. We calculate exposure to Hydro One's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Hydro One's related companies.Hydro One Limited, through its subsidiaries, operates as an electrical transmission and distribution company in Ontario. Hydro One Limited was incorporated in 2015 and is headquartered in Toronto, Canada. HYDRO ONE operates under Utilities - Regulated Electric classification in Canada and is traded on Toronto Stock Exchange. It employs 5708 people.
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.