Is It Too Late To Consider Fortis (TSX:FTS) After Its Strong Five Year Run?

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If you are wondering whether Fortis is still fairly priced after its recent run, this article walks through what the current share price might be implying about the company's value. Fortis recently closed at C$79.30, with returns of 0.4% over 7 days, 1.4% over 30 days, 11.3% year to date, 29.9% over 1 year, 49.3% over 3 years, and 75.3% over 5 years. This naturally raises questions about what is already built into the price. Recent coverage has focused on Fortis as a key name in the Canadian utilities space, with attention on how its regulated operations fit into portfolios looking for stability and income. This interest helps frame the latest share price moves as investors reassess how they view risk and reliability in the sector. On Simply Wall St's 6 point valuation checklist, Fortis currently scores a 3 out of 6. The rest of this article will compare what different valuation methods say about that score and finish with a practical way to interpret these numbers in context.

Find out why Fortis's 29.9% return over the last year is lagging behind its peers.

Approach 1: Fortis Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model looks at the cash Fortis is expected to generate in the future and discounts those cash flows back to today to estimate what the business might be worth per share right now.

For Fortis, the latest twelve month Free Cash Flow is a loss of CA$1,339.6m. Analysts and model estimates then project Free Cash Flow gradually shifting to positive territory, with the Simply Wall St 2 Stage Free Cash Flow to Equity model extending those forecasts out over the coming years. By 2030, the model uses a projected Free Cash Flow of CA$1,514m, with intermediate annual figures based on a mix of analyst inputs and extrapolated estimates.

Pulling these projections together, the DCF output suggests an estimated intrinsic value of about CA$163.46 per share. Compared with the recent share price of CA$79.30, this implies the stock is 51.5% undervalued according to this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Fortis is undervalued by 51.5%. Track this in your watchlist or portfolio, or discover 8 more high quality undervalued stocks.FTS Discounted Cash Flow as at Apr 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Fortis.

Approach 2: Fortis Price vs Earnings

For a profitable company like Fortis, the P/E ratio is a straightforward way to connect what you pay today with the earnings that the business is currently generating. It helps you see how much the market is willing to pay for each dollar of earnings.

Story Continues

What counts as a “normal” P/E depends on how fast earnings are expected to grow and how risky those earnings are. Higher expected growth and lower perceived risk usually support higher P/E multiples, while slower growth or higher risk tend to point to lower ones.

Fortis is currently trading at a P/E of 23.56x. That sits above the Electric Utilities industry average of 15.79x and the peer group average of 20.24x, so on simple comparisons the shares carry a higher multiple than many peers. Simply Wall St’s Fair Ratio for Fortis is 25.48x. This is an internally derived P/E that reflects factors such as earnings growth, risk profile, profit margins, industry and market cap. Because it pulls these elements together, the Fair Ratio can give a more tailored view than a plain industry or peer comparison.

With the Fair Ratio of 25.48x modestly above the current P/E of 23.56x, the shares appear slightly undervalued on this measure.

Result: UNDERVALUEDTSX:FTS P/E Ratio as at Apr 2026

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Upgrade Your Decision Making: Choose your Fortis Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives are introduced here as your way to attach a clear story to the numbers by setting your own view on Fortis' future revenue, earnings and margins. You then link that story to a forecast and to a Fair Value that you can compare with the current price on Simply Wall St's Community page, where millions of investors share views and where each Narrative automatically updates when new information such as news or earnings arrives. For example, one Fortis investor might lean toward the higher analyst Fair Value of CA$85.00 based on confidence in data center driven growth and regulated returns. Another might anchor closer to the lower CA$70.00 Fair Value because of concerns around regulation and capital costs. Each can quickly see whether their Fair Value sits above or below the latest share price and decide how to act.

Do you think there's more to the story for Fortis? Head over to our Community to see what others are saying!TSX:FTS 1-Year Stock Price Chart

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FTS.TO.

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