Enbridge operates as an energy transportation and distribution company in the United States and Canada. The Company operates in five segments: Liquids Pipelines; Gas Distribution; Gas Pipelines, Processing and Energy Services; Sponsored Investments, and Corporate. The company was founded in 1949 and is based in Calgary, Canada.
ENB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ENB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Enbridge Inc ranked in the 94th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 4380.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ENB, they are:
The company's balance sheet shows it gets 58% of its capital from equity, and 42% of its capital from debt. Notably, its equity weight is greater than 66.54% of US equities in the Energy sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 1.76 years comes in at 1.35%; that's greater than 93.79% of US stocks we're applying DCF forecasting to.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ENB, try PBFX, SHLX, GPP, ENBL, and THTI.
Enbridge Inc (TSX:ENB)(NYSE:ENB) is one of the most reliable stocks in Canada. In recent weeks, shares have spiked higher by nearly 30%. The post PRICE ALERT: Enbridge (TSX:ENB) Stock Rockets Higher by 30% appeared first on The Motley Fool Canada .